Google is reportedly working on its blockchain-related technology that will support the Silicon Valley giant’s cloud business. The switch from a traditional peer-to-peer based system to the blockchain model will help Google fend off competition from emerging startups.
The year 2017 belonged to Bitcoin, the cryptocurrency that gets rid of traditional banking methodology and relies on a network of computers for transactions. Bitcoin is powered by a decentralized and public ledger of transactions that cannot be manipulated, which is also known as blockchain. While Bitcoin trade has remained volatile in the past few months, the interest in blockchain-related technology has surged significantly with IBM, Microsoft an Toyota investing in the technology.
Google with its vast footprint in the cloud and digital space can use blockchain or other digital ledgers to secure transactions or data transmissions over the internet. According to Bloomberg, the Alphabet-owned Google is developing its own distributed digital ledger that third parties can use to post and verify transactions. While there is no clarity on any product release, the company plans to use blockchain as a technology to differentiate its cloud service from rivals Amazon and Microsoft.
Google is also planning to release a white-label version of its blockchain technology that other companies can run on their own servers. The search giant has been acquiring and investing in startups that are developing digital ledger systems and people familiar with the development claim many of these deals haven’t been announced yet.
Google cloud chief Diane Greene sees blockchain technology as the natural place for its cloud services and people in the infrastructure team are said to have started work on incorporating such a technology. “Like many new technologies, we have individuals in various teams exploring potential uses of blockchain but it’s way too early for us to speculate about any possible uses or plans,” a Google spokesman told the publication.
Switching to blockchain technology will eliminate the risk when the data is located centrally by a single company. However, building a mass network of digital ledger governed by multiple computers is rather difficult but it offers opportunities to eliminate potential data theft. It will also help with Google’s online services and especially with its new initiatives like supplementing digital payments in developing countries.