Right from the beginning of 2023, SSV.Network has shot up by almost 340%. In this rally, the peak has come at $49.15, which was on February 28th.
In light of these developments, SSV.Network has now made it to the top 100 cryptocurrencies by market cap. In this article, we come to know more about the SSV.Network and the reasons that stand behind its progress.
In terms of cryptocurrencies, for 2023, it is a noteworthy development that there are several projects that have demonstrated all-time highs and remarkable growth. SSV is the latest in the list to win the accolades. SSV is SSV.Network’s native cryptocurrency.
But, SSV is still a token that is relatively unheard of. Let’s know more about the same.
Before getting to know more about SSV.Network, it becomes important to understand the issues that exist with staking directly on Etherium. The entry barrier has to be understood first of all. If a staker has to initiate staking, he has to first of all lock up at least 32ETH.
Setting up and running a validator mode also becomes a must for the same. But, while being a technical process, this is a time-consuming process as well.
There are cases wherein even though a staker holds the technical expertise for setting up the node, he is required to ensure that he is online at all times. To receive staking rewards, he has to sign transactions every 6.4 minutes.
If it so happens that the validator node is offline; a staker misses out on staking rewards. In a worse case scenario, his staked ETH may be slashed as a penalty.
Nevertheless, in SSV.Network, a solution has been offered for these issues. Herein, SSV.Network’s unique Distributor Validator Technology (DVT) drives the staking pools.
Correspondingly, the validator’s duties are split among different distributed nodes. Further, it is into “KeyShares” that validator nodes are split into. But it is no lesser than 4 distributed nodes that these KeyShares are distributed to. While this keeps the participation to the higher side, downtimes are also lower. Overall, setting up the validator node is hassle free. This empowers more people to participate in the Etherium consensus mechanisms.
Now suppose that even a single KeyShare has gone offline. The others will still keep conducting the duties of the validator mode.
This way, validation process becomes decentralized to a greater extent. With the number of participants being more, fault tolerance is also more.
So, even if faulty modes or rogue modes exist, effect on validation process will be null or negligible. Chances of attack are also reduced by 51% because if the miscreants intend to influence the work, they will be required to significantly large number of KeyShares.
Furthermore, the odds of staked ETH or lost staking rewards being slashed also become higher. This is the sole reason why Vitalik Buterin, who is also the Etherium co founder proposed and endorsed the DVT technology. This was at the time when he explained the Etherium 2.0 design.
Secret Shared Validators or SSV is the Distributed Validator Technology that the network. This is what the network has derived its name from.
It becomes easy to see that it is on 3 main participants that the entire SSV network depends for making things work. The first among them is the operator. The operator runs the KeyShares of the validator nodes and conducts the different duties of PoS consensus mechanism. For their services, operators fix an annual fee.
The next most important concerned entity is the staker. When they lock up their ETH with operators, these individuals earn rewards. All stakers need to select at least 4 operators that they want to endorse. Next, the stakers will give their KeyShares to the operators. In turn, the operators go ahead with the validation process.
But, for the services that they receive, stakers need to pay a pre-defined fee as well.
The last among the list are DAO members. By voting on network proposals, DAO members decide on the network’s future.
Now, the role of SSV becomes important. SSV is the network’s native cryptocurrency which is also used for paying operator fees. If one is a SSV holder, he can participate in the DAO. Over different network proposals, the weightage of their votes will be defined by the number of tokens that they hold.
A certain fee is charged by the network as well, from the stakers and operators for the services provided. This too is paid in SSV.
What makes SSV rally?
Several factors can explain the recent price hike of SSVs. Firstly Ethereum’s Shangai Update is closing in fast. This derives the usage and popularity of staking services.
So, as we move ahead, SSV could be a major partner that renders backup services for these staking platforms. This helps with the decentralization and optimization of validation processes.
Aside future utility of DVT and Shanghai Update, SSV DAO has also set up a $50 investment fund on Jan 19. By setting up this fund, support for upcoming projects is simplified. These projects will be involved with creating distributed validator systems.
The fund has come across contributions for manu noteworthy investors, including Digital Currency Group, Everstake, Coinbase Ventures, and GSR.
The future outlook for SSV seems fine, with even more investors expected to initiate ETH staking upon the release of the Shanghai Update. The moving averages of the token indicate a strong buy. This indicates even more gains in the weeks and days to come.
It is expected that SSV.Network will bring in a new era of ETH staking across the weeks and months to come. This is a fresh approach to run a validator node. The attention being garnered on the behalf of cryptoverse is remarkable. The price of SSV token is correspondingly scaling an unprecedented high.
SSV is characterized by its bullish technical indicators and unique service offerings. It is likely to come across additional gains in the days to come.
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