Google is developing its own blockchain-based distributed digital ledger. Although the blockchain technology is used to power cryptocurrencies, Google has no intention to do so. Instead, the company is developing this technology so that it can secure its customer data and third-party companies can use it to post and verify transactions.
Within the past few months, so many employees working within Google’s infrastructure group have been working on the blockchain, considering its cloud services a natural fit for blockchain technology. There is no official announcement from the tech giant, but a company spokesperson confirmed its investment on this technology.
“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,” a Google spokesperson told Bloomberg.
For companies like Google, the rise of blockchain technology is both beneficial and challenging at the same time. It could provide Google with a more secure way to store user data when properly leveraged. On the other hand, startups can use this technology to compete with Google. So, unless the tech giant is planning to buy them out, it’s going to be a challenge for Google to deal with the rivals.