ssv.network is a protocol for Ethereum staking that splits validator keys across multiple operators, enhancing staking security and fault tolerance.

Secret Shared Validator (SSV), or Distributed Validator Technology (DVT), revolutionizes Ethereum staking by splitting a validator key into multiple KeyShares, distributed across non-trusting nodes. This decentralized setup ensures active-active redundancy, fault tolerance, and improved uptime by eliminating single points of failure. Operating as a non-custodial system, SSV securely stores validator keys offline while enabling KeyShares to perform independently, enhancing security and network resilience. With its innovative approach, SSV strengthens Ethereum’s ecosystem, providing an optimal staking solution for solo stakers, pools, and services—an advancement made possible by ssv.network.

What is ssv.network (SSV)?

ssv.network (SSV) began as a research initiative introduced by the Ethereum Foundation in 2019, aiming to decentralize Ethereum staking through Distributed Validator Technology (DVT). Over time, it evolved into a community-driven, Decentralized Autonomous Organization (DAO) model, with participation from stakers, developers, and node operators worldwide. On April 7, 2021, the first SSV Network testnet launched, followed by a second version in July. The incentivized Primus testnet went live in early 2022, running for two five-week phases.

Later, Testnet V2, dubbed Shifu, launched on August 22, 2022, and Testnet V3 (JATO) debuted in March 2023. These phases led to SSV Network’s mainnet launch in December 2023, bringing a suite of staking applications powered by DVT. Currently, SSV Network supports over 1.4 million ETH staked and more than 1,000 decentralized node operators globally.

To fuel further growth, ssv.network established funding initiatives, including a $50 million Ecosystem Fund supported by partners like Hashkey Capital, NGC Ventures, and SevenX Ventures. Additionally, a $5 million community-led Grants Program assists developers building DVT-based staking solutions. Led by CEO and co-founder Alon Muroch, ssv.network continues to push forward decentralized staking, providing robust fault tolerance and security for the Ethereum ecosystem.

How Does ssv.network Work? Distributed Validator Technology and Network Structure

Distributed Validator Technology (DVT) is at the heart of ssv.network, providing a secure, decentralized framework for Ethereum staking fundamentally different from traditional validator setups. Rather than relying on a single node, DVT allows validator duties to be distributed across multiple independent, non-trusting nodes. This distribution introduces active-active redundancy, which means the validator remains operational even if some nodes experience downtime, thereby achieving fault tolerance. For Ethereum validators, DVT ensures that the network remains robust, secure, and more resilient to potential failures, which is critical for the growth and health of decentralized finance (DeFi).

DVT relies on several advanced cryptographic techniques to achieve its decentralized structure. The first is Distributed Key Generation (DKG), a process that generates a validator key shared across multiple participants, or operators. Each operator holds only a portion of the validator’s private key, which prevents any single operator from having full control. This method safeguards the validator from unilateral actions, enhancing security by distributing power across multiple parties.

Another vital component is Shamir’s Secret Sharing scheme, which allows the validator key to be split into several “KeyShares.” An individual operator holds each KeyShare, and a predefined threshold of KeyShares is needed to reconstruct the validator key for signing transactions. This design allows the validator to continue functioning even if some nodes are unavailable, reducing the risk of downtime. This fault-tolerant system is crucial for maintaining high availability in staking operations, as validators must remain online to earn rewards and avoid slashing penalties.

Multi-Party Computation (MPC) further strengthens DVT’s decentralized architecture by allowing operators to jointly perform validation duties without reconstructing the validator key on any single device. MPC enables each operator to share encrypted signing messages rather than the private key itself, preserving the security and decentralization of the validator across multiple nodes. By distributing the computation process, MPC ensures that validator duties can be performed safely and efficiently without centralizing control or increasing the risk of key exposure.

At the core of DVT’s consensus mechanism is the Istanbul Byzantine Fault Tolerance (IBFT) algorithm. IBFT plays a crucial role in ensuring that the validator duties are executed accurately and securely, even if some nodes are offline or malfunctioning. IBFT works by randomly selecting one of the nodes holding a KeyShare to propose a new block or validate a transaction. This proposal is then verified by the other nodes, and once a majority consensus is reached (usually 66% or more), the transaction is approved and added to the blockchain. IBFT ensures that ssv.network can maintain consensus and prevent malicious activities, even if some nodes are compromised or fail to respond.

