Thomas Kurian, chief executive of cloud services at Google LLC, speaks at the Google Cloud Next event in San Francisco on April 9, 2019.
Michele Corto | Bloomberg | Getty Images
by Google The cloud unit is forming a team to build services for developers running blockchain applications as the company seeks to take advantage of the growing popularity of cryptocurrencies and related projects.
Amit Zavery, vice president of Google Cloud, told employees in an email on Friday that the idea is to make Google Cloud Platform the first choice for developers in the field.
“Although the world is still in the early stages of adopting Web3, it is a market that is already demonstrating tremendous potential with many customers asking us to increase our support for Web3 and Crypto related technologies,” he wrote.
Pioneers of Web3 they have created a series of decentralized, peer-to-peer systems that they hope will form the next generation of the internet. It is a philosophy that challenges the current state of the web, controlled by large companies such as Amazonparent of Google and Facebook Meta Platforms.
Google wants to offer back-end services to developers interested in composing their own Web3 software as the company struggles for market share in cloud infrastructure against AlibabaAmazon and Microsoft.
“We’re not looking to be directly part of that cryptocurrency wave,” Zavery told CNBC in an interview. “We are providing technologies to companies to use and exploit the distributed nature of Web3 in their current businesses and enterprises.”
By building an internal team for Web3 tools, Google is taking the next step to demonstrate its commitment to the market. In January, Google’s cloud unit plan revealed for a Digital Assets Team to work with clients, following the emerging growth of non-fungible tokens, or NFT. The company said it was looking into how customers could make payments with cryptocurrencies.
Moving forward, Google could devise a system that other companies could use to make blockchain data easy for people to explore, while simplifying the process of creating and running blockchain nodes for validating and logging transactions, Zavery said. You added that Google’s tools can work in other computing environments, such as Amazon Web Services.
Enthusiasm around bitcoin, the most established cryptocurrency, has gradually shrunk this year as investors have moved away from risky assets. At the end of Thursday, bitcoin has fallen 21% so far in 2022, underperforming the S&P 500, which has fallen by around 13%.
But blockchain applications continue to make their way into the mainstream and have growing relevance in industries such as financial services and retail, Zavery said.
“From collectibles to music royalties, Web3 represents an exciting future for the music industry that will help our artists reach millions and millions of new fans in exciting and innovative ways,” said CEO Steve Cooper during the call on the company’s first quarter earnings.
James Tromans, a former Citigroup An executive who joined Google in 2019, will lead the product and engineering group and report to Zavery. The team will bring together employees who have been marginally involved in Web3 internally and on their own, Zavery said.
Google follows Amazon and Microsoft in cloud computing, but the company is growing faster than its main ad unit. CFO Ruth Porat alphabet said last week that the fastest growth in the number of employees is within the cloud division.