Deutsche Telekom is expanding its activities in the field of blockchain technology by including the second largest blockchain in the world. DT’s subsidiary, T-Systems MMS provides the Ethereum Network with infrastructure in the form of validation nodes. Validators play a key role in the operation and security of blockchains.
Ethereum uses the cryptocurrency Ether (ETH) as a means of payment for transactions. After the so called “Merge”, Ethereum recently relies on Proof-of-Stake (PoS) for consensus, which, in addition to laying the foundation for future scalability improvements, significantly reduces the blockchain’s energy requirements. T-Systems MMS maintains sustainable blockchain networks and therefore supports the transition to PoS by operating validation nodes.
T-Systems MMS is supporting Liquid Staking for the first time In addition, the Deutsche Telekom subsidiary cooperates with Stake Wise. StakeWise offers liquid staking pools, which allow users to keep their ETH tokens without having to operate validator nodes themselves. As a result, the entry barrier for investments in cryptocurrency is lowered.
The Deutsche Telekom subsidiary also participates in the governance of StakeWise and has joined the so-called Decentral Autonomous Organization (DAO ). In this way, T-Systems MMS contributes to transparency and security in the Ethereum network.
In the process of staking , cryptocurrencies are used to maintain the blockchain consensus . In other words, the correctness of the transactions is confirmed. For this participation in the functioning of the blockchain, the owners of the cryptocurrency receive a reward, similar to interest rates.
StakeWise is a decentralised application that simplifies ETH staking for individuals and organizations. As a liquid StakeWise platform, staking and reward ETHs enable users to liquidate their Ether tokens at any time or to use them for additional revenue streams in decentralized finance (DeFi).
Dirk Röder, Head of Blockchain Solutions Center at T-Systems MMS
Our cooperation partner StakeWise collects individual Ether tokens from many different owners and merges them into validator nodes. These validator nodes are provided and operated as infrastructure by T-Systems MMS. Staked Ether tokens remain available to the owner in this construct – liquid – and can be used in other Decentralized Finance (DeFi) applications.
