Alibaba Cloud, the cloud computing branch of Chinese tech giant Alibaba, has created a launchpad to help companies build metaverse spaces on the decentralized blockchain platform Avalanche. Named Cloudverse, the platform offers companies an easy way to create and manage metaverse spaces to engage with their customers. The partnership is the second for blockchain for Alibaba in less than a month, following the agreement made on Mysten Labs and the Sui Layer 1 network.

Metaverses are virtual realities that become part of an ecosystem where each entity exists in its own separate space. The metaverse can be used for digital shopping, communicating, working and learning. While these digital spaces can be used for many things, the main purpose of setting up an online presence is to facilitate customer engagement. In order to make this work, the metaverse needs to be built on a reliable blockchain platform.

Avalanche provides the technology to build the metaverse spaces while Alibaba Cloud takes care of the computing and storage. This partnership is expected to provide a complete end-to-end solution for companies to launch any kind of virtual space. Mysten Labs also recently joined the partnership to provide node services for validators on the Sui Layer 1 blockchain testnet.

There seems to be little market reaction to the news, as the native token AVAX of Avalanche has risen only marginally, from $16.86 to $16.98 as of 15:20 UTC. This might indicate that customers are more optimistic about the potential of the partnership in the long-term.

This strategic collaboration is an affirmation of the fact that blockchain technology is becoming an essential part in companies’ digital transformation journeys. As the use of blockchain technology increases, more businesses are likely to take advantage of the availability of platforms like Avalanche and Alibaba Cloud’s launchpad since it simplifies the process for creating metaverse spaces. This is expected to result in an increase in the popularity of metaverses, which could have a profound impact on the way we communicate, work, and even shop.



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