by Aima Raza
SSV Network wants to launch a permissionless staking system for Lido to offer its services to institutions in a more decentralized way. The new solution would bring Distributed Validator Technology from SSV into Lido’s operator set on Ethereum to make staking more dependable.
The approval of this first third-party module into Lido Staking Router will broaden the variety of node operators managing the network. The rise in institutional demand for Ether staking products after Trump’s 2024 election victory drives the new product launch. Main financial companies began investing in crypto because they expect better regulations in the future.
Lido released v3 upgrade tools to let institutions flexibly stake and connect new services. Many experts recommend improving staking infrastructure so big institutions would invest in it.
SSV Boosts Staking Security
According to Muroch who leads staking development efforts the current infrastructure needs better solutions to handle coordination errors at individual points. Through DVT players receive Ethereum-compatible staking that further lowers their exposure to risk in the process.
“By using SSV, coordination is programmatically taken care of (e.g., using DKG), which reduces human error, and by utilizing DVT, institutions can increase performance and reduce risk of downtime by distributing node operations between multiple nodes instead of relying on just one node.”
The SSV Network manages 2 million staked ETH worth more than $4.7 billion based on 1,400 operators from around the globe as shown in the SSV Network explorer data.
The proposal aims to make Ethereum more decentralized while allowing professional investors to stake their funds securely without reliance on trust. According to Elad Gafini the SSV Foundation operations manager this new setup will create secure and trust-free opportunities for everyone.
“The SSV Network Foundation welcomes the growing adoption of our permissionless infrastructure, which expands access to Ethereum staking and reinforces Ethereum’s decentralization.”
The merger of SSV Network’s DVT solution into Lido will advance staking security by allowing more users to participate in blockchain-based networks. An approved integration would lead to more third-party solutions within Lido which supports Ethereum’s strategy to embrace decentralization and attract institutional investors.
#blockchain #crypto, #decentralized, #distributed, #ledger
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