The dawn supporting the LSD track? Understand DVT technology in three minutes

Original Title: 《Ethereum Roadmap: Distributed Validator Technology (DVT)》

Author: Tyrannosaurus Haym

Compiled by: Biteye Crush, Biteye FI?HΞRY Isla

Ethereum is built on a decentralized and resilient network of nodes, but a considerable number of nodes are centralized, making it relatively fragile at this stage.

This article will focus on DVT (Distributed Validator Technology), Obol Network, SSV Network, and the future roadmap for further decentralization of Ethereum.

(Currently, an Ethereum node is managed by a single computer that handles both the EVM execution layer and the PoS consensus layer, while a distributed "node" can consist of multiple servers.)

01 How Ethereum Nodes Operate

As is well known, Ethereum is hailed as the world computer, a network composed of nearly twenty thousand computers (nodes).

Each node is a real computer (server) in the real world, communicating directly in a peer-to-peer manner. The sole purpose of maintaining such a vast number of Ethereum servers is to provide a stable and reliable shared computing platform—the Ethereum Virtual Machine (EVM).

The EVM provides the backdrop for transactions (computations), and everything a user does on-chain occurs within the EVM.

Each node runs a local version of the EVM and completes on-chain processes through a mechanism called "Proof of Stake" (PoS), remaining fully synchronized with all other copies of the EVM.

Under this entire architecture, each Ethereum node currently runs two pieces of software simultaneously.

• Execution clients (e.g., @go_ethereum, @nethermindeth), responsible for implementing the EVM
• Consensus clients (e.g., @ethnimbus, @sigp_io), which monitor PoS and ensure the security of Ethereum

A node can exist without staking any $ETH; however, it is important to note that it will not earn any rewards, will not be responsible for on-chain processes, and will only synchronize network data.

When a node operator stakes 32 ETH, their node will create a new validator and begin participating in PoS.

(Translator's note: A single server can create multiple validators, depending on the server's performance configuration and how many ETH are staked.)

This can also be understood as:

• Multiple nodes form a real-world computer, with each node maintaining synchronization, keeping the Ethereum network continuously connected, and ensuring the EVM remains securely synchronized.
• A validator is a virtual entity operated by nodes, existing within node servers, participating in PoS.

It is evident that the entire network is resilient, with thousands to tens of thousands of nodes, and very few events can affect every node. Thus, today's Ethereum network has maintained a good operational record for a long time.

But what about individuals? For those controlling a massive Ethereum network, fault tolerance cannot be said to be perfect.

Let's take a simple example:

Suppose you are a home staker (setting up a server at home) and experience a power outage for several hours. During the downtime of your node, you will incur penalties (deducted from the equivalent amount you would have earned during that time). If you are offline for just a few hours, your node will resynchronize with the blockchain head relatively quickly. However, the longer you are offline, the longer it will take to resynchronize, with a complete resynchronization potentially taking several days.

During this time, you will be penalized. For a home staker, this is already bad enough, but imagine you are a large staking-as-a-service provider like Lido Finance or Coinbase; a data center outage or a poor configuration could impact the entire DeFi ecosystem.

At this point, someone might suggest running a backup node—if something happens to the primary node, you can load the private key onto the backup and continue validating. But with today's technology, this itself poses a risk.

(This user was penalized for double signing due to switching nodes to new hardware while the old hardware had not fully stopped.)

The Distributed Validator Technology (DVT) we are introducing today can perfectly avoid the aforementioned issues.

02 What is DVT Technology

In simple terms, a (regular) node can be viewed as one composed of consensus and EVM, while a DVT node consists of multiple consensus and execution clients distributed across multiple machines.

If 32 $ETH are deployed to the Ethereum deposit contract, it will form a DVT cluster composed of n members, simultaneously generating an m-of-n shared validator key (m < n), where at least m members must agree each time the validator key participates in PoS.

