Whereas some have dubbed Google Cloud Common Ledger an “ XRP killer,” critics stay skeptical, arguing that its centralized management by Google runs counter to the core ideas of decentralization.
The Debate Over Centralization vs. Decentralization
The just lately launched Google Cloud Common Ledger (GCUL), a personal and permissioned blockchain, is being positioned as a safe platform for managing the complete lifecycle of digital belongings. Constructed on a “partnership mannequin,” GCUL is designed to enrich present enterprise frameworks quite than compete with them. Focused at monetary establishments, the platform guarantees vital advantages for each service suppliers and their purchasers.
Though some have dubbed GCUL an “ XRP killer,” its debut has left components of the business skeptical. Critics argue that irrespective of how massive or well-resourced a platform could also be, it can’t be thought of actually decentralized whether it is owned or managed by a single entity.
Others, nevertheless, see Google’s technical experience and monetary energy as key benefits. They counsel that quite than constructing a blockchain from scratch, niche-focused tasks could discover it extra environment friendly to launch on GCUL. This view is echoed by Luigi D’Onorio DeMeo, Chief Technique Officer at Ava Labs, who anticipates that well-funded, crypto-forward enterprises will more and more choose to deploy their very own Layer 1 chains.
“Because the market matures and demand will increase, most corporations is not going to be keen to construct a series from scratch and can as an alternative go for a stack corresponding to Avalanche, which permits them to launch their very own L1 in minutes,” DeMeo explains.
That perspective is challenged by those that reject the notion that permissioned methods qualify as blockchains. Yann Régis-Gianas, Head of Core Engineering at Nomadic Labs, argues that whereas Google could reach attracting companions to GCUL, its lack of decentralization means it features extra like a database than a blockchain.
Shahaf Bar-Geffen, CEO of COTI, shares this sentiment, asserting {that a} blockchain can’t be thought of public no matter its effectivity.
“Whereas GCUL is positioned as a Layer 1, its non-public and permissioned nature—managed solely by Google—diverges considerably from the ethos of public chains like Ethereum. A centrally managed chain like GCUL may provide larger effectivity for particular institutional use circumstances, however it is not going to inherit the advantages of being absolutely decentralized and ‘trustless,’” Bar-Geffen argues.
Is GCUL ‘Credibly Impartial’?
At its launch, GCUL was reportedly described by one Google government as a “credibly impartial” platform—a declare that sparked debate.
In written feedback to Bitcoin.com Information, Bar-Geffen referred to as Widmann’s neutrality declare “intriguing,” however questioned its feasibility. He famous that in a system the place Google controls node participation and probably information flows, true neutrality is tough to realize. Even when Google pursues impartiality by means of audits and requirements, Bar-Geffen warns that company pursuits might nonetheless affect selections. Centralized management, he provides, might lead to unilateral downtime or chain rollbacks.
Considered one of GCUL’s key promoting factors is its potential to handle the fragmentation that plagues digital finance. But critics argue that it could as an alternative deepen fragmentation by making a closed ecosystem restricted to Google’s companions. Régis-Gianas sees this as an extension of Google’s longstanding technique of constructing “walled gardens.”
“The true promise of blockchains is composability and interoperability. Each new walled backyard pushes us farther from that aim,” Régis-Gianas contends.
Bar-Geffen agrees, suggesting {that a} closed ecosystem round GCUL is a possible consequence given its permissioned construction and Google’s historical past in tech.
“This fragmentation undermines Web3’s core goal of worldwide interoperability, the place belongings and information circulate seamlessly throughout chains with out gatekeepers—although there are plans to hook up with the broader Web3 ecosystem for liquidity,” he provides.
