Image: Deutsche Telekom
Telecommunications giant Deutsche Telekom, the parent company of T-Mobile, has announced that it will launch a validator to support Ethereum staking.
On September . 29, the German company said its T-Systems Multimedia Solutions (MMS) division is working with a Proof-of-Stake and DAO StakeWise application to manage a pool that allows customers to participate in transaction verification without having to run the validator themselves, according to Decrypt.
Ethereum moved to proof-of-stake (PoS) earlier this month in a long-awaited transition known as The Merge. This has made the cryptocurrency much more energy efficient by eliminating the need for miners and replacing them with validators.
“As a node operator, our entry into liquid staking and the close collaboration with a DAO is a novelty for Deutsche Telekom,” Head of Blockchain Solutions Center at T-Systems MMS Dirk Röder Head said in a statement. Liquid staking refers to the service of giving your funds to a third party to stake—pledging assets to the network for a given period of time—and in return receiving another token that can be used elsewhere.
Deutsche Telekom believes that liquid staking with their new service will attract customers because, like other similar services like Lido, it eliminates the need for them to create a validator node, and it is cheaper. To set up your own node, you need 32 ETH, which is around $41,600 at the time of writing.
Services like this are becoming more and more popular now that the leading network for DeFi and NFT has moved to proof of stake. Previously, Ethereum miners used significant quantities of computer hardware to process transactions on the blockchain, which was a very energy-intensive business. Now that there is proof-of-stake, anyone can participate. Those involved in staking essentially help validate transactions and keep the network secure. In return, these participants are rewarded with newly minted ETH.
T-Mobile, a subsidiary of Deutsche Telekom, last week joined forces with Nova Labs to launch Helium Mobile, a 5G wireless service that allows users to earn rewards in crypto tokens for sharing data.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.