BASED Movement by SSV & ERC-7683: Redefining Ethereum Staking

Smart contracts to rollups and staking mechanisms, the Ethereum network has continued to push the boundaries of decentralization. But with every advancement comes new challenges—one of the biggest being decentralized staking and validator coordination.

The Growing Problem: Centralization in Staking

Let’s break it down. Ethereum’s security relies on validators who stake ETH and help maintain the network. However, staking isn’t as simple as just locking up tokens. Running a validator requires technical know-how, hardware, and continuous monitoring, which isn’t feasible for most users.

This is where liquid staking providers and staking pools come in, offering users an easy way to stake their ETH without dealing with the complexities. The downside? Centralization risks. A small group of staking providers now controls a significant portion of Ethereum’s staked ETH. If any of these major players experience failures, the entire network could suffer the consequences.

That’s where ERC-7683 enters the picture.

What is ERC-7683, and Why is it Important?

ERC-7683 introduces an intent-based validator marketplace standard that redefines how validators and stakers interact. It creates a permissionless coordination layer that makes staking ETH more accessible without relying on centralized intermediaries.

To put it in simple terms: Think of Uber, but decentralized.

Right now, if you want to stake, you’re often forced to use a big provider—kind of like calling a taxi from a single company. ERC-7683 changes that by creating a marketplace where anyone can securely match with independent validators, just like how Uber connects riders with drivers directly, without relying on a single company.

Read more on ERC-7683 here: ERC-7683: The Key to Seamless Crosschain Interactions

ERC-7683 and the BASED Movement

This proposal fits perfectly within Ethereum’s BASED movement, which pushes for decentralization and permissionless coordination. The goal is to move away from staking monopolies and toward a more open and resilient network.

The end game of secure Ethereum applications will be Based (alongside SSV 👀)

Learn what Based Applications are, their advantages, and why its important for every service to go Based — from Oracles, Layer 2s, Bridges and more 👇https://t.co/QxibJURGwF
— SSV Network (@ssv_network) January 24, 2025

SSV Network’s CEO, Alon Muroch, has called ERC-7683 the company’s “biggest, most ambitious project". If the Ethereum community adopts it, it could revolutionize the way staking works, making it more transparent, accessible, and decentralized.

The ‘Based-Applications Chain’: Expanding Beyond Ethereum

Another exciting development is the introduction of the ‘based-applications chain’, a coordination layer that helps Ethereum interact with other blockchain networks like Solana, Avalanche, and Cosmos. This could pave the way for seamless cross-chain compatibility, making it easier for applications to work across multiple ecosystems without sacrificing decentralization.

Why Should You Care?

Ethereum’s strength lies in its decentralization. But for it to stay truly decentralized, it must solve the challenges of validator coordination. ERC-7683 is a step in the right direction, ensuring that anyone can participate in staking without handing control over to a few big players.

This isn’t just another technical upgrade—it’s a critical move toward Ethereum’s core vision: a truly decentralized, censorship-resistant financial ecosystem. The conversation around decentralization isn’t theoretical anymore—it’s happening right now, and ERC-7683 is at the center of it.

If you care about Ethereum’s future, this is one proposal to watch.