Google has long monopolized the Internet search market, but according to experts, blockchain will become a catalyst for global changes in the spheres of influence of the largest technology company of the 21st century and will completely change the world in which Google dominates supreme.
About Google / Alphabet
Google was founded in 1998 by Larry Page and Sergey Brin for organizing world information and ensuring its accessibility and benefits for all. Today, the company and its subsidiaries are part of the Alphabet holding company, which manages and invests in the development of Internet searches, cloud computing, and advertising technologies. In 2017, Alphabet became the largest holding company in the world by market capitalization amounting to more than $645 billion.
Over the 20 years of its existence, Google has developed a huge number of Internet services, tools, and products that rank among top competitors. Search engine, Chrome browser, Gmail mail service, Android mobile operating system, YouTube video-sharing service, Google+ social network, cloud storage services, as well as AdWords and AdSense pay-per-click advertising services. The development and mass adoption of blockchain, however, can significantly affect the activities of Google, especially in areas such as search services, advertising, and video hosting.
Blockchain and Google Search Engine
More often than not, users prefer the Google search. As a result, to date, the company owns ¾ of the market share, about 74.52%. The dominant position of Google is largely related to the development of the network Big Data effect and artificial intelligence in conjunction with the power of user habits.
Google search engines constantly collect and update information about users, which is used not only to promote and improve the company’s products and services but is also sold to representatives of the advertising and marketing industries. This aspect often leads to criticism from the representatives of the technical community who accuse Google of violating the inviolability of personal information and copyright and the introduction of censorship, as well as the destruction of the notion of absolute confidentiality.
The decentralized browser and blockchain search engine will be able to solve the problems of protecting users’ personal information in the following way: the search engine will analyze user data and their preferences in order to produce more accurate results without transferring data to third parties. The users of such systems will be able to fully control access to their personal data and selectively share information about themselves and their search queries.
Moreover, such search engines will form the basis of a new decentralized Internet network or Web 3.0, which will distribute high-quality content and services created by network users. Projects in Web 3.0, which are responsible for communications, publications, and search and storage of data will be built upon technologies that are supported by individuals, rather than one corporation.
Currently, the crypto market already offers decentralized search platforms within the framework of projects such as Bitclave and Presearch. Both projects conducted successful ICOs in 2017 in support of their platforms. Moreover, the ICO of the decentralized Bitclave ecosystem attracted $25.5 million in a record 32 seconds.
Blockchain and Google Advertising Services
Google, together with Facebook, has a top position in the field of digital advertising, controlling 84% of the market. Google received most of its profits from advertising. During the past year, 70.9% of the company’s revenues were received from the AdWords and AdSense advertising services.
It is, however, Google’s advertising activity that arouses the greatest fears not only among representatives of the technical community but also among regulators from different countries. In June 2017, the European Commission imposed a record fine of €2.42 billion on the company, accusing it of abusing its dominant position in the market. According to the 7-year investigation of the European Commission, Google violated anti monopoly-legislation by systematically placing its own and partner resources on privileged positions in search engines.
Using blockchain and decentralized search engines will primarily help protect user information. At the same time, users can decide for themselves what information to provide to advertisers in exchange for cryptocurrencies, thereby directly selling their own search queries or personal information. In turn, companies will pay the user directly for viewing the advertising content, not third parties, one of which today is Google.
Blockchain is beneficial for the advertisers themselves. Thus, companies will be able to solve the problem of ineffective advertising. In 2017, more than $209 billion was spent worldwide on digital advertising, of which $6.5 billion was spent on content viewed by bots. Using blockchain, advertisers will receive a transparent network in which all transactions are easily traced, and can thus make sure that the advertising content will reach the consumer.
Platforms such as adChain, AdEx, MadHive, MetaX, Papyrus, and Truth are already working on the creation of a decentralized advertising platform, which will offer advertisers a new format for implementing digital advertising.
Blockchain and Youtube Video Hosting
Founded in 2005, Youtube was acquired by Google in 2006 for $1.65 billion. Due to its ease of use, YouTube has become the most popular video hosting and the second site in the world by the number of visitors. Every minute about 100 hours of video content from around the world are uploaded to the site, and more than 1 billion people visit it every month.
Google does not provide detailed information on current spending and revenues from YouTube. According to a study by Credit Suisse in 2015, YouTube and Google Play accounted for about 15% of Google’s revenue, and by 2020 this figure will reach 24%.
YouTube provides a platform for hosting video content and earning on advertising placement. As for content creators, they only have a percentage of the total revenue from advertising on YouTube. So, starting from February 2018, for content to generate revenue for its creators, it is necessary for the channel to have at least 1 thousand subscribers and at least 4 thousand views over the past 12 months. And this means that not all creators of content will receive profit at all. Also, according to an analysis of experts, the average CPM (Cost Per Millennium or cost per 1,000 views) varies from $0.50 to $5.00. And this means that for every million views, content creators get from $500 to $5,000.
Platforms for video hosting on blockchain will allow creating a more profitable ecosystem. Using such platforms, content creators will profit from the number of views directly from advertisers. Users will also receive cryptocurrencies for viewing, and the higher their activity, the greater the compensation.
The crypto market already offers video hosting platforms, such as SteemQ, Viewly, and Dubtokens.
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