eastwest connect

Alibaba Blockchain Deal Hints at Boosting Cryptocurrency

Alibaba Blockchain Deal Hints at Boosting Cryptocurrency

It is learned on March 9 from Jinrong Jie (Financial World) that Alibaba’s cloud computing unit has signed an agreement with an encryption company to jointly promote the Web3 ecosystem, marking the Chinese e-commerce company’s foray into the blockchain field.

Abayun, the fast-growing high-tech arm of Alibaba, announced on March 7 that it signed a memorandum of understanding with Mysten Labs, the original developer of the Sui blockchain network.

Sui is a so-called layer 1 blockchain — separate from a network like bitcoin or ethereum — rather than a layer 2 blockchain like Polygon, which sits on top of other networks. As the original developer of Sui (now decentralized), Mysten is focused on the infrastructure of web3 – based on a vision of the future of the decentralized internet, with the crypto-economy at its core.

The decentralized systems used by many cryptocurrencies rely on a network of many individuals to support operations, rather than a single entity.

Alibaba aims to provide cloud infrastructure services for Sui validators, key players in a decentralized network — similar to crypto “miners” — who verify and secure transactions on the blockchain .

Mysten said in a statement: “The two companies will strengthen cooperation to develop a sustainable Web3 ecosystem, including builders, communities, etc. In addition, the two parties will also explore cooperation opportunities in the fields of e-commerce and payment.”

It marks an exciting push into the blockchain space for the Chinese tech group, which could have major implications if it paves the way for innovations in the company’s core e-commerce business and payments business.

Daniel Jiang, general manager of Alibaba Cloud Middle East, Turkey and Africa, said in a statement: “We are excited to partner with Mysten Labs to bring our security technology and proven solutions to this emerging space for more user-friendly, immersive Web3 experiences.”

“We are well-positioned to facilitate the growth of the Web3 ecosystem to better provide customers with scalable, efficient and secure infrastructure.”