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Deutsche Telekom Partner with Celo Blockchain Network

Published Wed, Apr 21 2021 15:20 pm
by Angitha Menon


One of the world's leading telecom firms with more than 242M mobile customers - Deutsche Telekom (DT), publicized their partnership with the Celo blockchain network. The smartphone-centric blockchain provides decentralized finance, including remittances & as part of the partnership, DT is joining the Alliance for Prosperity, making a prudent purchase of Celo native digital asset (CELO). The acquisition will be made by Telekom Innovation Pool (TIP) & its planned investment fund is advised by DT Capital Partners (DTCP).

Deutsche Telekom said that it will operate infrastructure across the Celo ecosystem. T-Systems Multimedia Solutions (T-Systems MMS), a subsidiary of DT, will serve as a validator node using the Open Telekom Cloud (OTC) in the Celo network, procuring the networking & offering exposure to staking rewards for CELO token holders. Celo also publicized the launch of its 2nd stable-coin for Euros, along with the current Dollar one. 

This makes DT the 1st mobile carrier to partner hundreds of organizations in the worldwide Celo community including, current CELO holders a16z, Reid Hoffman, Jack Dorsey & Poly-chain Capital. DT will open up its SMS API to permit validators to send text verification messages using its service. Expanding the diversity of SMS providers on the Celo network enhances both the reliability & security of the decentralized phone verification protocol, which plays a significant role in making the blockchain platform easy to use.

You may read: JP Morgan Tested Blockchain Transaction On GOMX-4 Satellite Constellation

The co-founder of Celo - Rene Reinsberg, said, "The robust combination of owning Celo & creating on its mobile platform will help speed up mass-market adoption of digital assets, thus enabling budget-oriented, secure & safe payments to people across the globe." In many third worlds, the market penetration of financial services & banking is much lower than the frequency of smartphones, which is the most prominent device for large no. of people. 

The inert potential of smartphones develops novel choices for mobile carriers to utilize all that the blockchain network offers, such as transparency, cost-effectiveness & speed. Creating on Celo's platform enables mobile carriers to quickly built on blockchain-based solutions & serve users in novel & meaningful ways. Instant access to capital via savings, low price peer-to-peer global remittances & micropayments, all of which are easily accessible through smartphones.

About Validator Node

PoW requires many power calculations to obstruct someone from seamlessly corrupting a blockchain. Compared to the Proof of Stake works by nodes that validate transactions staking or risking money in the form of cryptocurrency. If the node misbehaves by adding a fake transaction, its stake could be at risk. Every blockchain has various rules about when fines might be applied, called slashing & T-Systems MMS, to make sure that stakes aren't accidentally slashed.

The benefit is that those willing to stake cryptocurrencies receive a fair return; for instance, lately, Polkadot provides a staking reward of more than 13 percent & most offer more than 5 percent.

You may also read: PayPal Checkout with Cryptocurrency - Mass Adoption of Crypto

cEUR Stablecoin Introduces on the Celo Platform

Celo has publicized the inclusion of a euro-denominated Stablecoin - cEURO. The cEURO combined with Celo Dollar - cUSD notes the 2nd Stablecoin for mobile payments enabling inexpensive & secure way of transaction on the Celo platform. Both cUSD & cEURO are algorithmic & supported by various crypto-assets held in Celo Reserve, such as ether & bitcoin.

Having both Stablecoins opens up more comprehensive support, not only for creators interested in building on Celo but also for mobile carriers & other partner firms that are looking to innovate with e-money via blockchain-based services & products for the well-being of their users. Rene Reinsberg stated that the transaction between countries is still a significant challenge due to the siloed methods created by conventional financial services. An open infrastructure such as Celo, combined with cEURO Stablecoin, enables seamless access to digital assets from anywhere virtually within seconds, developing an entirely novel remittance market for the EU.

Alliance of Prosperity has more than 130 members, including Anchorage, GSMA, Mercy Corps, Andreessen & Coinbase. It offers inclusive mobile applications for seamless transactions, digital assets, wallets, international remittance & peer-to-peer lending.






Image Source: Deutsche Telekom