Tencent And Huaweitwo major Chinese tech giants, are making remarkable progress in Web3 despite the country’s strict regulations on cryptocurrency trading.
At the Top of strike in Istanbul, a two-day conference with top minds in proof-of-stake (PoS) protocolsAccording to a recent publication, Tencent and Huawei exhibited their booths alongside industry professionals report from TechCrunch.
Over the past year, Chinese tech giants like Alibaba, Tencent and Huawei have become increasingly visible at various crypto events around the world, either as official sponsors or as discreet attendees.
Although their entry is at the intersection of Web2 and Web3 due to China’s cryptocurrency ban, these companies are leveraging their computing resources to serve Web3 startups, similar to the way they provide cloud services to established tech verticals.
While cloud costs for decentralized networks are still relatively modest, Chinese cloud providers are actively venturing into the crypto space.
“As underdogs in the global cloud market, Chinese companies are much more proactive and accommodating to customers because they lack brand recognition, especially in the West,” the report said.
“As such, they must compete by offering cheaper or better services.”
In addition to offering cloud infrastructure, Chinese companies have also ventured into areas outside their core products, competing directly with crypto-native companies.
For example, they have been involved in building blockchains for enterprises, avoiding the public blockchain domain that relies heavily on tokens due to China’s crackdown on cryptocurrencies.
Some Chinese tech giants also offer node-as-a-service businesses.
Blockchains operate on distributed nodes, which can be expensive and complex to maintain.
To address this, companies like Huawei are offering node hosting services, allowing companies to build decentralized applications without the need for high technical expertise.
Chinese tech giants are forging partnerships with crypto projects
As pioneers among Chinese tech giants in the Web3 sector, Tencent and Alibaba have forged partnerships with respected projects to improve their reputations in the sector.
Tencent has collaborated with public blockchains such as Sui, Avalanche and the Ethereum scaling solution Scroll.
Meanwhile, Alibaba has joined forces with Aptos, a blockchain developed by former Meta employees, to increase its presence in the web3 world.
The two companies recently announced that they will jointly organize hackathons in the Asia-Pacific region using the Move programming language.
Currently, Web3 has not had a significant impact on the revenue of Chinese tech giants.
However, these companies recognize the enormous potential of the emerging industry and understand that they cannot afford to overlook this opportunity, despite market volatility and the collapse of major players like FTX.
If reportedIn May, the Beijing Municipal Science and Technology Commission released a white paper in an effort to promote innovation and development within the Web3 industry.
The paper, also called the ‘Web3 Innovation and Development White Paper’, was unveiled at the Zhongguancun Forum by the Beijing Municipal Science and Technology Commission, also known as the Administrative Commission of Zhongguancun Science Park.
The committee aims to build Beijing into a global innovation center by allocating at least CNY 100 million (USD 14 million) annually until 2025.