Telecom giant Deutsche Telekom, parent company of T-Mobile, will operate a validation program to support Ethereum staking.
Specifically, the T-Systems Multimedia Solutions (MMS) division is partnering with proof-of-ownership and DAO application, StakeWise, to operate a pool that will allow its customers to participate in transaction validation without having to perform a validator role themselves.
“As a node operator, our entry into staking and close cooperation with a DAO is an innovation for Deutsche Telekom,” said Dirk Röder Head of the Blockchain Solutions Center at T-Systems MMS, Dirk Röder Head.
The benefits
Deutsche Telekom believes that staking through its new service will attract customers because, like other such services (e.g. Lido), it saves them the hassle of having to create a validation node themselves, and it is also cheaper (to create one’s own node, one needs to stake 32 ETH, which at today’s price is about $43K).
Anyone can participate
Such services are becoming increasingly popular now that Ethereum, the leading network for DeFi and NFT, operates with a proof of participation mechanism.
Previously, Ethereum miners used computers to process transactions on the blockchain, but now with the proof of participation mechanism anyone can get involved by staking the blockchain’s currency, ETH.
Those who participate in the staking essentially help validate transactions and secure the network and in return receive with new ETH.
Engaging in cryptocurrencies
Deutsche Telekom has been involved in the world of cryptocurrencies for quite some time.
Last year, it invested in Celo, a blockchain startup that provides mobile services, and also provides staking services for the Flow, Celo and Polkadot blockchains.
StakeWise co-founder Kirill Kutakov added that the app expects “strong demand and significantly increased fund flows” after the merger.
Recall that T-Mobile, a subsidiary of Deutsche Telekom, has joined forces with Nova Labs to launch Helium Mobile a 5G wireless service that allows users to earn HNT rewards for data sharing.
Previous Articles:
- European Commission calls for a global regulatory framework for crypto
- Mastercard Launches platform for Crypto banking
- France authorizes another bank to offer digital assets to its customers
- Swiss city of Lugano embraces bitcoin as a means of payment
- Lexus NFTs arrive on Polygon. Another TOP deal for MATIC
