Germany’s Deutsche Telekom Rolls Out Ethereum Validator Node, Staking Support

Deutsche Telekom, the parent of T-Mobile is a Telecom giant. announced On Thursday, it launched its Ethereum staking services.

German company T-Systems Multimedia Solutions (MMS), stated that it is working with DAO StakeWise and a liquid Ethereum 2.0 Staking Service to create a staking pool which allows customers to validate transactions without the need to use a validator. Deutsche Telekom participates in the governance and operation of the StakeWise central autonomous organization (DAO).

In a statement, the Head of Blockchain Solutions Center at T-Systems MMS, Dirk Röder, said, “As a node operator, our entry into liquid staking and the close collaboration with a DAO is a novelty for Deutsche Telekom.”

Deutsche Telekom hopes liquid staking via its new service will be attractive because, similar to other services like Lido and Lido, it helps customers save time as well as the hassle of setting up a validator network for themselves. Furthermore, liquid staking is cheaper than ordinary Ethereum staking which requires users to set up their own node and they need to stake at least 32 ETHs, which at today’s price is around $43,338 in order to participate in staking activity.

Deutsche Telekom has been active in the crypto space for some time. Deutsche Telekom invested in Celo, a San Francisco-based startup that provides cryptocurrency through mobile services, last year.

T-Mobile, which is a subsidiary Deutsche Telekom’s Deutsche Telekom, joined Nova Labs last month to launch Helium Mobile, a 5G mobile service that allows users to share data and earn rewards in crypto tokens.

Why Users Are Preferring Liquid Staking

Ethereum staking refers to the locking up of funds by users in order to validate blocks and protect the Ethereum network. In return, they get staking reward in the form more ETH. Users are limited in their ability to participate in the staking process. To become a validator, investors must deposit 32 ETH collateral ($43,000) For ordinary investors, this is quite costly.

Liquid staking eliminates these limitations because it allows users to stake any amount Ethereum, and can effectively unstake their Ethereum without the transaction fees. Ethereum staking is now more popular than ever because it offers an alternative method for users to secure their stakes while earning rewards.

Late last month, Coinbase launched its liquid staking token, called Coinbase Wrapped Staked ETH (cbETH), ahead of the Ethereum blockchain’s Merge – a liquid staking service that allows users to generate extra yield on top of standard rewards for staking or locking crypto tokens in a network. Other institutions that manage major Ethereum staking pool include Binance, Lido Finance, and Kraken.

Source: Shutterstock

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