In an era where Google’s embrace of web3 as a strategic advantage might elicit chuckles from skeptics, a noteworthy shift is underway within the realm of cloud computing giants.

 In a recent development, Huawei Cloud unveiled its Web 3.0 node engine for public testing. 

This move, aimed at streamlining blockchain network management and authentication, signifies a major tech firm’s foray into the thriving web3 infrastructure landscape. Currently, the engine is compatible with Ethereum and Tron, offering support for Ethereum’s full nodes encompassing execution and beacon nodes.

Huawei, perhaps surprisingly, holds long-term ambitions for the web3 ecosystem. From launching metaverse initiatives to foster adoption in the Asian region to securing partnerships with big industry players like Morpheus labs and Polygon,the tech giant continues to show commitment to the web3 vision.

In the current climate of dwindling trade volume and subdued sentiment, this move might appear ill-timed and anomalous. 

This, is far from the case.

Enter the Titans

Dominating the cloud computing arena are the indisputable leaders: Amazon AWS, Microsoft Azure, and Google Cloud, boasting market shares of 32%, 23%, and 10% respectively. All three of these industry behemoths have previously demonstrated interest in the web3 domain, offering web3 builder labs on their existing servers.

Google, in particular, continues to aggressively expand its footprint in the web3 sector. With initiatives ranging from a specialized cloud service tailored for web3 developers to the ‘Google for Startups Cloud Initiative’—which offers industry builders up to $200,000 in cloud credits—Google is positioning itself as the premier infrastructure provider for the web3 community.

Lagging behind its two cloud computing competitors, there are reports that Google wants to use the growing developer base of web3 as leverage to catch up.

But what is the reason for all this interest? With an army of strategic advisors, these companies surely aren’t prodding on a dead horse here, right?

But what drives this enthusiasm? With a cadre of strategic advisors at the helm, it’s clear these companies aren’t chasing after an empty ideal. 

Indeed, market potential is a driving force. Last year, Web3 stood only second to Gen-AI as the most significant driver of cloud spending (source). 

Outside of diversifying their services and allocating capital to the ‘hot new tech’, however, their initiatives confirm that there is true potential in the tech.

At its core, this strategic push positions these tech giants as the go-to infrastructure providers, aligning with the anticipation of web3’s awaited ‘ChatGPT moment.’ As an industry, they are also uniquely positioned to comprehend Web3’s growth mechanics, having undergone their own period of product-driven expansion.

Cloud infrastructure,for example, existed for years before utility and investment surged—paralleling the current evolution in the web3 landscape.

Still, the narrative extends beyond mere timing.

This March, a Forbes report speculated that cloud computing could be one of the first mainstream industries that will experience drastic disruption due to web3, and vice versa. This space could be the springboard that brings web3 out of this winter.

And the value is real. Decentralization and blockchain pose incredible opportunities for cloud storage tech, emerging from the combination of the security of blockchain with the convenience of the cloud. From better using underutilized computing power, more trusted and transparent execution environments, drastic efficiency improvements and even Chip-to-Cloud tech which could completely revolutionize the IoT space, the potential is endless . Who better than the current tech giants to leverage this opportunity?

A Beware Note

To answer the above rhetorical question, maybe many are.

After all, the web3 space for many is the escape route from the clutches of tech monoliths -a portal to a world where data and privacy needn’t be relinquished in exchange for streamlined services.

To some, the idea of Google and Microsoft becoming the go-to solution for web3 infrastructure just doesn’t ring right.

Undoubtedly, this sparks an important conversation about whether this alignment is truly beneficial. In an industry striving to break free from reliance on tech giants and their data-for-service trade-offs, this shift seems incongruous, to say the least. 

Moreover, numerous web3-native companies, like IPFS, Filecoin, and 4everland, are pioneering innovative approaches to cloud storage, offering more ethically aligned alternatives. 

Still, the reputation of these industry titans carries inherent gravity, professionalism, and trust—qualities that the industry is currently yearning for. Consequently, many firms seek collaborations with them as a testament to their credibility.

And with many web3 native companies innovating upon cloud storage, like IPFS, Filecoin and 4everland, there seem many more morally-agreeable solutions coming up.

Still, the brand name of these firms comes with inherent gravity, professionalism and trust- key wounds which the industry is suffering from -which poses many firms to seek collaborations with them as confirmations of their legitimacy.

It is definitely a space to watch for its interesting dynamics. And, overall, all this movement acts as hope, that we are posed to see better days in web3, very soon.

Also Read: UNICEF’s Crypto Experiment: How DAOs Will Revolutionize Humanitarian Aid

[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]

Featured Image Credit: Chain Debrief

Author: Harry Vellios