While Deutsche Telekom’s support for blockchain initiatives is welcome, Chirp founder and CEO Tim Kravchunovsky believes it could go further to help foster wider blockchain adoption. Chirp is a decentralized telecommunications network. Kravchunovsky said Deutsche Telekom should offer more support for budding DePIN projects as the telecom giant ventures into blockchain.
He also cautions against reliance on heavily centralized structures in the wake of the recent Microsoft and Crowdstrike fiasco.
“Deutsche Telekom is head and shoulders above its competitors when it comes to getting involved in Web3, and last week’s announcement that it will become a master node for the XDC network marks yet another move to consolidate its position,” Kravchunovsky said this week. “Other players in the telecom sector could certainly take a leaf from its book and embark on blockchain ventures of their own. This is a move that will undoubtedly pay off in terms of profitability, but also in terms of propelling the telecom sector into the future.
But while Deutsche Telekom’s ongoing involvement in Web3 is a trailblazing development, it isn’t without concerns. For one thing, the recent Microsoft update fiasco shows the catastrophic effect of relying too heavily on centralized models. According to estimates, the CrowdStrike incident – which took an estimated 8.5 million Microsoft devices offline across hospitals, banks and airports – will cost Fortune 500 companies upwards of $5 billion in lost revenues.
Kravchunovsky explained that large corporations such as Deutsche Telekom delving into Web3 legitimizes much of what is taking place in the space. However, that embrace should not cause the industry to forget its decentralized roots, and why said roots are vital.
“In addition, while running nodes for blockchains is great, it would be good to see the European telecom giant sponsor more hackathons and offer grants to smaller projects building decentralized alternatives to promote a healthy, diverse, and competitive DePIN ecosystem,” Kravchunovsky concluded.