Together, these technologies form a robust and fault-tolerant multi-signature system that secures Ethereum validators on ssv.network. This approach not only enhances security and decentralization but also facilitates a slashing-free staking environment, as validators are less likely to be penalized for downtime caused by node failures. The distributed structure of DVT aligns with Ethereum’s decentralized ethos and bolsters the network’s resilience against single points of failure, benefiting solo stakers, staking pools, and staking service providers alike. By allowing multiple independent operators to run a validator collaboratively, ssv.network redefines Ethereum staking, bringing a new level of security and fault tolerance essential for the expanding DeFi ecosystem.

Source: ssv.network

Network Structure

The ssv.network ecosystem operates through a structured network of three key participants: stakers, operators, and DAO members, each playing a distinct role in maintaining and advancing the network. This structure enables a decentralized, resilient, and community-driven platform that enhances Ethereum staking security and performance.

Stakers are individuals or services—ranging from staking pools and providers to solo ETH holders—who contribute ETH to activate and operate validators on the Ethereum beacon chain. By leveraging ssv.network’s Distributed Validator Technology (DVT), stakers benefit from optimal security, liveness, and decentralization for their validators. Stakers pay a fee in SSV tokens to operators, compensating them for managing and maintaining their validator(s). The SSV network appeals to diverse users, from large-scale staking services to individual ETH holders seeking reliable, decentralized solutions, and it provides a robust infrastructure that minimizes single points of failure and maximizes validator uptime.

Operators are the backbone of ssv.network, providing the hardware infrastructure necessary to run the SSV protocol and oversee validator operations. These operators maintain the network’s health by running validator nodes on behalf of stakers, ensuring that the validators perform as expected without risking downtime or slashing. Operators determine their fees in SSV tokens and are compensated by stakers for their services. The network’s decentralized design allows operators to manage validators across multiple nodes, thereby enhancing the network’s resilience. This multi-operator setup ensures continuous availability, as validators remain operational even if some nodes experience issues, offering a highly fault-tolerant staking environment for Ethereum.

The DAO (Decentralized Autonomous Organization) is the governance core of ssv.network, controlling protocol ownership and overseeing treasury management. Governed by the native SSV token, the DAO empowers token holders to participate directly in decision-making processes. DAO members exercise their governance rights in two primary ways: through governance functions managed by a multi-signature wallet and by voting on snapshot proposals executed by various appointed working groups within the DAO. This decentralized governance structure gives SSV token holders a direct role in protocol updates, development funding, and community initiatives, ensuring that the network remains aligned with the interests of its community.

Source: ssv.network

These three actors create a balanced, decentralized ecosystem within ssv.network. Each group’s contributions uphold the network’s mission to make Ethereum staking more secure, decentralized, and fault-tolerant, benefiting individual participants and the Ethereum blockchain. This carefully structured framework supports ssv.network’s long-term vision of decentralized staking, where security, community involvement, and operational resilience are foundational principles.

ssv.network Use Cases

ssv.network offers innovative use cases in the Ethereum staking ecosystem, enhancing security, decentralization, and flexibility for validators. By leveraging Distributed Validator Technology (DVT), ssv.network addresses critical challenges in Ethereum staking and opens up new possibilities for a wide range of users. Here are three primary use cases:

• Solo Stakers: Individual ETH holders looking to stake on Ethereum often face the challenge of maintaining validator uptime and avoiding penalties for downtime. ssv.network enables solo stakers to distribute their validator duties across multiple nodes, improving uptime, fault tolerance, and security without the need for centralized intermediaries. This setup ensures that validators remain active even during node maintenance or unexpected downtime.
• Staking Services and Pools: Staking service providers and pools benefit from ssv.network’s decentralized infrastructure by distributing validator tasks across a network of non-trusting operators. This setup enhances the resilience of staking services, reduces the risk of single points of failure, and provides a more robust staking experience for clients. Additionally, the multi-operator model allows staking pools to offer decentralized services, appealing to users who prioritize security and decentralization.
• DAO and Governance Integration: ssv.network’s DAO-driven governance model allows community members to participate actively in decision-making, such as protocol updates, funding allocations, and operator management. This decentralized governance structure empowers SSV token holders to shape the network’s development, ensuring that the platform remains community-aligned, adaptable, and sustainable as Ethereum staking continues to evolve.

ssv.network Main Features

ssv.network offers a robust Ethereum staking platform designed to simplify validator setup, enhance security, and promote decentralization. With an open-source, community-owned model, the network provides a flexible, fault-tolerant staking solution ideal for both individual stakers and large staking services. This approach enables easy validator management, allowing stakers to participate in Ethereum staking without complex hardware or extensive coordination, making decentralized staking more accessible.

