DVT technology aids Ethereum long-term Decentralization

Ethereum is achieving decentralization through scalability, and a modular blockchain approach is gradually gaining momentum. In this model, the blockchain is divided into execution layer, data layer, and consensus layer. The execution layer is relatively mature, and research focus has now shifted to the data layer and consensus layer.

In September 2022, Ethereum completed the transition from proof of work to proof of stake. The current focus is on making staking more decentralized, scalable, simple, secure, and friendlier to independent stakers. Distributed Validator Technology ( DVT ) has shown great potential in this regard.

DVT allows validators to run on multiple machines, achieved through technologies such as distributed key generation. It enables validators to shard their private keys across multiple nodes, maintaining functionality even if some nodes are offline. DVT also requires a coordination mechanism to ensure secure validation and communication between nodes, with a common approach being threshold signature schemes.

DVT brings benefits to multiple parties in the staking ecosystem. For liquid staking pools, it reduces reliance on a single validator. For independent stakers, it mitigates the impact of network or power outages. For institutional staking products, it can lower operational and hardware costs.

DVT improves key security, increases client diversity, thereby reducing risk, decreasing penalties, and enhancing staker confidence. Combined with other technologies such as liquid staking pools and node collateralization, DVT helps to lower the staking threshold, reduce collusion risk, and further enhance security.

However, DVT also faces some challenges. It increases system complexity, which may introduce delays, and the requirements for node redundancy may also increase. Currently, there is also a certain limitation on the number of key shards.

Nevertheless, DVT represents a significant advancement in the staking ecosystem. It provides a more secure, flexible, and decentralized infrastructure for staking, and is expected to become a key technology for future Ethereum staking. As the ecosystem evolves, DVT has the potential to meet changing demands and drive advancements in blockchain technology.