Tencent and Huawei, two major Chinese tech giants, are making notable strides in the Web3 space despite the country’s stringent regulations on cryptocurrency trading.
At the Staking Summit in Istanbul, a two-day conference featuring top minds in proof-of-stake (PoS) protocols , Tencent and Huawei exhibited their booths alongside industry professionals, according to a recent report by TechCrunch .
Over the past year, Chinese tech giants like Alibaba, Tencent, and Huawei have been increasingly visible in various crypto events worldwide, either as official sponsors or discreet attendees.
Although their participation lies at the intersection of Web2 and web3 due to China’s cryptocurrency ban, these companies are leveraging their computing resources to cater to web3 startups, similar to how they provide cloud services to established tech verticals.
While cloud expenses 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 firms are far more proactive and accommodating with customers because they lack brand recognition, especially in the West,” the report said.
“As such, they have to compete by offering cheaper — or better services.”
In addition to providing cloud infrastructure, Chinese firms have ventured into areas beyond their core products, putting them in direct competition with crypto-native companies.
For instance, they have been involved in building enterprise blockchains, avoiding the public blockchain realm that heavily relies on tokens due to China’s crackdown on cryptocurrencies.
Some Chinese tech giants also offer node-as-a-service businesses.
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