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SSV Network recently revealed SSV 2.0, a new bootstrapping model to bring “Based” Applications (bApps) to Ethereum. The new infrastructure framework aims to enhance the network’s security and enable “truly decentralized” bApps without compromising Ethereum’s core values.
SSV Network To Bring ‘Based Applications’ To Ethereum
SSV Network announced SSV 2.0, an infrastructure framework created to “address the increasing ecosystem fragmentation” and growing demand for Layer 1 (L1)-anchored interoperable solutions.
SSV Network is a fully decentralized distributed staking infrastructure securing 1.9 million staked ETH. The staking network allows the distributed operation of Ethereum validators using Secret Shared Validators (SSV).
According to the announcement, the new bootstrapping model will allow applications “to go ‘based’” by directly leveraging Ethereum’s validator network. The “based” approach is set to “reunite fragmented liquidity while enhancing security” through Ethereum’s validator infrastructure.
Moreover, SSV Network highlighted the growth of the based ecosystem, which creates a need for “a based solution to bootstrapping.” It also noted that SSV 2.0 aims to allow developers to build on Ethereum L1 in a “way that is aligned with the original values and future vision of the ETH ecosystem.”
This includes solving several core issues like fragmentation, high bootstrapping costs, and inadequate security for many Layer 2 (L2). Founder and CEO of SSV Labs, Alon Muroch, stated that the project could change the restaking market, create a new “based economy,” and transform the network’s economics:
SSV2.0 is the biggest, most ambitious project for the SSV Network DAO that has ever been envisioned. If put in place by the DAO, it will profoundly change the restaking market and will create a new ‘Based Economy’ where validators directly secure the bApps of tomorrow. All while positively transforming the SSV economics.
A ‘New Class’ Of Decentralized Apps
According to the announcement, SSV 2.0 bases any services or applications directly on the Ethereum L1, creating a “new class of decentralized applications” that allows validators to do more. Additionally, it aims to ensure that bApps can use Ethereum L1’s security, decentralization, and Sybil resistance.
A bApp gains 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. Additionally, gaining more security for the cost of bootstrapping SSV 2.0 extends beyond traditional bootstrapping approaches by introducing the first ‘Infinite-sum’ security model, where increased participation strengthens the entire network rather than creating zero-sum competition.
The new model utilizes the validator as the basis of security to provide a “shared security foundation” to bootstrap any use case, including L2s, oracles, fraud-proofs, and other things that require validation and security.
Meanwhile, validators will be able to unlock benefits by helping bApps bootstrap. SSV Network states that in SSV 2.0, validators can increase their gains by opting into secure bApps or providing different services, like L2 sequencing or validator commitments, to those that need it.
The team announced the development of the SVV Chain as the first bApp to “support the coordination of the new based economy.” The dedicated chain will act as a secure coordinator layer to enable the extension of the SSV network to multiple L1s, including Solana, Avalanche, and Cosmos.
Additionally, SSV Network unveiled its tokenomic changes as part of its transformation from a Distributed Validator Technology (DVT)-powered staking infrastructure into a multidimensional network for the based economy. “First, SSV 2.0 will enable anyone to participate in securing bApps and get rewarded by staking SSV. Second, the SSV token will introduce new burning and fee mechanisms,” the announcement read.
Featured Image from Unsplash.com, Chart from TradingView.com
