Information at first glance seems purely technical. But this reflects a new significant acceleration of the giant in the blockchain universe, and with new decentralized services developed on the Ethereum protocol. Google is indeed announcing on its blog this Thursday October 27th the launch of a new cloud offering dedicated to the developers of these new blockchains, whose job it is to reinvent the world of intermediary-free exchange on the third generation of the Internet known as “Web3”.
Dubbed “Blockchain Node Engine”, this new Google cloud vertical should position the American in the next battle of the Internet, one that should give pride of place to new decentralized finance applications and its “smart contracts” (on which the Ethereum Protocol is at the forefront), cryptocurrency trading , NFT, as well as the metaverse and its private digital currencies.
To achieve this, the architects of these new services, the Web3 developers, need to build a network of verification “nodes” that link computers together and verify encrypted blockchain exchanges. However, as with traditional digital exchanges, these nodes generate data that must be hosted and stored in cloud data centers. This is where Google, which saw growth slow in the third quarter due to its historic digital advertising activity, wants to play its card. At the beginning of 2022, the acceleration of Google Cloud was already noticeable with the creation of a dedicated blockchain team united under the slogan “Digital Assets”.
Target Ethereum Developers
“Web3 companies that need dedicated nodes can relay transactions, deploy smart contracts, and read or write blockchain data with the reliability, performance, and security they expect from Google’s computing and network infrastructure,” the firm explains.
And I explain: “Ethereum will be the first blockchain supported by the Blockchain Node Engine, which will allow developers to provide secure access to the blockchain to fully managed Ethereum nodes.”
The Ethereum blockchain and its associated crypto asset Ether is the second most valuable protocol after Bitcoin, with almost $200 billion (compared to over $900 billion for the leader). In this battle of blockchain protocols that will make the applications of tomorrow, Ethereum is nonetheless the most widespread, with a large developer community. The purpose of this blockchain is to create a device that is more open than Bitcoin, and allows not only the exchange of digital tokens, but also other types of transactions, in particular, through “smart contracts”.
Thus, the challenge for Mountain View is also a business. Admittedly, Google Cloud is doing well: in the third quarter, its division continued to grow with $6.9 billion in revenue, compared to $5 billion in the same period in 2021. But cuts in companies’ advertising budgets are forcing the firm to rely more on its cloud business revenue to make up for it.
However, Google faces stiff competition in this segment. According to Canalys, cited by AFP, Google Cloud is the third largest cloud provider, well behind Amazon (AWS) and Azure (Microsoft), which won 55% of the pie in August. The latter have not been left out of Web 3 with the Amazon Managed Blockchain offering. In its Azure offering, Microsoft used the same acceleration.