To stay competitive with new startups using digital ledger, Google is working on developing a blockchain to support its cloud system, reported a Google spokesperson to Bloomberg.
Many companies are using blockchain because it can record transactions securely and in real-time, which makes transactions impossible to alter.
It would be beneficial for Google to use the blockchain technology, since it could give confidence to its clients that their information stored on the Google network is safe and secure.
Lately, Google acquired and invested in many startups specialized in decentralized ledgers, but many deals are still retained privately, Google executive told Bloomberg.
Other Google insiders also told that many individuals in the Google infrastructure group worked recently on developing blockchain protocols. Another person working at Google also mentioned that “cloud business is a natural place for blockchain-related services.”
“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,” reported a Google employee.
Google is also looking to expand the use of blockchain by possibly exploiting other properties of the technology.
“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,”according to Bloomberg.
When companies use decentralized ledgers, the information is distributed across many nodes, which makes it a distributed network, making it extremely secure.
For example, when a company like Google stores all of its customer data in a central location, it is easier to hack. This is why Google is starting fear their competition and wants to readjust.
A startup investor who already worked on early mobile projects at Google, Elad Gil mentioned: “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.”
Recently, Google Advertising Head, Sridhar Ramaswamy, mentioned that the company was doing research on how to apply the blockchain to its ecosystem but wasn’t ready to announce any product yet.
However, earlier this week, Google filed a blockchain patent application.