Google’s new Layer1 platform is facing significant pushback from the crypto community. Named GCUL, the platform aims to enable cross-border payments and asset settlements via a distributed ledger.
Summary
- Users on X have criticized Google’s upcoming L1 for being a permissioned and private system.
- The platform aspires to be more open in the future and seeks to streamline cross-border payments and asset settlements using a distributed ledger.
In its primary blog post, Google Cloud’s blockchain is characterized as a “private and permissioned system” that utilizes Google’s technology. These principles contradict the decentralized and permissionless values foundational to the crypto community.
“GCUL provides substantial advantages for both clients and financial institutions. Clients can expect near-instant transactions, particularly for cross-border payments, along with low fees, 24/7 accessibility, and automated payments,” the company stated.
Despite the announcement expressing intentions to open the blockchain over time, traders on X have criticized the launch for seemingly opposing the core tenets of crypto.
“It’s a permissioned chain, operated by an American company closely tied to the government. I doubt these folks understand what ‘credibly neutral’ means in the blockchain context,” remarked one trader.
“Totally centralized? They shouldn’t even refer to it as blockchain,” stated another X user.
The controversial project has drawn remarks from Eli Ben-Sasson, CEO of StarkWare Industries, and Jon Charbonneau, co-founder of crypto investment firm DBA, who had just learned of the project.
“I believe corporations launching L1s is not gonna make it [ngmi]. Including base. I realize this perspective may be contentious. But I remind you, I voiced the same about Diem,” commented Ben-Sasson.
Insights into Google Cloud’s forthcoming L1
In a recent LinkedIn post, Rich Widmann, Head of Web3 strategy at Cloud, revealed details about the project still in its private testing phase. Widmann stated that the Layer1 blockchain is designed to support Python-based smart contracts.
“As a product leader in crypto, you know that for a Layer 1 to be viable, it must stand out,” Widmann noted in his post, likening the ledger to platforms like Stripe and Circle.
Moreover, the platform claims to be “credibly neutral” to enable any financial institution to utilize it for building on-chain infrastructure.
Currently, the L1 blockchain remains in its testing phase; however, its announcement suggests it will be accessible to the entire Google user base and “hundreds of institutional partners.”
According to the blog post, GCUL is aimed at streamlining the management of commercial bank accounts and facilitating cross-border transactions through a distributed ledger. It intends to incorporate multiple currencies and assets, thereby eliminating the need for additional infrastructure.
An additional feature mentioned is stable transaction fees, which will be billed to users monthly, contrasting with other crypto protocols known for their “volatile upfront crypto gas fees.”
So far, the company has not disclosed a specific launch date for the project.
