According to a new press release by T-Mobile’s parent company, Deutsche Telekom, the telecommunications giant will be partaking in Ethereum staking by launching a staking validator node through its subsidiary, T-Systems MMS.
T-Systems MMS, T-Mobile’s sister company, has partnered with the StarkWise staking pool to expand its presence in the Ethereum ecosystem.
Support for Proof-of-Stake
The news comes as the Ethereum blockchain recently underwent a hard fork that forced the trajectory of the blockchain to a Proof-of-Stake consensus mechanism, affectionally called by crypto enthusiasts the “Merge.” Previously, Ethereum required a system of machines constantly using computational power to solve complex cryptographic puzzles to run. After the Merge, the new operation protocol requires node operators to stake at least 32 ETH to validate transactions.
StarkWise utilizes a liquid staking model, where staked ETH is combined into validator nodes, allowing users with less than 32 ETH to reap staking rewards.
The decision to run validator nodes also shows support for Ethereum’s transition to a Proof-of-Stake consensus mechanism. According to the announcement, T-Systems MMS already manages “sustainable blockchain networks” like Celo and Polkadot. Additionally, the telecommunications company has joined the StarkWise DAO, participating in the protocol’s governance.
Dirk Röder, Head of Blockchain Solutions Center at T-Systems MMS, stated, “After collaborating 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 collaboration with a DAO is a novelty for Deutsche Telekom.”
According to StarkWise co-founder Krill Kutakov, StarkWise had been expecting a massive influx of interest in liquid staking solutions like StrakWise and Lido after the Merge. Kutakov said, “With the move 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 reliability and making the Ethereum ecosystem safer overall.”
Analysts Predict That More Institutions Will Adopt Ethereum
A recent research report from Bank of America addressed previous concerns about Ethereum’s scalability and high transaction fees. However, with recent developments in the Ethereum Ecosystem, the report states that the reduction of energy consumption may drive institutional investors to crypto for the first time. A couple of Bank of America added to the research article, stating: “The ability to stake ETH and generate a higher-quality yield (lower credit and liquidity risk) as a validator or through a staking service rather than on block-box lending/borrowing applications may also drive institutional adoption.”
T-Systems MMS is not the only Deutsche Telekom subsidiary opting to implement blockchain technology, as T-Mobile recently partnered with Nova Labs to launch Helium Mobile. Helium Mobile is a wireless service that allows users to earn crypto for sharing data.
Before the Merge, many companies interested in adopting web3 technologies opted for layer 2 solutions like Polygon. Companies including Starbucks, Coca-Cola, and Reddit now have web3 implementations in their branding. Despite the Polygon tokens still following the Ethereum ERC-20 token standard, they are interoperable with the Ethereum blockchain.
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