Breaking Down the Barriers: How DVT is Making Ethereum Accessible to All
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The world of crypto has often been criticized for its high barriers to entry, particularly when it comes to becoming a validator on the Ethereum network. With the current cost of thirty-two ETH (Ethereum) – a sum that is out of reach for the average individual – the network risks becoming centralized to the wealthy.
However, a new technology known as Distributed Validator Technology (DVT) is set to change this narrative.
After attending the recent StakingRewards conference in Istanbul, it’s clear that DVT is revolutionizing the Ethereum landscape. By allowing individuals to stake with as little as 1 ETH or even 0.01 ETH, DVT is making Ethereum more accessible and decentralized.
This article will delve into the intricacies of DVT, its impact on Ethereum’s robustness, and how it’s paving the way for a more inclusive cryptocurrency future.
“𝘐𝘵 𝘴𝘪𝘮𝘱𝘭𝘺 𝘤𝘰𝘴𝘵𝘴 𝘵𝘰𝘰 𝘮𝘶𝘤𝘩 𝘵𝘰 𝘣𝘦𝘤𝘰𝘮𝘦 𝘢𝘯 𝘌𝘵𝘩𝘦𝘳𝘦𝘶𝘮 𝘷𝘢𝘭𝘪𝘥𝘢𝘵𝘰𝘳”
“𝘛𝘩𝘦 𝘢𝘷𝘦𝘳𝘢𝘨𝘦 𝘱𝘦𝘳𝘴𝘰𝘯 𝘸𝘪𝘭𝘭 𝘯𝘦𝘷𝘦𝘳 𝘣𝘦 𝘢𝘣𝘭𝘦 𝘵𝘰 𝘢𝘧𝘧𝘰𝘳𝘥 𝘵𝘩𝘪𝘳𝘵𝘺 𝘵𝘸𝘰 𝘌𝘛𝘏”
“𝘛𝘩𝘦 𝘯𝘦𝘵𝘸𝘰𝘳𝘬 𝘸𝘪𝘭𝘭 𝘧𝘰𝘳𝘦𝘷𝘦𝘳 𝘣𝘦 𝘤𝘦𝘯𝘵𝘳𝘢𝘭𝘪𝘻𝘦𝘥 𝘵𝘰 𝘵𝘩𝘦 𝘸𝘦𝘢𝘭𝘵𝘩𝘺 𝘪𝘧 𝘵𝘩𝘦 𝘣𝘢𝘳𝘳𝘪𝘦𝘳 𝘵𝘰 𝘦𝘯𝘵𝘳𝘺 𝘪𝘴 𝘴𝘰 𝘩𝘪𝘨𝘩”
You may have heard these claims from people regarding the hefty ($60,000+ currently) investment to become a full Ethereum node…
Its hard to argue against the facts.
However, after spending the last 5 hours at @StakingRewards in Istanbul, I can confidently tell you the majority of the population will soon be able to run a validator on Ethereum by using whats known as “DVT” or distributed validator technology.
This idea of DVT has blown up in my face throughout this single day conference, its been absolutely everywhere, and for good reason…
DVT allows people to have access to Ethereum staking with a very small amount of ETH, in @divastaking’s case just 1 ETH.
In @ClayStack_HQ’s users can have as little as 0.01 with their unique bonding mechanism.
This is huge because it expands the decentralization of Ethereum and makes Ethereum more robust. Whether you’re a solo staker, home staker, liquid staking, squad staker, or a validator, the goal of DVT is to decentralize the network.
When you deposit into @LidoFinance, they take your ETH, put it in a pool and create a full validator to 32 ETH. This validator is then split into keys to form a “cluster” between node operators running on the network.
The goal is to have as many keys as possible so that unforeseen events don’t compromise the network.
(𝘪𝘮𝘢𝘨𝘦 𝘧𝘳𝘰𝘮 ethereum 𝘴𝘪𝘵𝘦)
For example, a power outage, or one node operator not paying for their server bill, won’t cause a downfall of the network.
Staking service providers are looking to operate with at least several operators so that if a few go down, they aren’t slashed significantly.
Slashing occurs when a node operator acts against the aligned interest of the network. In proof of stake, your tokens are your monetary stake, so you are incentivized to act in accordance with the networks ‘rules’ so to speak.
𝗔𝗻𝘆𝘄𝗮𝘆𝘀, 𝗯𝗮𝗰𝗸 𝘁𝗼 𝗗𝗩𝗧:
DVT allows you to “decentralize every layer” meaning having validator keys in every region, with different types of servers (some hardware in a data center, some cloud software) and millions of individual validator key owners across various geographical locations.
DVT increases the security of Ethereum, minimizes slashing/downtime, improves diversity and security of node operators, and enhances overall Ethereum decentralization.
One team I spoke to was: @ssv_network, they are a ‘DVT based’ infra for liquid staking, people can use SSV to build diff types of apps.
A cool feature of @ssv_network is “zero coordination” which means you can easily swap from one node operator to another if your current node operator isn’t performing or acting within the rules of the network.
They have rolled out in four stages, first a closed test, then verified operators, now launch partners (over 900 validators – 60M TVL), and soon permissionless node operators.
Very soon, users will be able to stake directly thru SSV.
Also @ObolNetwork is another infra (middleware) here working on DVT. They have rolled out with select launch partners recently, including @Figment_io testing their DVs out for their alpha.
Many more teams not mentioned here at @StakingRewards are pushing this space forward including @tenderize_me, @puffer_finance, @luganodes, @RockawayX_Infra and more.
𝗔 𝗳𝗲𝘄 𝗸𝗲𝘆 𝘁𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀:
1. DVT is changing the landscape of Ethereum staking in a more robust, decentralized, resilient manner.
2. Tons of large capital is VERY interested in staking with “staking service providers” who will be utilizing DVT themselves.
3. The buzz around PoS networks has not waned one bit as teams are fighting for mindshare and many new launches in this vertical are happening in Q4 ’23 and Q1 ’24.
I’ve really enjoyed @StakingRewards thus far and have learned quite a bit. Thanks for reading this far my frens, and hope you’re getting your yield game on.
𝗧𝗵𝗲 𝘁𝗶𝗺𝗲 𝗶𝘀 𝗻𝗼𝘄. 𝗛𝗮𝘃𝗲 𝗳𝘂𝗻. 𝗕𝗲 𝘀𝗺𝗮𝗿𝘁. 𝗧𝗲𝗹𝗹 𝘆𝗼𝘂𝗿 𝗳𝗿𝗶𝗲𝗻𝗱𝘀 𝗮𝗯𝗼𝘂𝘁 𝗗𝗩𝗧. 𝗜𝘁𝘀 𝗵𝗲𝗿𝗲.
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