DVT 101: All You Need to Know on ETH Staking with Decentralized Validator Technology

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DVT 101: All You Need to Know on ETH Staking with Decentralized Validator Technology
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The crypto space is full of buzzwords and abbreviations, and today, I’ll be discussing one that’s not quite so widespread yet: Decentralized Validator Technology, or DVT. It promises to fix a major worry about how traditional validator setups operate on Ethereum by significantly decentralizing and securing the process.

If you hold more than 32 ETH though, you’ll need to split your stake between multiple “validators,” which explains the very large number of active validators today. In practice, there are likely 10,000-20,000 independent entities who are contributing to Ethereum security. In Ethereum, currently, the vast majority of the staking power is held by Lido, a decentralized finance protocol that offers a convenient “wrapper” or liquid staking token of a user’s staked position called stETH. The benefit of this system is that you can just stake on the protocol or even buy the token and start staking to earn yield without doing anything else — the underlying system does everything for you.

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