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Ethereum's shift to the proof of stake system post-merge held promises of easier earnings through staking rather than mining. In reality, staking on Ethereum still poses a difficult way to earn for most. SSV Network provides an easy way for stakers to earn ETH while helping to scale Ethereum. By fully decentralizing validation and replacing a single validator with multiple independent operators all over the globe, SSV Network is single-handedly changing the Ethereum landscape by making failed node validations much less probable.
Since Ethereum made the transition from proof of work (PoW) to the proof of stake (PoS) consensus model in 2022, validators can stake ETH to help secure the network. Stakers are required to stake 32 ETH to run a node as a validator. A staker also needs to run their validator client software alongside Beacon Chain and legacy nodes, which is a complicated process that requires technical expertise.
A validator will then produce a validator key that needs to be constantly online to perform duties such as signing transactions every 6.4 minutes in order to earn rewards. If a validator goes offline for a short time, the staker will miss the chance to earn their ETH. And in the worst cases, if their validator is offline for a long time or is stored wrongly or even gets hacked, the staker will be slashed and their staked ETH will be drained till they are eventually forced off the network.
ssv.network, also known as SSV Network, is a decentralized layer 0 staking infrastructure between a Beacon Chain node and a validator client. It utilizes Distributed Validator Technology (DVT), also called Secret Shared Validators (SSV), to split and run Ethereum validators between several different non-trusting nodes.
With SSV Network, Ethereum validator keys are split into what they call KeyShares. The KeyShares are then distributed to multiple nodes, dividing the responsibility of keeping keys online, resulting in more participants and better uptime. As the keys can be created and stored offline, this also leads to improved security.
This can all seem a bit complex, so let’s break down the process a bit further.
As mentioned above, SSV Network is a purpose-built staking infrastructure designed to allow for the distributed operation of Ethereum validators. To achieve this, the network splits each validator key between no fewer than four non-trusting nodes.
As their name suggests, non-trusting nodes do not need to trust other nodes for successful operation. This means network performance cannot be affected by a faulty node as there is no single point of failure. Working collectively, each node executes validation duties using a consensus mechanism and is governed via a consensus layer.
This addresses the issue of centralization with validator keys and increases fault tolerance across the Ethereum ecosystem, representing a considerable leap forward from existing staking schemes. If one validator key is faulty or goes down, the other three can still operate the node, resulting in a more reliable and less centralized Ethereum network.
Staking services, staking pools, solo stakers and institutional stakers can all benefit from this decentralized infrastructure.
SSV network has three main participants that make all of this work: operators, stakers and decentralized autonomous organization (DAO) members.
Operators are responsible for managing validators and performing a variety of duties on Ethereum’s PoS execution layer, known as the Beacon Chain. The operators fix their annual operator fees in SSV tokens.
Stakers earn rewards by locking up their ETH with the operators who then help to secure the Ethereum network. Stakers have to choose at least four preferred operators and distribute their validator KeyShares to them and pay them an annual fee. Besides operator fees, stakers are also subject to network fees determined by the DAO.
Meanwhile, DAO members help govern the network and maintain decentralization of ownership of the protocol and treasury. Anyone who holds an SSV token can participate in the DAO and vote on major decisions concerning SSV Network.
The SSV token (SSV) is a native token required to use the SSV Network protocol. The SSV token is deeply intertwined with the network’s protocol and plays a critical role in the protocol’s adoption and success.
The token can be used for governance and paying network and operator fees. In terms of governance, SSV is used by the community to vote and exert influence on the protocol, the treasury and the ecosystem as a whole.
As mentioned previously, operators get to set their own fees and receive a yearly payment from stakers in SSV. A portion of the fees collected by the operators is then distributed to the DAO treasury. As more ETH is staked in SSV Network, both the operators and DAO treasury will receive more fees, resulting in positive growth for the protocol.
The SSV Network price has seen favorable gains over the past month alone, almost doubling from $9.87 on Jan 1, 2023 to $19.46 on Jan 31. Its price increase is greater than that of Ether (ETH), which saw a rise of approximately 30%, and Bitcoin (BTC) which rose by around 37% over the same time period. In fact, it has outperformed BTC, ETH and nearly every other top crypto asset.
Since it entered the market on Oct 19, 2021, the SSV token rapidly reached its highest price at $28.68 a few days later on Oct 22. The price jump proved to be a brief spike as SSV almost instantly cycled lower all the way down to $7.83 on Nov 1, 2021 and sank to its all-time low at $3.67 by Jun 19, 2022. In just half a year, though, it is clear that the SSV price has rebounded with its increase of over 400 percent in the past year.
SSV Network's market cap is also trending upward alongside its price and has seen incredible growth from $0 in May 2022 to $136.56 million today (as of Jan 31, 2023).
Based on its rising price and market cap over the recent months, many price analysts hold a positive outlook for this token as a long-term investment. Price Prediction expects it to exceed $50 at the very minimum in 2026 and possibly reach a maximum of $72.75. And by 2030, the SSV Network price could even hit $328.37. Digital Coin Price forecasts a short burst of growth for the token, predicting it to be valued at $83.45by 2026, though its growth is expected to be slower by 2030, reaching only $191.92.
The SSV Network token is undoubtedly a good investment as it brings bountiful benefits to the second biggest crypto by market cap, Ethereum. It not only benefits both stakers and operators, it even strengthens Ethereum due to its fully decentralized validation activities. Its partnership with Ankr and other Ethereum staking services further highlights an increasing demand for SSV Network’s services.
The fact of the matter is that very few staking protocols are positioned as well as SSV Network to facilitate the development of Ethereum staking technology. Furthermore, the use of SSV Network’s proprietary DVT protocol and ecosystem is helping Ethereum enhance its decentralization and prevent downtime that could hurt network operations.
In other words, SSV network is fueling Ethereum’s continued growth and development, making it a very good investment in the eyes of many industry experts and insiders. That said, you must always do your own research before deciding to invest in any altcoin, as they are highly volatile assets.
If you are interested in buying SSV, the token can be bought on popular decentralized exchanges, like Uniswap v3 and SushiSwap. It can also be purchased on top centralized exchanges, such as Bybit. When you sign up on Bybit, you can buy SSV tokens as a Spot pair (SSV/USDT).
You can sign up for Bybit via email or your mobile device. To sign up by email, simply enter your email address, a password and an optional referral code. Follow through with the necessary verification requirements, including entering a verification code sent to your email address.
Signing up for an account via mobile is equally quick and simple. However, instead of entering an email address, you will need to enter your mobile number.
Once you have successfully created your Bybit account, you can fund the account with USDT and trade it for SSV.
Interest in SSV Network (SSV) has been on the rise, and justifiably so. The protocol’s ability to simplify and decentralize ETH staking simultaneously would help propel it and Ethereum forward together. Despite its relatively short history, price growth of the SSV token is already outperforming that of BTC, ETH and nearly every other major coin on the market today. The future definitely looks bright for SSV Network both tomorrow and in the years ahead.