Tech giant Google is working on blockchain related technology to support its cloud and give competition to the emerging startups that use the heavily hyped technology to operate online in new ways. – According to the people involved in the situation.
Many companies use blockchain and other so-called digital ledgers to securely record transactions and other sensitive data over the internet. A service that googles cloud use, for assuring the people that their data is safe in our directory.
Several people in Google’s infrastructure group, which reports to cloud chief Diane Greene, have been tinkering with blockchain protocols in recent months, according to another person familiar with the company. Other Google insiders said recently that the cloud business is a natural place for blockchain-related services. The people asked not to be identified talking about the subject because the company isn’t ready to make an announcement yet.
“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 said.
In 2016, Google started a trial for developers testing blockchain services on its cloud. The company is now exploring much more expansive ways to deploy the technology, the people said.
Digital ledgers like blockchain power Bitcoin and other cryptocurrencies. They are databases that are updated regularly across thousands of computers over the internet. Each entry is confirmed by these machines, which can be part of public networks or run privately by companies. There are different kinds of digital ledgers — blockchain is only one. Data crunched by this technology range from transactions to supply-chain updates to digital cats.
The technology presents challenges and opportunities for Google. Distributed networks of computers that run digital ledgers can eliminate risks that come with information held centrally by a single company. While Google’s security is strong, it’s one of the largest holders of information in the world. The decentralized approach is also beginning to support new online services that compete with Google.
Still, the company is an internet pioneer and has long experience embracing new and open web standards. To build its ledger, Google has looked at technology from the Hyperledger consortium, but it could opt for another type that may be easier to scale to run millions of transactions, one of the people familiar with the situation 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,” said Elad Gil, a startup investor who worked on early mobile projects at Google more than a decade ago.
Sridhar Ramaswamy, Google’s advertising chief, said at a recent conference that his division has a “small team” looking at blockchain, but noted the existing core technology can’t handle a lot of transactions quickly. Some marketing firms have started to explore blockchain’s potential to facilitate digital ad buying without using Google and Facebook Inc., the two dominant industry players.