Deutsche Telekom Becomes Validator of Ethereum blockchain
Following Ethereum’s transition to an eco-friendly consensus, Deutsche Telekom will become a validator for the blockchain. A recent event referred to as “The Merge” shifted Ethereum from Proof of Work, an energy-intensive consensus that required expensive computers to solve complicated equations, to the environmentally friendly Proof of Stake. Thus, Ethereum has decreased its energy use by around 99.98 percent.
Ethereum is the biggest platform for smart contracts, and it is anticipated that its conversion to an environmentally-friendly consensus would attract people, businesses, and institutions who previously did not want to be connected with energy-intensive technologies.
Thursday, Deutsche Telekom stated that it is extending its blockchain efforts by embracing Ethereum. T-Systems MMS, a subsidiary of the operator, will supply validation nodes as infrastructure for the Ethereum Network.
“Our collaboration partner StakeWise takes Ether tokens from several owners and combines them into validator nodes.” T-Systems MMS provides and operates these validator nodes as infrastructure, according to Dirk Roder, Head of Blockchain Solutions Center at T-Systems MMS.
“Staked Ether tokens remain liquid and accessible for usage in other Decentralized Finance (DeFi) apps in this model.”
Similar to how Bitcoin is controlled by a small number of mining pools, there are worries about Ethereum’s centralization due to the concentration of substantial power in a limited number of staking pools. Over time, more engagement should assist to improve decentralization.
“As a result of the switch to Proof-of-Stake, we anticipate a huge increase in demand and financial movements on the Ethereum network. StakeWise’s co-founder, Kirill Kutakov, argues that T-Systems MMS, as an infrastructure provider, gives our protocol more stability and makes the Ethereum ecosystem safer overall.
The sponsorship of Ethereum by Deutsche Telekom follows support for the Flow, Celo, and Polkadot blockchains.
“After partnering with Flow, Celo, and Polkadot, we are now taking the next decisive step in the realm of blockchain and are performing groundbreaking work with Ethereum. Deutsche Telekom’s introduction into liquid staking and the tight engagement with a DAO are novelties, according to Roder.