Google Creates New Blockchain Unit for Web3 Relevance
To explore the possible applications of blockchain technology, Google is said to have established a dedicated blockchain team. Until now, the IT sector has been apprehensive about the potential of blockchain, but this move might imply that this is set to change with the emergence of Web3 and the metaverse.
According to an internal email reviewed by Bloomberg, the new section will be housed under Google's 'labs' division, which is home to Google's virtual and augmented reality initiatives, and will be headed up by engineering vice president Shivakumar Venkataraman. Google was unavailable for comment.
Experts believe this new division will be Google's most significant investment in blockchain to date, and they believe it represents the expanding potential of the technology.
What To Know About Google Blockchain Unit?
For the second time, Google's cloud division has launched a group to develop a business around blockchain applications. To further diversify away from advertising and become more prominent in the burgeoning market for distant third-party data centers, success might assist Google.
Decentralized applications, according to proponents of blockchain technology, eliminate the need for massive middlemen. DeFi (short for "decentralized finance") is a fast expanding segment of the crypto industry that attempts to eliminate intermediaries like banks from regular financial operations like procuring a loan.
Even yet, Google isn't going to let that deter them from seizing an opportunity. Richard Widmann, director of the strategy for digital assets at Google's cloud business, said the cloud company aims to employ a large number of individuals with blockchain experience.
Decentralization will occur "if we perform our duties well," the narrator stated.
Blockchain companies including Dapper Labs, Hedera, and Theta Labs, as well as exchanges, already use Google's cloud marketplace to access tools for developing blockchain networks. Google's BigQuery service may also be used to look at transaction data for bitcoin and other currencies, as well.
Widmann noted that Google is now examining what kinds of services it may provide directly to blockchain developers.
Extreme Interest In Crypto
No one else except Google has announced the formation of a blockchain business group for other cloud providers that have also become crypto-curious.
Cloud infrastructure market leader Amazon Web Services unveiled a managed blockchain solution in 2018, according to technology industry analyst Gartner. On the AWS service's official website, Accenture, AT&T, and Nestle are listed as clients, among others.
An Azure Blockchain Service released in 2019 by Microsoft, which Gartner predicted would have a 19.7 percent market share in 2020, was terminated last September due to "reduced demand," according to the company's blog post.
Additionally, smaller cloud service providers are cognizant of the possibility that exists here as well. According to DigitalOcean's chief product officer Gabe Monroy:
"We've had a lot of blockchain and crypto clients on the platform. We're keeping a careful eye on the area.”
Software developers are also being catered to by cryptocurrency firms. Under the title Coinbase Cloud, the cryptocurrency exchange operator Coinbase has unveiled a plethora of new services that can operate on several clouds. Coinbase CEO Brian Armstrong noted:
“How can we store crypto, combine the various blockchains, monitor transactions for anti-money laundering (AML) reasons, and conduct trading and stake operations?"
For now, the founders of a new tech company in San Francisco According to CNBC, Alchemy hopes to be compared to AWS in the blockchain space in the not too distant future. In October, Alchemy revealed that it had received $3.5 billion in venture money.
YouTube's CEO, Susan Wojcicki, recently said in a letter that the video site was influenced by Web3.
In the third quarter, advertising revenue accounted for 82% of Alphabet's total revenue. Revenue from the company's cloud services increased by almost 45 percent to $644 million in operating losses. In 2020, Gartner predicted that Google will have 6.1 percent of the market.
Although Facebook and Twitter have made significant investments in blockchain, the Big Tech giants like Google and Amazon have business models based on the centralized management of internet platforms and services.
Even while Google's entry into the blockchain space as a possible major player may not be warmly received by the community, adjunct associate professor Lory Kehoe argues its presence will have certain advantages. According to him, Google's "credibility, size, and users" are all advantages. All of these factors indicate a rise in adoption.
"At the same time, there are a lot of purists out there who believe in the decentralized world, which means Google has to put a new story out there," he says:
"Google needs to put a new narrative out there. It won't be taken seriously if it simply keeps doing what it's doing now and says 'we're decentralized.”
Kehoe, on the other hand, argues that end customers are less worried about whether the goods and services they use are completely decentralized. "Even if the service is not as decentralized as it could or should be, people will go there if [Google] offers services that are simple for us to use, fill a niche in the market, and address our issues," he argues. "That's Google's strength."