Emily Walker
SSV Network has unveiled SSV 2.0, a pioneering framework devised to integrate “Based” Applications (bApps) into the Ethereum ecosystem. This new infrastructure is designed to boost network security and facilitate the development of genuinely decentralized bApps while upholding Ethereum’s foundational principles.
SSV Network Introduces ‘Based Applications’ on Ethereum
In a recent announcement, SSV Network introduced SSV 2.0, aimed at tackling the escalating fragmentation within the ecosystem and the demand for interoperable Layer 1 (L1) solutions.
SSV Network operates as a fully decentralized staking infrastructure, currently securing 1.9 million staked ETH. This platform enables the collaborative operation of Ethereum validators through Secret Shared Validators (SSV) technology.
The announcement elaborated that the revised bootstrapping model empowers applications to become “based” by utilizing Ethereum’s validator network directly. This “based” methodology intends to “reunite fragmented liquidity” while bolstering security via the validator infrastructure of Ethereum.
SSV Network emphasized the expanding based ecosystem, which necessitates an effective “based solution for bootstrapping.” SSV 2.0 is set to assist developers in innovating on Ethereum L1, aligning developments with the original ethos and forward-looking vision of the ETH ecosystem.
Key issues being addressed include fragmentation, steep bootstrapping costs, and security shortcomings associated with many Layer 2 (L2) solutions. Alon Muroch, Founder and CEO of SSV Labs, expressed that this initiative could revamp the restaking market, initiate a fresh “based economy,” and redefine the economic framework of the network:
SSV 2.0 represents the most ambitious project ever envisioned for SSV Network DAO. If executed by the DAO, it will significantly alter the restaking market and foster a new ‘Based Economy’ where validators directly secure the bApps of the future, transforming SSV economics positively.
New Class of Decentralized Applications
The SSV 2.0 platform is designed to ground all services or applications directly on the Ethereum L1, resulting in a “new class of decentralized applications” that empowers validators to extend their functionalities. Moreover, it aims to guarantee that bApps benefit from the security, decentralization, and Sybil resistance inherent in Ethereum L1.
In this model, bApps acquire security directly from L1, distinguishing them from existing restaking models that rely on various tokens. This alignment enhances the overall Ethereum experience without exposing the network or its validators to cascading risks. Furthermore, the extended security model transcends traditional bootstrapping, introducing an innovative ‘Infinite-sum’ security framework, where increased participation enhances overall network strength rather than fostering competitive scarcity.
The innovative model employs the validator network as the core security mechanism, enabling a “shared security foundation” to support various cases such as L2s, oracles, fraud-proof systems, and other validation-dependent functions.
Validators are incentivized to support bApps during the bootstrapping process. According to SSV Network, within the SSV 2.0 model, validators can enhance their rewards by participating in secure bApps or offering diverse services, such as L2 sequencing or validator commitments to those in need.
Additionally, the development of the SVV Chain has been announced as the initial bApp designed to “facilitate the coordination of the new based economy.” This dedicated chain will serve as a secure coordination layer, enabling the SSV network to expand across other Layer 1 networks, including Solana, Avalanche, and Cosmos.
SSV Network also disclosed plans for tokenomic updates as it transitions from a Distributed Validator Technology (DVT)-focused staking infrastructure to a multilayered network tailored for the based economy. This includes enabling broader participation in securing bApps and implementing new mechanisms for burning tokens and managing fees, as stated in the announcement.