Distributed Validator Technology

A high-level approach to DVT technology

Some basics before you start

// Operator: person, group of people or organization that manages an infrastructure 
(hardware + software set) in order to process the actions required by the 
Ethereum network
  
// Validator: block of 32 ETH locked in a SmartContract, composed of a private key
(KeyStore) and a public key, eligible to participate in the consensus and execution
Ethereum network

// Node: Hardware used to process the different pieces of software needed
to validate on the Ethereum network

// Consensus client: software installed on the node that allows the validator to perform
consensus tasks on the network

// Execution client: software installed on the node that allows the validator to perform
execution tasks on the network

// Light client: software installed on the node that acts as the coordination layer of the
the protocol used (SSV, Obol, Diva, etc.). Its function is to coordinate the consensus &
execution clients within the validator. 

// Cluster: set of Operators that manage a Validator

// Solo Staker: person who creates and operates a Validator at his or her own risk

Introduction

DVT, short for Distributed Validator Technology, is a very innovative technology used in validating the Ethereum network. It was born as a "research paper" funded by the Ethereum network itself and, today, it can already be used!

The technical operation is complex, although the basic idea is to offer a much more resilient validation layer for Ethereum validators than we have had until now. Its innovation is based on the implementation of operator clusters, groups of 4, 7 or 12 operators that carry out validation work jointly for the same validator. The most interesting? It is not necessary for any of the operators to know the validator's private key, so any validator can use a cluster with third-party operators.

At the same time, this structure incorporates an additional layer of operator fault tolerance. In each cluster managed by a validator, there will be a certain tolerance for failure since the rest of the operators will cover the work of the operator who, for whatever reason, is not available at that moment. In a cluster of 4 operators, it is enough for 3 of them to be synchronized to perform validation tasks.

This opens the door to both "stakers only", who can decide to have professional operators in their cluster to increase resilience, as well as alliances between node operators to improve the overall performance of the network. It opens certain debates, mainly regarding how to manage continued poor performance of an operator within a cluster; and, it does not solve others such as the entry barrier of capital necessary (32 ETH) to start a validator.

In any case, it is a giant step for the industry, which gains in resilience and performance!

An Ethereum holder who operates a validator node on his or her own is known as a "solo staker." That is, you have 32 ETH and decide to create and operate your own validator.

High level technical structure

To explain the generated structure at a high level, we will use graphs of the operation of SSV, one of the main providers of DVT technology along with Obol.

DVT technology allows you to take the private key of a validator and distribute it in a cluster of n different operators. These four cluster operators are responsible for coordinating with each other to sign the actions of the validator in the Beacon Chain (Ethereum network).

In the event that one of the four operators fails (assuming a cluster of 4), the other three will still be able to perform the signing tasks on the BeaconChain.

If we go into more detail, we can see how the intermediation between the validators of the Beacon Chain and the generation of rewards for the activity implies a series of additional Smart Contracts that allow this type of operation. That is why we must not forget that DVT is a technology that is not yet mature.

If you want to learn more about how DVT works through how SSV applies it, you can read this documentation prepared by SenseiNode, a highly recognized node operator in the sector!

DVT and its ramifications

So far, there are two main applications of DVT in the sector:

• On the one hand, protocols such as SSV and Obol, which provide the necessary toolkit to create your own operator clusters or, be another operator that users can use to create their clusters.

• On the other hand, Liquid Staking protocols such as DivaStaking, Stader or Lido's CSM, which are working to lower the barriers to be a node operator up to the limit of 1 ETH, using the principles of DVT.

Without a doubt, a sector in continuous development and one that Ethernodes is betting on, participating in the Diva testnets as well as having migrated its entire structure of Ethereum validators to its SSV clusters.