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Deutsche Telekom ‘cool’ for running crypto validators

source-logo  cryptodaily.co.uk 08 June 2023 19:54, UTC

Deutsche Telekom, the technology giant, has joined the Polygon blockchain as a validator node, signalling its ambitions to become an infrastructure provider in the web3 space.

Dirk Röder, the head of the Blockchain Solutions Center at Deutsche Telekom, was quoted by DL News as saying that “supporting the Polygon network as a validator is a big milestone in this objective”.

Polygon not a layer 2?

Deutsche Telekom has decided to support the Ethereum ecosystem and its scalability solutions, and Polygon, known as the leading Ethereum Layer-2 scaling platform, aligns with that focus.

While Polygon was initially marketed as an Ethereum layer 2 scaling solution, it has since discontinued that terminology due to concerns about misrepresentation. Polygon is a sidechain, independent from Ethereum for its security, although it commits its transaction history to Ethereum.

The company's assets are secured by a multi-signature wallet controlled by a small group of individuals or entities. Deutsche Telekom also runs validators for other major and minor blockchains, including Ethereum, Q, Celo, Flow, and Energy Web.

Trad telecom company branches into cool new tech

The company's strategy for running validators remains unclear, with Röder highlighting that blockchain technology presents a valid business case and Deutsche Telekom receives percentages of the rewards.

However, another representative clarified that the company does not stake its own crypto assets but relies on others to do so while taking a cut of their rewards.

While some might speculate that Deutsche Telekom's involvement with blockchains could be a marketing strategy to appeal to a younger user base, overall, Deutsche Telekom's foray into node validation demonstrates its commitment to web3 infrastructure and its interest in the Ethereum ecosystem's scalability solutions.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.