The Ethereum community is now focusing on one critical theme: the risk of a supermajority client. Without delving too deep, as Dankrad Feist has already brilliantly explained this risk over two years ago in his article here, it's crucial to understand the serious threat it poses.
A bug in an execution client, if it is used by over 66% of the network, could force the community into painful decisions impacting network stability, users' funds, and the ETH token price.
The community is already showing positive signs, reducing Geth dependency from 84% (source: clientdiversity.org), which is a step in the right direction. While execution client matters used to be passive, recent bugs with Nethermind and Besu have sparked conversation and concern among investors and professional staking providers.
ETHEREUM CLIENTS DISTRIBUTION
How DVT Helps The demand for change is loud and clear. Large staking service providers, therefore, are reassessing their strategies to reduce their reliance on Geth. But what constitutes a sustainable change to mitigate supermajority risks today?
Imagine a scenario where providers start replacing Geth with another client, like Nethermind. This could inadvertently create a new supermajority. The Ethereum goal is a multi-client architecture where no single client software exceeds ⅓ of the total network coverage.
DVT is crucial here. By staking on SSV.network, for example, your validator is managed by a minimum of four node operators, significantly reducing the risk of a system failure. As long as three out of four operators (or the set threshold for larger clusters) are active, the validator remains online and continues earning rewards. This added fault tolerance benefits client-related bugs and common faults among node operators, such as power failure, connectivity issues, or even hardware or software failure.
However, this isn't a complete solution. Clusters of node operators belonging to one single entity are not unlikely to be seen, which can undermine the goal of decentralization. This becomes riskier if they use the same EL/CL setup, as a bug in one client could affect the entire cluster.
A takeaway from this for investors is to pay attention to which node operators are running the cluster, their setup, and how each node operator is correlated to others.
What P2P.org is Doing Now Navigating these complexities can be overwhelming. That's why, at the end of last year, we developed our DVT Staking API solution, designed for large enterprises to automate staking and lower the risk of a penalty occurring due to client supermajority bugs.
This non-custodial solution, powered by DVT (SSV.network), gives instant access to a secure and diversified staking environment. By integrating a smart contract to manage $SSV on behalf of the client, we remove complex manual processes so that users can stake their ETH while having a top-performing cluster managing their validator.
Initially, creating a cluster with diverse EL/CL clients was challenging. Some node operators struggled with minority client synchronization, forcing a balance between performance and client diversification. Until recently, our network supported two operators running Geth. This has changed with the addition of RockX to our network. Their institutional expertise and focus on minority clients accelerate our path toward decentralization, ensuring no single execution/consensus client dominates our cluster.
P2P.org's Future Plans P2P has been actively working on solutions to mitigate risks posed by an execution client supermajority and other systemic risks. But, we are far from being satisfied. While we've made meaningful progress, the issue of preventing future clients from gaining a supermajority remains. Our cluster can be decentralized further, and we're contributing toward achieving a network where no client has more than ⅓ of the nodes.
Institutions seek more control over their validators, including client selection, location, and MEV relays. We're responding to these needs by developing features starting with CL/EL selection. If you prefer using only minority clients for your validator, we're making that a reality.
