Ethereum's transition to proof-of-stake - Blockchain.News

Ethereum's transition to proof-of-stake

Rebeca Moen Jan 19, 2023 09:37 created a $50 million fund to encourage Ether (ETH) staking technology research. DVT, an open-source protocol, distributes validator duties over numerous nodes. Vitalik Buterin's Eth2 roadmap relied on the protocol.

Ethereum's transition to proof-of-stake, a provider of validator infrastructure, has announced the introduction of a new ecosystem fund to assist Ethereum proof-of-stake decentralisation. The business said that this step will foster innovation around Ether (ETH) staking technology. The business made the announcement on January 19 about the ecosystem fund, which has a value of fifty million dollars and would help companies creating apps employing distributed validator technology, or DVT.

The primary purpose of the fund is to provide financial support for DVT use cases that contribute to Ethereum's efforts to decentralise the platform over the long run.

DVT is a protocol that is open-source and has the capability of distributing the tasks of a validator over a number of different nodes.

Because more DVT implementation results in increased decentralisation, the protocol was an essential part of the roadmap that Ethereum co-founder Vitalik Buterin developed for Eth2.

SSV made notice of the fact that a number of venture capital investors, including as Digital Currency Group, HashKey, NGC, Everstake, GSR, and SevenX, have advocated for Ethereum's use of DVT.

SSV said that it had already contributed $3 million toward developer awards and that $1.2 million had been distributed to over 20 proof-of-stake projects. Some of these projects include Blockscape, ANKR, and Moonstake.

"Ethereum is now protected by a tiny set of corporations," claims Alon Muroch, the core development lead at SSV. "When you bring all of these companies together, they control the whole blockchain."

According to what he stated, the objective of the DVT technology is "to share Ethereum's security by enabling rapid and simple access to an open-source, public good that will totally revolutionise the way that staking is done today."

The switch from proof-of-work to proof-of-stake on Ethereum will take place in stages, and each one will be intended to improve the scalability, security, and decentralisation of the network.

The change led to the implementation of ETH staking, in which users take an active role in the validation of transactions.

On Ethereum, the minimum amount of ETH that must be staked in order to qualify as a validator is 32.

According to recent reports, the demand for liquid ETH staking was reportedly on the increase as of the beginning of December.

Staked ETH was characterised to as the "first yield-bearing instrument to attain considerable size in DeFi" by the blockchain analytics company Nansen.

Image source: Shutterstock