The SSV DAO, the decentralized autonomous organization behind the decentralized staking protocol SSV Network, recently unveiled a groundbreaking new framework known as ‘SSV 2.0.’ This innovative initiative aims to enable applications to utilize ‘based’ technology by harnessing the power of Ethereum validators.
According to a press release shared with CoinDesk, SSV 2.0 represents the most ambitious project to date for the SSV Network, paving the way for the development and deployment of ‘based applications’ (bApps) on the Ethereum blockchain.
‘Based’ applications, particularly ‘based rollups,’ are emerging as a transformative technology attracting the attention of Ethereum developers. These applications offer enhanced interoperability and bolster the security of networks built atop the Ethereum ecosystem.
Based rollups specifically address the challenges posed by the numerous layer-2 networks currently in operation on Ethereum, which have led to fragmentation within the space. By leveraging ‘based’ technology, these protocols are able to derive their security and execution capabilities from Ethereum’s layer-1 validator set, thereby mitigating the risks associated with fragmentation.
Currently, layer-2 networks deploy ‘sequencers’ to arrange transactions and subsequently post these back to Ethereum. However, the issue with sequencers lies in their centralization, leading to potential vulnerabilities and a single point of failure. The SSV Network’s focus on enabling layer-1 validators to handle execution and security processes presents a robust alternative to the centralized sequencer model.
Moreover, Ethereum developers have indicated that based rollups can foster better interoperability within the network. In recent weeks, members of the Ethereum ecosystem have convened to address these challenges, and based rollups are regarded as a significant advancement that could offer solutions.
SSV Network is poised to tackle these existing issues by introducing bApps that leverage ‘based’ technology directly onto Ethereum. The SSV team asserts that these applications will ‘securely anchor’ their operations to layer-1, as opposed to employing diverse tokens commonly utilized in current restaking models. This approach not only aligns more closely with Ethereum’s foundational principles but also mitigates the cascading risks that could potentially jeopardize Ethereum and its validators.
In line with this vision, the DAO proposes to transform the SSV Network into a bApp. The SSV team noted, ‘Transforming the SSV Network from a DVT-powered staking infrastructure into a multidimensional network for the based economy will necessitate an evolution of SSV tokenomics.’ Here, DVT refers to the distributed validator technology that permits an Ethereum validator to operate across multiple nodes simultaneously.
This announcement marks a significant leap forward in enhancing the security of Ethereum. It addresses the escalating demand for Layer 1 (L1)-anchored interoperable solutions—an urgent need underscored by the challenges of base sequencing and based validator commitments amid the backdrop of growing ecosystem fragmentation.
To learn more about this promising development, read the full press release: SSV DAO Starts $50M Fund to Push Ethereum’s Decentralization Plan.
