Google Cloud has taken its first big step in the development of the blockchain infrastructure with the launch of the Google Cloud Universal Ledger (GCUL), a Layer 1 network that is designed to support faster payments and settlement between borders.
The initiative places Google directly on the path of global financial institutions that are looking for scalable ways to process digital money and tokenized assets.
The network is currently working in a private test network and further technical details will soon be provided.
What is GCUL?
Rich Widmann, who leads Google’s Web3 strategy, formed the product as a neutral layer. He argued that institutions will probably not accept payment block chains that are checked by direct competitors, but GCUL’s design enables each bank or processor to participate without giving control.
He said:
“Gcul is a neutral infrastructure layer. Tether will not use the circle blockchain – and Adyen will probably not use Stripe’s blockchain. But any financial institution can build with GCUL.”
Given this, the company said GCUL is intended as a basis for applying new financial services and capital markets.
The system is intended to simplify account management and at the same time give banks and intermediary tools to automate complex transfers by placing commercial bank money and digital assets on a shared ledger.
In contrast to public block chains that depend on volatile gas costs, GCUL is offered as a service that has access to a single application programming interface (API).
This approach removes the need for participants to maintain their infrastructure and keeps the costs predictable with monthly invoicing.
Gcul used
Google explained that the network was designed to process multiple currencies and activation types, allowing users to connect to the system without large technical overhead.
The ledger is programmable, which means that settings can immediately build payment automation and digital assets work flows. Wallet integration is supported and transactions are governed by compliance requirements such as Know-Your-Customer (KYC) verification.
The system promises end users cheap, near-instant transactions at any time of the day. For banks and payment providers, the reconciliation work reduces, minimizes fraud risk and streamlining compliance.
Google said that this efficiency should enable institutions to spend more resources on product development, while maintaining the ownership of customer relationships and legal supervision.
Google revealed that GCUL will support smart contracts based on python, which have already been used in a pilot for Tokenized assets with CME Group.
