The Telekom subsidiary T-Systems now operates its own validator nodes in the Ethereum cryptocurrency network. Behind this is a cooperation with the blockchain company Stakewise DAO, for which T-Systems will be the infrastructure provider, the company said. With Stake Wise, users can deposit crypto money into a staking pool and participate in the staking process at Ethereum without having to operate a node themselves.
Furthermore, when you deposit into the pool, you also receive ERC-20 tokens, which are intended to be equivalent to the deposited ether and the proportionate staking rewards. These can then be used for other transactions on other blockchain finance platforms. Deposited Ether, on the other hand, are frozen until further notice, as the Ethereum network will only release staking deposits in an update that is not yet scheduled. With the reward, ten percent fee goes to Stakewise.
No more mining on Ethereum
On September 15, Ethereum successfully switched its consensus protocol from Proof of Work to Proof of Stake in the so-called merge. Since then, blocks of the blockchain have no longer been confirmed by mining, i.e. finding suitable hashes, which is computationally and energy-intensive. Instead, there is now the role of the validator, who buys into this position with a deposit of 32 Ether and is supposed to use their nodes to generate compliant blocks. In return, there are rewards for block generation and transaction fees. The process is called staking.
“Following cooperation with Flow, Celo and Polkadot, we are now taking the next decisive step in the blockchain world and are doing pioneering work here with Ethereum. As a node operator, our entry into liquid staking and the close cooperation with a DAO is a first for the Deutsche Telekom”, Tobias Jung, product manager for staking at T-Systems, commented on the cooperation.
“With the switch to Proof-of-Stake, we expect strong demand and significantly increasing capital flows in the Ethereum network. We are therefore pleased that T-Systems MMS as an infrastructure provider is giving our protocol more robustness and the Ethereum ecosystem is becoming more secure overall.” , added Kirill Kutakov, co-founder of StakeWise.
T system in the DAO
In addition, T-System has joined the DAO, which manages Stakewise, and intends to participate in the governance processes. DAO stands for decentralized autonomous organization, i.e. a company that conducts its business and administrative processes using blockchain technology as far as possible. A corresponding application for the inclusion of T-Systems was waved through within the DAO with 99.99 percent approval.
According to figures from the analysis platform Defillama, cryptocurrency deposits worth over 100 million US dollars are currently managed on Stakewise (total value locked). This ranks Stakewise as the 31st Ethereum financial platform in the Defillama ranking by deposits.
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