The SSV DAO, the decentralized autonomous organization behind the decentralized staking protocol SSV Network, unveiled Tuesday a new framework, called “SSV 2.0”, which will allow applications to make use of “based” technology by leveraging Ethereum validators.
SSV 2.0 will be the most ambitious project for the SSV Network, according to a press release shared with CoinDesk, and will bring based applications (bApps) to Ethereum.
“Based” applications, especially “based rollups,” are a new type of technology attracting the attention of Ethereum developers as it allows for better interoperability while improving the security of networks on top of Ethereum.
Based rollups specifically can be seen as a solution to the many layer-2 networks on Ethereum today, which have caused much fragmentation across the space. By leveraging “based” technology, those protocols or applications can “base” their security and execution operations off of Ethereum’s layer-1 validator set.
Currently, layer-2 networks use “sequencers” to order transactions and post those back to Ethereum. The issue with sequencers today is that they remain to be a centralizing component and can be a single point of failure. By using the validators from the layer-1 to do the execution and security work, networks can avoid the downfalls of using centralized sequencers.
Furthermore, Ethereum developers agree that based rollups allow for better interoperability in the network. Ethereum ecosystem members have gathered over the last few weeks to find ways to solve this issue, and based rollups are seen as a major breakthrough for that.
Now the SSV Network will also tackle these issues by bringing applications with based technology to Ethereum. According to the SSV team, bApps gain “security directly from the L1 instead of utilizing different tokens like in current restaking models, making them more Ethereum-aligned and not exposing Ethereum or its validators to cascading risks.”
As part of that, the DAO is suggesting to turn the SSV Network into a bApp. “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,” the team shared. (DVT, or distributed validator technology, refers to a type of tech that allows an Ethereum validator to run on multiple nodes simultaneously.)
“This announcement marks a transformative leap for bootstrapping Ethereum security, addressing the growing demand for Layer 1 (L1)-anchored interoperable solutions – as seen with base sequencing and based validator commitments – amid increasing ecosystem fragmentation,” the SSV team said in the press release.
Read more: SSV DAO Starts $50M Fund to Push Ethereum’s Decentralization Plan
