Google Is Said to Work on Blockchain-Related Technology

Google is working on blockchain-related technology to support its cloud business and head off competition from emerging startups, according to Bloomberg, citing people familiar with the matter.

Companies use blockchain and other so-called digital ledgers to securely record transactions and process other data over the internet. Google could use that service, for example, to reassure customers that their information is protected when stored on the giant network of computer servers that power its cloud services.

The Alphabet unit is developing its own distributed digital ledger that third parties can use to post and verify transactions, one of the people said. Although the timing of any product release is unclear, the company plans to offer this to differentiate its cloud service from rivals. It will also provide a white-label version that other companies can run on their own servers.

The internet giant has also been acquiring and investing in startups with digital ledger expertise. Many of the deals haven’t been announced, the person said. Still, Alphabet was a leading corporate investor in the field last year, ahead of Citigroup and Goldman Sachs, according to research firm CB Insights.

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.

Among tech giants, IBM and Microsoft have led the charge in offering blockchain-related tools and letting companies tinker with digital ledgers using their cloud services. The market for blockchain products and services may grow from $706 million last year to more than $60 billion in 2024, according to WinterGreen Research. Amazon helps companies build blockchain applications, and Facebook CEO Mark Zuckerberg is looking at cryptocurrencies, encryption and other decentralized computing approaches.

A slew of startups are trying to challenge Google’s online dominance by using digital ledgers. Brave is a web browser that competes with Google’s Chrome. Instead of running targeted ads, Brave uses blockchain technology to pay websites when people spend time there. BitClave lets people perform searches online, and get rewarded for seeing ads. Another project, Presearch, is also using blockchain to try to compete with Google’s search engine, according to a white paper by the startup.