The Important Role of Distributed Validator Technology in Ethereum Decentralization

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

The consensus layer is a key component of blockchain, including the consensus mechanism and its scalability. Ethereum completed its transition from proof of work to proof of stake in September 2022. The number of validators has increased from 400,000 to nearly 600,000. The current focus is on making Ethereum staking more decentralized, scalable, simple, secure, and more friendly to independent stakers. In this regard, distributed validator technology (DVT) shows great potential.

DVT simplifies the process of running Ethereum validators on multiple machines. It employs technologies such as distributed key generation, allowing the validator private keys to be stored in shards across multiple nodes. This enhances security, as even if some nodes are offline, the remaining nodes can still maintain integrity and sign. DVT also requires a coordination mechanism to ensure secure communication between nodes, a common method being threshold signature schemes.

DVT brings benefits to multiple parties in the staking ecosystem. For liquid staking pools, it can diversify risks; for independent stakers, it can enhance reliability; for institutional staking products, it can reduce costs. Overall, DVT reduces the risk of node failure, improves key security, and increases client diversity.

However, DVT is only part of the decentralized ETH staking. It needs to be combined with other technologies such as liquidity staking pools and secure key storage to truly achieve decentralization, scalability, and security of ETH staking.

DVT also faces some challenges, such as increased system complexity and potential delays. Currently, there are certain limitations on the number of nodes and the number of key shards. However, overall, DVT represents an important advancement in the staking ecosystem and is expected to become a key player in Ethereum staking in the future. As technology continues to evolve, DVT will bring more opportunities to the blockchain community.