From a protocol perspective, the fundamental guarantee for the smooth operation of Ethereum is the responsibility of each validator to complete their verification in a timely manner during their designated rounds.

DVT is precisely a cryptographic technology that allows validators to exercise their signing responsibilities more stably and securely, distributing individual responsibilities safely among an m-of-n group.

Now, returning to the topic of home staking, with DVT, suppose you, I, and Vitalik establish a DVT cluster. We can also include Coinbase as a backup for emergencies.

For instance, even if my location in Singapore experiences a complete power outage, you in Dali and Vitalik in Canada still have power, and we can rest easy because we are still validating.

DVT provides Ethereum with the tools needed to continue decentralization, further solidifying its position as a trusted neutral settlement layer for the internet. And DVT is just a technology; we may see many different implementations of it.

03 Current Projects Using DVT Technology

Let’s take a look at two projects that use DVT.

Obol Network

Obol Network recently raised $12.5 million to implement their plans. In simple terms, a regular native node runs an execution and consensus client, while an Obol node adds a third-party client on top of this.

Currently, Obol Network has not yet launched, but users can get a good understanding of how DVT works through screenshots of their DVT launchpad (see below).

(Choose your cluster size, add operator addresses, select the number of validators, deploy.)

SSV Network

SSV has just announced a $50 million ecosystem fund (a significant event in the DVT space). SSV Network uses the same DVT technology concept, but the real highlight is its operator network.

Users interested in deploying validators will bring their ETH to SSV, which will create a DVT cluster from four operators.

This is just the beginning; DVT is not only about creating more stable Ethereum nodes, but its emergence can also clarify the separation of the concepts of nodes and validators, thereby defining their respective meanings.

The most intuitive example is reflected in Ethereum's next roadmap, where one of the core technologies required to achieve Danksharding is to run advanced elliptic curve cryptography on each block.

This may be computationally heavy for current Ethereum nodes, but it will be easier to implement using a DVT cluster.

For more on Danksharding, refer to:

https://inevitableeth.com/home/ethereum/upgrades/scaling/data

04 Airdrop Speculation (Translator's Note)

Obol launched the Bia testnet on January 31, aiming to test the scalability of Obol DVT, with expectations of seeing >500 active clusters, >5000 participants activated through the launchpad, and successfully running for >30 days.

• 01/30/2023 Bia testnet launched
• 01/30/2023 Cluster created
• 02/06/2023 Cluster activated
• 02/06/2023 → 03/31/2023 Running (at least 30 days)
• 03/31/2023 End
• 04/20/2023 Bia testnet report

For more on Danksharding, refer to:

Although the official documentation emphasizes that Bia is a non-incentivized testnet, meeting the requirements will reward a technical ambassador POAP, and whether there will be additional airdrop rewards for POAP is worth a shot.

POAP eligibility criteria are as follows:

• Cluster creation and successful distributed key generation ceremony (proven by submitting the cluster type table)
• Running an active cluster for over 30 days
• Becoming a leader of the cluster
• Running 3 different settings out of 4 cluster configurations: ≥6 nodes, multi-client, multi-geo, or multi-host (i.e., at home, cloud, etc.)
• Submitting a complete feedback form after cluster creation and at the end of Bia
• Submitting a complete Grafana dashboard for the dashboard competition (more details will be released in mid-February)

The official statement claims that obtaining 5 technical ambassador POAPs will grant the recipient the role of [Junior Technical Ambassador] in the community, along with recognition, access to the Obol team, and other benefits.

https://www.notion.so/52ee03cb655c4da4ad2814f93bb21a93

There are other tasks outside of Bia that can also earn a technical ambassador POAP. For the complete list of ambassadors, please refer to the [Obol Ambassador Program] page.

https://www.notion.so/52ee03cb655c4da4ad2814f93bb21a93

Cluster Deployment Tutorial:

https://obol-dvt.notion.site/Obol-Bia-Testnet-Handbook-7003ac195a2d422fa3f0ee31cc15e4d6