Kraken has become the first major crypto exchange to fully integrate Distributed Validator Technology (DVT) into its Ethereum staking infrastructure, utilizing the SSV Network protocol. This significant move enhances decentralization and fault tolerance, as almost all of Kraken's ETH staking operations now run on distributed validator clusters instead of single-machine validators. Each validator is managed by a cluster of typically four independent nodes to ensure software and geographical diversity. Key management has also been reformed, distributing validator keys to prevent any single operator from having complete control. This transition includes a synchronized, distributed slashing-protection database to mitigate slashing risks. SSV Labs highlighted the customizable nature of DVT, allowing participants to optimize for diversity according to their needs. Kraken's success marks a critical advancement for DVT adoption, indicating the technology’s readiness for scalable institutional staking environments.

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