Alibaba Cloud, a division of Alibaba Group, has launched non-fungible tokens (NFTs) solutions even while the Chinese government takes a restrictive approach toward digital assets.
The computing company will also build NFT marketplaces, as well as web-hosting and content management.
Alibaba will assist users in creating NFT marketplaces
NFTs have gained a lot of attention in the digital asset markets lately. Alibaba Cloud mentioned that these tokens can represent ownership of unique items for both digital and non-digital assets, including concert tickets and invoices. As non-fungible tokens are irreplaceable. It helps NFT artists in monetizing their work.
According to the press release, Alibaba Cloud Elastic Compute Service (ECS) and auto-scaling would assist users in building an NFT marketplace. These digital assets will soon be exploding into the metaverse, said the computing company.
Major audience segments, according to its blog, are hesitant to fully embrace the potential that the metaverse can provide. However, according to a Harris Poll, only 38% of Generation Z respondents believe the metaverse is the next big thing. It added that the virtual world will become a part of our lives in the next decade.
China is enforcing strict regulations on digital assets
The Chinese authority has been issuing strong warnings about the risks of trading in NFTs. Meanwhile, cryptocurrencies are prohibited on China’s mainland. However, the government has stated that it has no plans to ban NFTs. This has prompted tech giants like Alibaba and Tencent to file new NFT patents in the past.
Meanwhile, WeChat Pay, a prominent Chinese application, recently blocked accounts that were buying such NFTs. According to reports, one of the projects that were removed was the Xihu No.1 digital collection platform. The government’s lack of transparency and confusion has kept the people on their toes.