What is ssv.network (SSV)?

Secret Shared Validators (SSV) is a unique protocol built on the ssv.network platform. Its fundamental purpose is to enable the distributed operation of an Ethereum validator, allowing an Ethereum validator private key to be encrypted, split, and distributed amongst different, non-trusting nodes or operators. This innovative approach means that even if a portion of these nodes go offline, network performance isn't affected, and no operator can take full control of the network unilaterally. It ensures decentralization, fault tolerance, and optimal security for staking on Ethereum.

Who created ssv.network (SSV)?

The concept of SSV was initially proposed in 2019 by Ethereum Foundation researchers Aditya Asgaonkar and Carl Beekhuizen in an academic paper. Over time, the research group expanded to include contributions from other key figures such as EF researcher Dankrad Feist, Collin Myers from Consensus, and Mara Schmiedt from Coinbase. Later, Blox Staking joined the project and received a staking community grant from the Ethereum Foundation to develop the first audited SSV configuration. Blox Staking leads the development efforts, alongside many community contributions and open public testnets. The Blox (CDT) founders, Alon Muroch and Adam E, played a significant role in this development and were part of the rebranding from Blox (CDT) to ssv.network (SSV) in 2021.

What is $SSV used for?

$SSV is the native token of the ssv.network. Its primary function is as a payment mechanism within the network, aligning the interests of all network participants. The tokens are used by stakers to pay fees to the operators they select to manage their validators and to the DAO for network access. This payment structure encourages a 'free market' of staking providers, allowing stakers to optimize their costs by choosing their preferred operators based on factors such as performance rating, verified status, client diversity, network effect, and price. Furthermore, stakers must maintain a minimum balance of $SSV tokens as collateral to prevent potential liquidation, thereby ensuring the solvency of the network. Operators, in turn, receive $SSV tokens from stakers for managing their validators and generating Ethereum (ETH) rewards on their behalf. This system promotes transparency and competition amongst operators while offering stakers enhanced security and reliability.