<p><br>We're thrilled to announce a <strong>significant milestone in our journey to provide the safest and most reliable validator infrastructure and staking services</strong>. We have completed <strong>the SOC 2 Type I audit</strong>, an essential step in demonstrating our commitment to the highest security standards in the industry.<br></p><p><strong>What is a SOC 2 Type I Audit?</strong></p><div class="kg-card kg-callout-card kg-callout-card-blue"><div class="kg-callout-emoji">💡</div><div class="kg-callout-text">The SOC 2 Type I audit is a rigorous evaluation conducted by an independent auditor.</div></div><p>For us, we partnered with <a href="https://kirkpatrickprice.com/?ref=p2p.org">KirkpatrickPrice</a>, a licensed CPA firm, PCI QSA, and HITRUST CSF Assessor with over eighteen years of experience that has carried out over 20,000 audits. The audit assesses the design and implementation of P2P.org internal controls related to our systems' security, availability, processing integrity, confidentiality, and privacy. <strong>This audit is critical for organizations like ours that handle sensitive data and operate in the blockchain ecosystem.</strong></p><p>This achievement is more than just a compliance milestone; it reflects our core values of trust, transparency, and decentralization. Maintaining robust security measures is paramount as we grow and help onboard more institutional investors. The SOC 2 Type I audit assures our users and partners that we are dedicated to protecting their digital assets and information.<br></p><p><strong>P2P.org's Approach to Security:</strong><br>Our team of over 250 professionals, predominantly developers and engineers, works tirelessly to enhance and secure our platform. We provide direct staking and liquid staking capabilities backed by leading infrastructure and insurance protection. Our SOC 2 Type I compliance is a testament to the effectiveness of our security practices and our commitment to continuous improvement.<br></p><p>For our users, this means greater confidence in our platform's ability to safeguard their assets. Whether you're an individual staker or an intermediary like a wallet, exchange, or custodian, you can trust P2P.org to provide secure access to the entire DeFi ecosystem. Our successful SOC 2 Type I audit reinforces our promise to deliver a decentralized, non-custodial staking experience that puts your interests first.<br></p><p>As we celebrate this achievement, we remain focused on our mission to drive the global adoption of decentralized blockchain networks. Our commitment to security is unwavering, and we will continue to embrace new challenges and opportunities to serve our community better.<br></p><p>Thank you for being part of our journey. Together, we are shaping a more accessible and secure financial future.<br></p>
<p>P2P.org is excited to announce a partnership with Renzo, a Liquid Restaking Token (LRT) and Strategy Manager for EigenLayer. This collaboration signifies another step forward in our commitment to decentralizing node infrastructure, institutional adoption of our Staking API and enhancing Ethereum's economic security.<br></p><p><strong>Who are Renzo?</strong><br>Renzo is at the forefront of facilitating permissionless innovation on Ethereum. As an interface to the EigenLayer ecosystem, Renzo secures Actively Validated Services (AVSs), stating they offer yields higher than traditional ETH staking. By abstracting the complexities, Renzo allows end-users to collaborate seamlessly with EigenLayer node operators. Renzo's dedication to promoting EigenLayer's vision of trust acquisition and ecosystem development makes it an ideal partner for P2P.org.<br></p><p><strong>Our Collaboration</strong><br>P2P.org has been fully integrated into Renzo's Mainnet, as the second node operator. This integration enables us to scale Ethereum's economic security to all EigenLayer AVS. Renzo's approach to liquid restaking, combined with our expertise in institutional-grade node operation, creates a powerful synergy. We are thrilled to contribute to Renzo's mission of offering high-quality restaking services.<br></p><p>Renzo's advocacy for EigenLayer and its commitment to decentralized innovation aligns perfectly with our core values at P2P.org. We both strive for transparency, security, and the widespread adoption of decentralized solutions.<br></p><p><strong>Looking Ahead</strong><br>This partnership marks a significant milestone in our journey towards a more decentralized, secure, and innovative Ethereum ecosystem. We are proud to collaborate with Renzo and contribute to the EigenLayer vision. <br></p><p>Stay tuned for more updates and developments from this strategic partnership!<br></p><p>For more information about Renzo and EigenLayer, visit their <a href="https://www.renzoprotocol.com/?ref=p2p.org">website</a> and explore their innovative solutions for Ethereum staking. <br></p><p>As always, <a href="P2P.org">P2P.org</a> remains committed to our core values of Security, Transparency, Asset Rewards, Technology, and Smart Governance (STATS), ensuring the best for our community and partners.<br><br>Contact us on our official community Telegram channel if you’d like to speak to our team.<br><br>Link: <a href="https://t.me/P2Pstaking?ref=p2p.org">https://t.me/P2Pstaking</a></p>
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