T-Systems MMS, a Deutsche Telekom subsidiary, to provide the Ethereum Network with infrastructure in the form of validation nodes

Deutsche Telekom provides infrastructure for Ethereum, second largest blockchain in the world, and enters into Liquid Staking. © Deutsche Telekom

T-Systems MMS partners with StakeWise to increase transparency and security

(PRESS RELEASE) BONN, 29-Sep-2022 — /EuropaWire/ — Deutsche Telekom (ETR: DTE), one of the world’s leading integrated telecommunications companies and the largest telecommunications provider in Europe by revenue, has announced that its subsidiary T-Systems MMS will provide the Ethereum Network, the second largest blockchain in the world, 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.

“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”, says Dirk Röder, Head of Blockchain Solutions Center at T-Systems MMS.

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.

“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”, adds Dirk Röder.

“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”, explains Kirill Kutakov, co-founder of StakeWise.

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).

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About StakeWise: StakeWise works with node providers such as Blockdaemon, T-Systems MMS, Finoa Consensus Services and others to deliver decentralized staking to more than 4,000 customers. Since its launch in March 2021, the protocol has attracted more than 75,000 ETHs and more than $50 million in liquidity for invested assets, making it the third largest staking protocol on Ethereum. Visit stakewise.io for more information.

Media contact:

Martina Hammer
Spokesperson, Corporate Blogger

media@telekom.de
+49 228 181 49494

SOURCE: Deutsche Telekom AG