SSV Network, a business that specializes in distributed validator technology (DVT), recently achieved a significant milestone for blockchain security with the successful completion of its Simple DVT Holesky Testnet. The project was carried out together with Lido Finance (a DeFi protocol) and its staking community to demonstrate how powerful DVTs can be for securing the blockchain.
Lido Finance Sees Promise in SSV Network’s DVT Technology
DVT technology is a new way of securing validators by distributing key management and signing duties among many different parties. This creative model guarantees resilience in the network by dividing the private keys of a validator into different computer clusters.
Such an arrangement greatly complicates matters for potential hackers because they would need to compromise each cluster individually before being able to obtain any private key. DVT also ensures network resilience through allowing certain nodes to go offline without affecting the overall validator; only some machines within a cluster are required to sign keys.
The Simple DVT Holesky Testnet was successful in proving that DVT can significantly enhance security on blockchains. The results were beyond what Lido’s Node Operator Subgovernance Group (LNOSG) expected, thus demonstrating how strong SSV Network’s offering is.
Lido Finance, which offers liquid staking services for proof-of-stake (PoS) blockchains, recognizes the potential of SSV Network. With Lido, users can stake any amount of cryptocurrency thereby lowering entry barriers and increasing participation in blockchain networks. Therefore, there is great promise for future collaborations between SSV Network and Lido Finance regarding blockchain security as well as decentralized finance (DeFi).
SSV Network and Lido Finance Drive Innovation in Blockchain Security
In 2020 Lido Finance established LNOSG whose role is to assess node operators’ suitability within the protocol so as to secure it and make it more decentralized. Through LNOSG’s evaluation process it became clear that SSV Network could help expand lidos validator base while at the same time improving network accessibility through increased participation. The success recorded during Simple DVT Holesky Testnet has opened doors for further cooperation between SSV Network and Lido Finance.
SSV Network together with Lido Finance plan to improve network support structures as well as tools aimed at ensuring optimal performance and resilience. Furthermore, testnets will be conducted in order to address any remaining challenges. However, it will also continue with validation of DVT technology capabilities. The success achieved through the partnership between SSV Network and Lido Finance indicates a huge leap towards blockchain security and decentralized finance solutions.