Following efforts to grow in retail, health care, and other industries, Google’s cloud division has formed a group to build businesses around blockchain functions.
Success may help Google expand its business beyond advertising and establish itself as a leader in the growing market for computing and storage services provided by third-party data centers.
DeFi’s impact on finance
Typically, proponents of blockchain talk about building decentralized functions that eliminate the need for large intermediaries. Decentralized finance (DeFi) is a rapidly growing area of the crypto market that aims to eliminate middlemen, such as banks, from traditional monetary transactions such as acquiring a mortgage.
A programmable piece of code called a sensible contract is used by DeFi to swap banks and legal professionals. This contract is formed on a public blockchain, such as Ethereum or Solana, and it runs when specific conditions are satisfied, eliminating the need for an intermediary.
Decentralized – everywhere!
Decentralized apps have grown in popularity amongst programmers who foresee Web3, a decentralized variant of the internet that differs from Web 2.0, which saw a boom of user-generated content such as blogs and social networks. Some of these services were eventually purchased by major internet players, such as Google, who bought Blogger and YouTube (one of Google’s biggest companies now).
Today, Amazon, Google, and other cloud-computing providers exemplify centralization by operating massive facilities that supply computer services for hundreds of thousands of customers.
Google’s cloud market place
Google’s cloud marketplace already includes tools for developers to start building blockchain-based networks, and it has blockchain users such as Dapper Labs, Hedera, and Theta Labs, as well as exchanges. Google also provides datasets that people can access through the BigQuery tool to view transaction history for Bitcoin and other currencies.
According to Widmann, Google is now considering what kinds of blockchain-related services it may provide developers immediately.
Widmann remarked that there are “things we can do to ease the frictions certain clients have with paying for the centralized cloud using bitcoins.” Cryptocurrencies are mostly used to fund foundations and other businesses working on digital property development, according to him.
Healthcare, retail, and three other industries have been designated as priority areas by Thomas Kurian, Google’s cloud CEO. Google can support clients in these industries that choose to use blockchain technologies, according to Widmann.
Microsoft launched a fully managed service from Azure Blockchain Service in 2019 but discontinued it in September, citing “reduced demand” in a blog post, according to Gartner. Microsoft has a 19.7% market share in 2020, according to Gartner.
Cryptocurrency companies building softwares?
Software developers are increasingly being catered to by cryptocurrency companies. Coinbase, a cryptocurrency exchange, has unveiled a bevy of services under the Coinbase Cloud brand, describing the tools as “capable of functioning on a variety of clouds.”
Coinbase CEO Brian Armstrong said at the JPMorgan Crypto Economy Forum in November, “This is kind of like our AWS for crypto.” “We’re attempting to outsource a few of the services we’ve had to develop.” How do we store crypto, integrate all the blockchains, monitor transactions for AML purposes, do trading and staking, and all that?” “A bunch of hard designing has gone into how do we market crypto, integrate all the blockchains, monitor transactions for AML purposes, and do trading and scoping and all that.”