ssv.network, an infrastructure provider, announced the launch of a new ecosystem to aid Ethereum proof-of-stake. According to the company, this will encourage innovation in Ether (ETH staking) technology. On January 19, the business announced the creation of the ecosystem fund. It has a total value of fifty million dollars. This fund will support companies that create apps using distributed validator technology (or DVT).
The fund was created to finance DVT use cases that support Ethereum’s long-term efforts to decentralize.
DVT is an open-source protocol that allows you to distribute the tasks of validators over many nodes.
Vitalik Buterin, Ethereum’s co-founder, created the protocol because more DVT implementation leads to increased decentralization.
SSV was made aware of the fact that many venture capital investors including Digital Currency Group, HashKey and Everstake, GSR and SevenX have supported Ethereum’s use DVT.
SSV stated that it had contributed $3 million to developer awards and that $1.2million had been distributed in proof-of-stake to more than 20 projects. Blockscape, ANKR and Moonstake are just a few of the projects.
Alon Muroch (SSV’s core development lead), claims that Ethereum is being protected by just a few corporations. They control the entire blockchain when you combine all these companies.
He stated that the DVT technology’s objective is to “share Ethereum’s security, enabling rapid access to an open-source public good that will revolutionise how staking is done today.”
The transition from proof-of work to proof-of stake on Ethereum will occur in stages. Each stage will improve the scalability and security of the network and decentralisation.
This led to the creation of ETH staking. Users take part in the validation and verification of transactions.
The minimum stake amount for Ethereum is 32.
Recent reports indicate that liquid ETH staking is on the rise as of December 1.
Nansen’s blockchain analytics company Nansen called Staked ETH the “first yield bearing instrument to reach significant size in the DeFi”.