Google is likely to start working on blockchain-related technology for supporting its cloud business to prevent competition from new start-ups that use the technology to operate online in new ways.

United States: Google is getting into the blockchain business by creating a line of blockchain-related technologies to work with its various online services. Blockchain is used to power cryptocurrencies such as Bitcoin and is used for digital ledgers to securely record transactions and process other data over the internet.

Google is currently working on to create its own digital ledger which could be used for a variety of purposes, like securing customer data. Google is also planning to distribute its ledger to third parties for using it to post and verify transactions. Moreover, Google is planning to develop a white label version that other companies will be able to access on their own servers.

Within the past few months, several employees working in Google’s infrastructure group have been working on blockchain technologies. It is believed that the company’s line of cloud services is perfect for blockchain technology.

The Advertising Chief of Google, at a recent conference claimed that a small team in his division is looking at blockchain. However, he also stated that the existing core technology cannot do a lot of transactions quickly. A few marketing firms have started to explore blockchain’s potential to facilitate digital ad buying without using Google and Facebook Inc., which are the two key players in the industry.

The rise of blockchain technology will post opportunities and challenges for industry leaders such as Google. If properly leveraged, the technology will enable Google with a more secure way of storing user data, which could be a huge advantage for the company and its customers alike. However, the rise of blockchain technology will facilitate start-ups to compete with Google and undermine its market leadership, which is a huge challenge for the company.

According to TechSci Research, Blockchain technology helps to resolve challenges that arise with transaction speed, verification process and data limitations. Blockchain technology enables disintermediation, enabling an exchange between two parties without the any intermediation of a third party, thereby strongly eliminating the counterparty risk. The Blockchain Market will see a robust growth in the coming years as a result of rising awareness about the blockchain solutions among the fortune 500 companies coupled with rapidly increasing FinTech spending across the globe. With a surging number of multinational financial institutions across the world adopting blockchain technology, the global blockchain market is on a strong upswing.

According to the recently published report by TechSci Research, “Global Blockchain Market, By Type (Private, Public, & Hybrid), By Application (Financial Vs. Non-Financial), By Enterprise (Large Vs. Small), By End User (BFSI, Corporate, Government, and Others), Competition Forecast & Opportunities, 2012 – 2022”, Global blockchain market stood at around $ 215 million in 2016, and is forecast to grow at a robust CAGR of more than 43% to reach $ 4.2 billion by 2022, on account of widespread implementation across numerous areas such as Internet of Things (IoT), banking & financial institutions, healthcare, media & entertainment, energy, retail, etc. In addition, rapid increase in FinTech spending, predominantly on technologies used in the financial services sector, is expected further propel market growth in the foreseeable future.

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