SSV Network, a company specializing in distributed validator technology (DVT), has reached a significant milestone in blockchain security with the successful completion of its Simple DVT Holesky Testnet. This project was carried out in collaboration with Lido Finance, a DeFi protocol, and its staking community to showcase the power of DVTs in securing the blockchain.
DVT technology offers a novel approach to securing validators by distributing key management and signing responsibilities among multiple parties. This innovative model ensures network resilience by dividing a validator’s private keys into different computer clusters.
This arrangement presents a major obstacle for potential hackers, as they would need to compromise each cluster individually in order to obtain any private key. Additionally, DVT allows certain nodes to go offline without impacting the overall validator; only a few machines within a cluster are required to sign keys.
The successful Simple DVT Holesky Testnet has demonstrated that DVT can significantly enhance blockchain security. The results exceeded the expectations of Lido Finance’s Node Operator Subgovernance Group (LNOSG), highlighting the strength of SSV Network’s offering.
Lido Finance, known for its liquid staking services for proof-of-stake (PoS) blockchains, recognizes the potential of SSV Network. Through Lido, users can stake any amount of cryptocurrency, reducing barriers to entry and increasing participation in blockchain networks. This opens up exciting possibilities for future collaborations between SSV Network and Lido Finance in the realms of blockchain security and decentralized finance (DeFi).
In 2020, Lido Finance established LNOSG to assess the suitability of node operators within the protocol, ensuring its security and decentralization. Through LNOSG’s evaluation process, it became clear that SSV Network could help expand Lido’s validator base while improving network accessibility through increased participation. The success of the Simple DVT Holesky Testnet has set the stage for further cooperation between SSV Network and Lido Finance.
SSV Network and Lido Finance have plans to enhance network support structures and tools to optimize performance and resilience. They will also conduct additional testnets to address any remaining challenges and further validate the capabilities of DVT technology. The partnership between SSV Network and Lido Finance marks a significant leap forward in blockchain security and decentralized finance solutions.