Google’s cloud computing division announced the formation of a blockchain team to build services for developers running blockchain applications. The company claims the move is aimed at capitalizing on the opportunities presented by cryptocurrencies and related projects.
The idea is to make Google Cloud Platform the go-to choice for Web3 developers, Google Cloud vice president Amit Zavery told employees in an email Friday. “While the world is still in the early stages of embracing Web3, this market has shown great potential, with many customers asking us to add support for Web3 and cryptocurrency-related technologies,” he wrote.
The pioneers of Web3 have created a set of decentralized peer-to-peer systems that they hope will form the next generation of the Internet. It’s a trend that challenges the status quo of the internet, which is controlled by big companies like Amazon, Google, and Facebook’s parent company Meta Platform.
As it battles Alibaba, Amazon, and Microsoft for market share in cloud infrastructure, Google wants to offer back-end services to developers interested in building its own Web3 software. “We’re not going to jump right into the cryptocurrency bandwagon, but rather provide technology to others to take advantage of the distributed nature of Web3 in their current business,” Zaffrey said in an interview.
Zaffrey is a former Oracle executive who joined Google Cloud in 2019. A few months ago, Google named Oracle’s president of product development, Thomas Kurian, as the new head of its cloud division.
By forming an in-house development team for Web3 tools, Google is taking the next step to deliver on its promise. In January, with the rise of NFTs, Google Cloud announced plans to form a digital asset team to work with clients. The company said it is studying how customers can pay with cryptocurrencies.
Going forward, Zaffrey said, Google could design a system that other companies could use to make it easier for people to explore blockchain data while simplifying the process of building and running blockchain nodes to verify and record transactions. He added that Google’s tools can run in other computing environments, such as Amazon’s AWS.
Enthusiasm for the mature cryptocurrency has faded this year as investors pull back. The price of bitcoin has fallen 21% so far in 2022 as of Thursday evening local time in the United States, underperforming the S&P 500, which has fallen about 13%. But Zaffrey said that blockchain applications continue to enter the mainstream and are increasingly relevant in industries such as financial services and retail.
Nike CEO John Donahoe told analysts on a conference call in March that the footwear company plans to build Web3 products and experiences.
Warner Music Group is also interested, with CEO Steve Cooper saying on the first-quarter earnings call: “From collectibles to music rights, Web3 represents an exciting future for the music industry. It will help our artists reach millions of new fans in a fun and innovative ways.”
James Tromans, a former Citigroup executive who joined Google in 2019, will lead the new team’s product and engineering divisions and report to Zaffrey. Zaffrey said the team will bring together employees involved in the development of Web3 tools both internally and externally.
Google lags behind Amazon and Microsoft in cloud computing, but the business is growing faster than its core advertising unit. Alphabet Chief Financial Officer Ruth Porat said last week that the fastest growing headcount is in the cloud division.