The search engine giant is working on blockchain-based technology to its cloud business. Google’s parent entity is using the technology to ensure the security of customer data stored on Google Cloud.
Alphabet Inc. is developing its own distributed digital ledger for third parties to post and verify transactions. The company is yet to share the release schedule of the new technology. However, Google will make sure to differentiate its cloud service from rivals. The company might offer a white-label version of the same product for other companies to use and run on their own servers.
Google engineers have been experimenting with blockchain protocol for quite some time. The company’s cloud business is a great fit for blockchain-related services. Google’s spokesperson said, "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.”
The company started testing blockchain services on its cloud in 2016. Google is now exploring new ways to deploy the technology on servers. Digital ledger technology that powers Bitcoin and other cryptocurrency have a large number of use-cases. These ledgers are databases that are updated across thousands of connection terminals on the network.
Google is taking a reference from Hyperledger consortium to build its ledger. Although Google’s security is strong, it continues to be one of the largest information holders in the world. Edal Gil, a startup investor that worked with Google said, “Any time there’s a paradigm shift like this, there’s an opportunity for new giants to emerge -- but also for incumbents to adopt the new approach.”
According to a person familiar with the development, Google is heavily acquiring and investing in blockchain-based startups. Many of the deals are yet to be announced but Alphabet remains to be a leading corporate investor in the tech field. In fact, Google has made more investment and acquisitions than Goldman Sachs and Citigroup.
The tech giant will face tough competition from a number of startups working in the Blockchain field. A web browser called Brave uses that compete with Google Chrome uses blockchain to pay websites when people spend time on them. The browser is trying to revolutionize the targeted ads market.