Following their push to gain market share in industries like retail and health care, Google’s next venture is focused on a different sector – blockchain.

Google is in the process of assembling a team of highly qualified blockchain developers and experts in hopes to capitalize on the rising popularity of web3 technologies, such as decentralized finance (DeFi) and decentralized applications (dApps). Success in this venture could help Google further diversify away from their initial business model of advertising and push them further into the growing market for data center computing and cloud storage.

The general vision shared by most blockchain advocates is that decentralized applications will greatly reduce the control that centralized parties, like Google and Amazon, have on the digital services we use today.

In decentralized finance, banks and lawyers are replaced by programmable lines of code called “smart contracts”. This contract is stored on a publicly visible blockchain, such as Ethereum, and executes its functions only when specific parameters are met. This eliminates the need for a centralized party to oversee these transactions, as the code allows the process to happen in a completely trustless manner.

Google, who has come to acquire a major stake in many of the centralized web2 applications we use today, is theoretically quite the opposite of that decentralized vision.

However, Google does appear to understand this concern; Google’s head of strategy for digital assets Richard Widmann has stated, “we think that if we do our jobs right, it will drive decentralization,”. Clearly, the concern from the broader blockchain community is not enough to stop Google from attempting to capitalize on such an opportunity, as they push to hire several people with blockchain expertise.

Google has already begun offering tools for developers to build blockchain networks through its cloud marketplace, and has already acquired multiple customers in the blockchain space, such as Dapper Labs, Theta Labs, and several exchanges. According to Widdman, Google is now in the process of determining what types of services it may be able to offer directly to blockchain developers.

Widdman indicated that Google may be looking at ways to “reduce the friction” that some customers have when attempting to pay for centralized cloud computing with cryptocurrencies. He noted that the majority of foundations and entities that are currently involved in the development of digital assets are mostly capitalized with cryptocurrencies instead of fiat.

Other cloud providers, like Amazon and Microsoft, also have their eyes on the crypto markets, though none of them have yet announced the development of a dedicated blockchain team besides Google. Back in 2019, Microsoft had introduced a fully managed Azure Blockchain Service, but ultimately shuttered the project in September citing “lowered interest”.

Though as prices in the cryptocurrency markets continue to rise, many companies are reconsidering their stagnancy in the blockchain space. According to data from OKX, a major cryptocurrency exchange, Bitcoin’s price nearly touched $69,000 at its peak, piquing the interest of many corporations, from YouTube to Digital Ocean. Even Twitter is beginning to capitalize on the blockchain hype, introducing hexagonal profile pictures linked to NFT collections.