Google looks to blockchain expansion to diversify revenue
Google Cloud is set to develop business use cases for developers of blockchain technology in a bid to add more revenue streams to Alphabet, Google’s parent company
Alphabet has long relied on its advertising revenue from its products to turn a profit — such as Google and YouTube — and sees blockchain applications as a way to add new revenue streams
Google’s Cloud Group is set to go on a hiring drive to expand its team for blockchain development. Richard Widmann, Head of Strategy for Digital Assets at Google Cloud, said “We think that if we do our jobs right, it will drive decentralisation”
Google already has some experience in blockchain development having worked with Hedera, Theta Labs and Dapper Labs.
The search engine giant is set to work on solutions to help support blockchain developers, according to Widmann. This could include tailored cloud services for blockchain apps and accepting crypto payments for Google’s services. According to Widmann, blockchain development could assist in Google’s expansion into the healthcare, retail, finance and other sectors as customers look to utilise blockchain tech.
83% of Google’s revenue for Q3 last year came from advertising, so the company’s desire to diversify its revenue streams could be due to concerns over the direction of the global economy. A hike in the cost of living will likely decrease consumer spending and could hurt Google’s advertising revenue as a consequence.
There is also enthusiasm for blockchain amongst Alphabet’s businesses. YouTube CEO, Susan Wojcicki, said she saw Web3 as an inspiration for the video-sharing platform.
“The past year in the world of crypto, non-fungible tokens (NFTs), and even decentralised autonomous organisations (DAOs) has highlighted a previously unimaginable opportunity to grow the connection between creators and their fans”.
To learn more about blockchain technology, check out our guide!