Today, the Tron foundation sent out a tweet with regards to the much publicized Baidu deal. The tweet stated that Tron is joining forces with Baidu to provide blockchain solutions on the Baidu cloud.
This will make blockchain solutions more accessible to users. However, from the comments the tweet received, it is clear that most people are focused more on the technicalities of the deal, than its strategic implications. Most of them argue that since Tron is paying for Baidu’s cloud services, it is not really a partnership. Tron is more like a customer to Baidu’s cloud services. Here are some of their sentiments.
This Baidu –Tron deal is quite similar to the deal between Qtum and Amazon web services, where Qtum is more of a customer to Amazon cloud services than a partner. However, focusing on the technicalities of these deals may not be the best approach for investors.
The bigger picture
The best approach is to look at these deals from a long-term perspective. That’s because crypto in general is still in its infancy. It is foolhardy to believe that global corporations will enter into long-term, fundamentally significant deals with blockchain projects in the short-term. Even XRP which has made extensive moves in the finance industry is yet to loop in any bank to use XRapid. As such, any move that pushes cryptos towards mass adoption should be appreciated.
For instance, this move by Tron to start using Baidu cloud services will play a huge role in bringing to the fore the use value of the Tron blockchain. This will come in the form of efficient Tron-based applications offered as a service through the Baidu cloud. As people gain access to these services and find out how good they are, demand will rise. That’s how mass adoption will come. This will also create a stepping stone for more concrete and fundamental partnerships between Tron and Baidu, as well as with other major corporations. Long-term, these companies will be the ones coming to Tron (TRX) seeking partnerships, after it has proven itself in the market.
On top of that, partnerships such as this one with Baidu offer an opportunity for the Tron blockchain to be tested in the real world. Since these companies have hundreds of millions of users, it will be easier to test the capabilities of Tron applications in a real-world environment. This will allow for more refinement and ultimately, the emergence of world changing applications on the Tron blockchain. The result will be mass adoption in the long-run, and that’s pretty much the end goal of Tron and all other blockchains out there.
Clearly, the long-term, the prospects of Tron (TRX) are good, as more of these partnerships come up. Even in the short-term, Tron (TRX) is one of the more bullish coins in the market today. This goes to show that the Baidu announcement has been received well by the market. As more of these deals come up, Tron (TRX) will definitely be one of the better performers in the market both in the short and the long-term. It’s slowly shaping up as a good long-term investment.