Table of Contents
Key Takeaways
- Kraken becomes the first major exchange to deploy DVT at scale.
- SSV Network’s design boosts uptime and7 reduces slashing penalties.
- Move expected to strengthen Ethereum’s overall staking security.
Kraken Deploys Distributed Validator Tech for ETH Staking
So as to improve Ethereum staking, Kraken has announced that distributed validator technology (DVT) is live and fully deployedz in its staking infrastructure powered by the SSV Network. With this step, Kraken becomes the first significant crypto exchange to open a practical DVT with the goal of bettering the uptime of the validator and decreasing the potential of lessening of the stake.
Through DVT a validator key can be divided securely into a certain number of “shares,” each of which is managed separately by several operators. These operators who must jointly authorize the activities executed mean that there is no one single party who fully controls the key. The way it is done adds fault tolerance, location diversity, and client diversity to staking operations among others.
Kraken’s head3 of strategy, custody, and staking, Jonathan Marcus, said that the release “deeply improved our ETH validators’ performance reliability.”
SSV Network Enhances Validator Safety
SSV Network, a decentralised protocol, is designed specifically for the distributed validator technology (DVT) implementation. By distributing the responsibilities of the validator among the multiple independent7 operators, the risk of failure in a correlated manner or the occurrence of penalties due to a halt is mitigated to a great extent.
Validator slashing, a punishment given when nodes perform maliciously or become inactive, continues to be one of the greatest5 concerns for exchanges and custodians who manage large staking operations. The implementation of DVT at Kraken is a great relief as it gives a new horizon of tenacity that helps in customer fund security and strengthens Ethereum’s proof-of-stake system.
Alon Muroch, the founder of SSV Labs, stated that his protocol is safeguarding over $18 billion of staked assets across the 126,000 plus validators it is spread over and is very much happy with Kraken’s decision calling it a next phase of institutional-grade staking.
Beyond staking, Kraken is expanding into tokenized assets with “xStocks,” equity-backed tokens for select non-U.S. markets. The exchange also plans to support token issuance on additional blockchains, including Tron.
Summary
Kraken’s deployment of SSV Network’s distributed validator technology marks a significant step in Ethereum staking innovation. By cutting slashing risk and boosting uptime, the exchange not only improves its own infrastructure but also helps strengthen the resilience of Ethereum’s broader network.
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