Bad news for Google… Good news for Presearch, its Blockchain rival
Ad-based businesses have come under intense scrutiny lately:
Snap inc. (NYSE:INSTANTANEOUS) has just warned that its Snapchat app’s second-quarter revenue and earnings don’t sound as previously expected – and that it’s being treated like a “canary in the coal mine” for the entire stock group . Google (NASDAQ:GOOG), for its part, is always awaited to see 15% revenue growth in the second quarter, with earnings roughly flat.
But Google has its own issues, in the form of the US Senate Judiciary Subcommittee on Competition Policy, Antitrust and Consumer Rights.
The senators are plotting an antitrust attack on Google. Their new bipartisan bill – backed by the likes of Senator Amy Klobuchar and Senator Ted Cruz – is called the “Digital Advertising Competition and Transparency Act”. And like The Wall Street Journal announced Thursdaythis “would likely force Google to divest a significant portion of the digital advertising business it created”.
“When Google simultaneously serves as seller and buyer and runs an exchange, it gives them an unfair and unfair advantage in the market, which doesn’t necessarily reflect the value they provide,” the subcommittee chair said, Senator Mike. Lee said The Wall Street Journal. Under this bill that he introduced, Google can no longer “wear all of these hats simultaneously”. (And the Metaplatforms (NASDAQ:Facebook) formerly known as Facebook.)
Right now, most of Google’s business operations are targeted by trust busters:
Nearly every state attorney general — along with other congressional bills — is attacking Google’s search engine practices, for self-preference, as well as the Google Play store. Antitrust bills on these topics are “very close to becoming law, probably by the end of the summer.” Voice reports. So why not this new one to completely break Google’s advertising business?
For the first time in 20 years, we can ask ourselves: what would it look like if Google was not our only gateway to the Internet?
Enter pre-search (PRE-USD)
Small businesses these days often rely on Google Ads for their marketing, but they certainly don’t want to end up on Google’s bad side. That’s what Colin Pape found as CEO of ShopCity.com: an e-commerce network to connect local businesses to their community.
As a guest on Untold Storieshosted by Charlie Shrem from our Crypto Investor Network, Pape recounted how ShopCity began working with business owners, journalists and local government in Mountain View, California. (Yes, the hometown of Google!)
Then: “We ended up waking up one day in July 2011 and all of our websites were sort of on page 8 of Google.” How many times do you even look at page 2? It was a death sentence for ShopMountainView.
Fortunately, a prominent antitrust attorney named Gary Reback took on ShopCity’s case, Pape explained. “We ended up getting a resolution, thankfully, through Google – but we realized how much market power they had and how much control they had over the internet as a whole.”
Finally, in 2017, Pape and two other co-founders saw the possibility of creating an alternative search engine – on Ethereum (ETH-USD) – which they named Pre-search (PREUSD).
Presearch launched on its “testnet” at the end of 2020. Tomorrow, Presearch switch to “main network” with 3.8 million registered users. The project offers a search portal, Presearch.com, as well as mobile apps for iPhone and Google Play, where your searches are private – and you earn PRE crypto for doing them.
Below we see how the launch event has bounced back strongly on PRE from its lows since the Earth (LUNA USD) crypto disaster:
“Obviously Google has done a great job, product-wise. A lot of people use Google products and love them,” says Colin Pape, but there’s “a lack of accountability. A lack of involvement community.
And because Google has a monopoly worth $250 billion a year already, they don’t want to rock the boat and innovate to keep up with the changing times. “There may be different research paradigms that just won’t be explored, because they had better not, right?” Pope argues.
To fill this gap and provide a better alternative, Presearch operates as a community and not as a traditional company. Anyone can come and create a new widget to help Presearch display the type of results they or they want to see.
Blockchain data, for its part, is notably lacking at Google. You need to know which site can give you what you want: Etherscan, CoinGecko, CoinMarketCap… But on Presearch, the data from these sites is already integrated into your search results. The results page will not be dominated by advertisements… And the more you use Presearch, the more you are rewarded with PRE crypto.
Google, for its part, has made some small gestures towards the future of crypto, like encouraging Web3 developers use Google Cloud…But incorporating cryptocurrency directly into Google seems very unlikely after Mark Zuckerberg unsuccessful efforts with Libra. Regulators really don’t want Big Tech getting into the crypto game — and clearly, Google is already fighting regulatory battles on enough fronts.
Meanwhile, Presearch has been running through native cryptocurrency from the start. And because its users, developers, network operators, and business partners are all PRE token holders, their interests are all aligned.
You can read all about “tokenomics” here. But the key aspect is this: you need to stake PRE to advertise on Presearch, as if you wanted to become a node operator (and earn PRE by helping validate network transactions).
With Keyword Staking, you choose a search term and place a bid to advertise on the Presearch results page for that term. Whichever ad has the most highlighted PRE will “win” that term and show up in the ad box. And because advertisers are just “locking in” their money rather than spending it, they have more flexibility to try out different campaigns.
So everyone gets their share of the value they create as Presearch grows. More users (who earn crypto incentives) should attract more advertisers to Presearch, and given the structure of the business, more demand for PRE.
Presearch’s business model and the utility of its cryptography was just featured in the cover story for Cable June issue. “Will it work? Maybe not,” writes the crypto-skeptical journalist. “But this is not a Ponzi scheme.”
“In theory, this distributed structure should prevent anyone from pushing Presearch in shady or exploitative directions,” said the Wired the article continues, quoting Colin Pape, who notes, “If we try to extract too much value from users and they get angry, the value of the token goes down.
Although Presearch is not decentralized Again in terms of governance, it attracted 62,600 node operators to earn PRE crypto while validating blockchain transactions. So the network itself is incredibly decentralized, and grow around the world.
And Presearch certainly promises real value: its whole model of a better search/privacy experience is legitimately exciting. It’ll be a project to watch now that it’s passed its “dress rehearsal” phase and is officially in the limelight.
As of the date of publication, Ashley Cassell had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines. To get more news from The New Digital World delivered to your inbox, click here to subscribe to the newsletter.