The ssv.network has finally announced the launch of its mainnet, bringing a decentralized Ethereum (ETH) staking infrastructure to the Ethereum network. The launch follows more than two years of testing and fine-tuning, and the network is poised to revolutionize the staking industry.
The decentralized infrastructure of the SSV network
ssv.network’s mainnet rollout plan includes four phases, each with its own goals and stipulations. The first phase, which will begin in early Q2 2023, will ensure that all mainnet parameters are properly configured.
The second phase introduces a complete set of verified operators, while the third phase introduces builders using the ssv.network infrastructure. Finally, the fourth phase is the permissionless launch, inviting anyone to use the open protocol to build or stake.
According to the announcement, the phased approach to the rollout is necessary to ensure that all the different actors and stakeholders in the network are aligned. But what are the benefits of this for the future of ETH staking?
- Decentralization: The ssv.network is a decentralized and permissionless network that adheres to the core principles of Ethereum. By embracing this vision, the network aims to strengthen Ethereum’s resilience and empower the community to shape the future of staking.
- Fault Tolerance: The ssv.network is built to address fundamental Ethereum validator challenges, including fault tolerance. The network is designed to be resilient and able to handle outages in a decentralized manner.
- Security: The ssv.network is designed to be secure, with multiple layers of security protocols to ensure the network is protected from attacks.
- Zero coordination: The ssv.network is designed as a zero coordination network, which means that validators do not need to coordinate to validate blocks. Instead, the network uses a mesh-like structure that allows validators to independently validate blocks.
Using ssv.network to stake ETH provides a secure, resilient, and decentralized way to participate in the Ethereum network. The network’s focus on fault tolerance, security, zero coordination, diversity, and its self-sustaining ecosystem make it an attractive option for anyone looking to deploy ETH in the future.
Shanghai Hardfork is boosting ETH deposits
The recent implementation of the Shanghai hard fork has resulted in an increase in Ethereum staking deposits, according to to analytics company Glassnode.
The hard fork, triggered on June 2, introduced several changes to the Ethereum network, including updates to the gas fee structure and EIP-1559. This new transaction fee mechanism aims to improve the user experience by reducing transaction costs and improving predictability.
Glassnode data shows that ETH staking deposit activity peaked on June 2, with over 13,595 new deposits worth over 408,000 ETH.
This increase in staking deposits suggests that investors and users are gaining confidence in Ethereum’s flexibility after the implementation of the hard fork. Staking allows users to earn rewards by holding and validating transactions on the network, and the recent increase in deposits indicates that more users are becoming interested in this process of participating in the network and earning passive income.
Unlike strike deposits, ETH exchange deposit transactions remained flat at around 30,000 over the same period. This suggests that investors and users are choosing to hold and stake their ETH rather than trading or selling it on exchanges.
This is a positive sign for the Ethereum network, as staking offers a more stable and secure way to participate, compared to trading on exchanges, which can be subject to market volatility.
At the time of writing, ETH is trading at USD 1,948, and it is struggling to break the upper USD 1,990 resistance level. In the past 24 hours, the cryptocurrency market has experienced a pullback and ETH is down 0.8%.
Featured image of Unsplash, chart from TradingView.com