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Validator infrastructure developer ssv.network has launched a new ecosystem fund to support Ethereum proof-of-stake decentralization \u2014 a move that the company said would promote innovation around Ether (ETH<\/a>) staking technologies.\u00a0<\/p>\n The ecosystem fund, valued at $50 million, will support projects building applications using distributed validator technology, or DVT, the company announced on Jan. 19. The fund is solely dedicated to backing DVT use cases in support of Ethereum\u2019s long-term decentralization efforts. <\/p>\n DVT is an open-source protocol that allows a validator\u2019s responsibilities to be distributed across multiple nodes. The protocol was a key component of Ethereum co-founder Vitalik Buterin\u2019s roadmap for Eth2<\/a>, as more DVT implementation means more decentralization. <\/p>\n SSV noted that several venture capital investors \u2014 including Digital Currency Group, HashKey, NGC, Everstake, GSR and SevenX \u2014 have promoted Ethereum\u2019s use of DVT. <\/p>\n According to data, the blockchain industry seems to be on the path of stabilization. https:\/\/t.co\/GJIDiZAFe0<\/a><\/p>\n \u2014 Cointelegraph (@Cointelegraph) January 12, 2023<\/a><\/p><\/blockquote>\n SSV said it had already pledged $3 million toward developer grants and that $1.2 million has been allocated to over 20 proof-of-stake projects, including Blockscape, ANKR and Moonstake. <\/p>\n According to Alon Muroch, the core development lead at SSV, Ethereum is \u201ccurrently secured by a small group of companies, which, when put together, control the entire blockchain.\u201d He said the aim of DVT technology \u201cis to distribute Ethereum\u2019s security by offering quick and easy access to an open-source, public good which will completely change the way staking is operated today.\u201d<\/p>\n Related: <\/em><\/strong>ETH staking on top exchanges contributes to Ethereum censorship: Data<\/em><\/strong><\/a><\/p>\n Ethereum\u2019s transition to proof-of-stake is a multi-phased process designed to enhance the network\u2019s scalability, security and decentralization. The transition introduced ETH staking, where users actively participate in validating transactions. The minimum staking threshold for becoming a validator on Ethereum is 32 ETH.<\/p>\n Did you know there are different types of consensus mechanisms in blockchain? Read about the pros and cons of proof-of-stake and proof-of-work: https:\/\/t.co\/jqlPEENlRw<\/a><\/p>\n \u2014 Cointelegraph (@Cointelegraph) January 16, 2023<\/a><\/p><\/blockquote>\n As of early December, it was reported that demand for liquid ETH staking was on the rise. Blockchain analytics firm Nansen referred to staked ETH<\/a> as the \u201cfirst yield-bearing instrument to reach significant scale in DeFi.”<\/p>\n<\/div>\n\n
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