Blockchain networks are predominantly distributed network of ledgers, capable of adding data via a consensus mechanism to ensure data integrity. There are multiple consensus mechanisms.

Now PoW or Proof of Work is the well known consensus mechanism followed by Proof of Stake. Proof of Work is a consensus mechanism where any node capable of using its computational resource to comeup with a mathematical solution to a hashing function will be awarded the block. In Proof of Stake, a random user is chosen based on a probability which is a function of the amount staked into the network. While PoW relies purely on decentralization and majority to maintain a good chain of events, PoS relies on game theory and incentives. The stake is vital part of incentives, as a malicious node will be slashed a part or full of its stake, if proved to be malicious.

In Proof of Stake a node is said to be malicious, if when called upon the Node doesn't respond on time to create a block, or when double signing occurs. There are many other cases too, but we will only look at the implications of these.

Nodes are nothing but Computer systems. Now these systems are hooked on to the World, which means, parameters like network connectivity, power supply influence these systems. A Proof of Stake node is expected to have near zero downtime to prevent slashing. Hence, when such nodes are built, backup nodes are also created. Every validator has a private key for signing blocks, which implies, both the main node and backup node have the same private key.

Now, backup nodes are designed to jumpin when the main node experiences issues. In the event of a mal function, if both the nodes turn up, it would cause both the nodes to sign the same block twice, which would be registered as a malicious attempt. This means running backups are risky, esp with Ethereum as ETH2 slashes the entire stake of 32 ETH.

If backups are not viable, the only viable options are cloud based systems. However running these systems will be on either Google or Amazon Hardware. This cloud based centralization defeats the point of Network decentralization. It is in this case OBOL has comeup with a proof of concept Distributed Validator Technology.

Distributed Validator Technology is basically a subsystem of validators, that act as a single Node. This is similar to Pooling of computational resources in PoW mining. This allows versatility as even if one of the nodes fail, the other nodes can handle the requests. Moreover, this technology improves decentralization as anyone with a validator system can join a pool, share the slashing risk and the rewards. This also allows a common validator to pool the assets required to stake.

By improving accessibility of pure Staking, without need for smartcontract based DAOs like Lido or RocketPool, OBOL attempts to be more inclusive to the common user, allowing them to join validation. This would enable Bitcoin like decentralization, without having to worry much about computational resources needed or power consumption.

References :

• Tackling the Staking Problem - Blog post
• Blockchain Consensus And Fault Tolerance In A Nutshell - Medium Post