Easy Setup and Fault Tolerance

One of ssv.network’s core strengths is its streamlined setup, allowing stakers to operate validators with minimal technical barriers. Users can establish a validator by simply interacting with a smart contract without needing dedicated hardware or extensive configuration. Each validator is split between multiple independent operators, creating a fault-tolerant and decentralized environment. This redundancy ensures that if one operator experiences downtime, the validator remains operational, preventing slashing penalties and maximizing uptime. The decentralized nature of these validators fosters a resilient staking ecosystem, securing the Ethereum network with reliable, distributed nodes.

Source: ssv.network

Cluster-Based Management

ssv.network organizes validators into clusters, groups of operators chosen by stakers to manage their validators. Each cluster has a unique account where stakers maintain an SSV token balance to pay operator and network fees. This balance, known as the Cluster Balance, is crucial for ongoing validator operations, as funds are automatically deducted to cover fees. If the cluster balance exceeds the minimum required collateral, it extends the validator’s Operational Runway, enabling uninterrupted service. Users can deposit additional funds to avoid liquidation or withdraw excess funds for efficient capital use, allowing flexible financial management within the staking framework.

Source: docs.ssv.network

DAO-Driven Governance

The ssv.network DAO manages protocol governance and treasury, with SSV token holders actively participating in key decisions. The DAO influences network fees, allocates grants, and controls critical parameters affecting staking operations through voting. For instance, the DAO sets the Network Fee (a fixed validator charge that funds the treasury) and oversees grants to support developer projects and ecosystem growth. Operators set their own fees, though the DAO enforces guardrails to prevent sudden price hikes, maintaining a balance between adaptability and stability. With a strong community focus, the DAO allows stakeholders to influence ssv.network’s direction, fostering a sustainable and competitive decentralized staking platform.

What is the SSV Coin?

SSV is ssv.network’s governance token, enabling voting and payment for staking services. Its total supply counts 11.84 million units, of which 11.56 million are already in circulation (November 2024).

As a payment method, SSV enables stakers to compensate operators for maintaining and managing their Ethereum validators. Each operator can set its fee, fostering a competitive environment where stakers can choose operators based on performance and cost. Payments are made per-block basis, ensuring continuous compensation for operators’ services.

Source: docs.ssv.network

Governance-wise, SSV empowers holders to participate in key network decisions, from protocol updates to treasury allocations. This decentralized governance model allows SSV token holders to influence the development and growth of the ssv.network ecosystem. Funds collected through network fees flow into the DAO treasury, which supports development initiatives, grants, and ecosystem expansion efforts. By increasing the treasury’s resources, the DAO can expedite projects that enhance network functionality and attract new users.
The SSV governance proposal mechanism is a structured process enabling community members to suggest, discuss, and vote on ideas for network improvement. It begins with an open forum discussion, where ideas are vetted by community input. Once a proposal gains enough support, it’s drafted per DAO guidelines and submitted. Voting is conducted via Snapshot, with SSV token holders determining the proposal’s fate based on their voting power. Approved proposals reach the implementation phase, where the Multi-Sig Committee, elected by the DAO, oversees execution and may utilize the DAO’s Treasury if necessary.

Ultimately, SSV aligns with ssv.network’s mission to decentralize Ethereum staking, incentivizing operators, empowering community governance, and building a sustainable financial model for future growth.

Is SSV a Good Investment?

SSV is a technology-focused project that uses Distributed Validator Technology (DVT) to decentralize Ethereum staking. By distributing validator operations across multiple non-trusting nodes, it aims to improve fault tolerance and reduce risks of downtime, making it appealing to those interested in enhanced security for staking. The network’s open-source, community-driven model adds to its appeal, allowing for active governance through its DAO structure.

However, as a relatively new project, SSV’s success will depend on wider adoption and sustained interest in Ethereum staking, and its token value may face volatility.

How to Own SSV?

To own SSV, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then, you are ready to go through the steps to buy SSV.

News on ssv.network

On October 10, 2024, the official SSV Network blog announced a new “Learn & Earn” campaign celebrating the launch of Lido’s Simple DVT module on the Ethereum mainnet. SSV DAO offers a 16,640 $LDO prize pool for participants who learn about Distributed Validator Technology (DVT) and the Decentralized Validator Vault. The collaboration marks a major milestone for SSV and Lido, promoting decentralized staking by expanding Lido’s node operator count and enhancing fault tolerance. Interested users can participate on Galxe to get a chance to win.

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