SSV Network, a company specializing in distributed validator technology (DVT), recently achieved a major milestone in blockchain security with the successful completion of its Simple DVT Holesky Testnet. This project was conducted in collaboration with Lido Finance, a decentralized finance (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 the private keys of a validator into different computer clusters.
By doing so, potential hackers face significant challenges as they would need to compromise each cluster separately in order to obtain any private key. DVT also ensures network resilience by allowing certain nodes to go offline without affecting the overall validator; only a few machines within a cluster are required to sign keys.
The successful Simple DVT Holesky Testnet demonstrated the significant enhancement in blockchain security that DVT can provide. The results surpassed the expectations of Lido’s Node Operator Subgovernance Group (LNOSG), highlighting the strength of SSV Network’s offering.
Lido Finance, which offers liquid staking services for proof-of-stake (PoS) blockchains, recognizes the potential of SSV Network’s technology. Through Lido, users can stake any amount of cryptocurrency, reducing entry barriers and increasing participation in blockchain networks. This paves the way for future collaborations between SSV Network and Lido Finance in the areas of blockchain security and decentralized finance.
In 2020, Lido Finance established LNOSG to assess the suitability of node operators within the protocol, ensuring security and decentralization. During the 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 opened up opportunities 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. Additionally, testnets will be conducted to address any remaining challenges and continue validating the capabilities of DVT technology. The successful partnership between SSV Network and Lido Finance represents a significant step towards blockchain security and decentralized finance solutions.
