South Korea's Upbit Initiates Fast Ethereum Layer 2 Chain on Blockchain Network
Upbit, the dominant cryptocurrency exchange in South Korea, has taken a significant step forward in its evolution from a trading platform to a comprehensive Web3 infrastructure provider. The company has launched Giwa, its own Ethereum Layer 2 network.
Giwa, which stands for 'Global Infrastructure for Web3 Access', is designed to address Ethereum's high fees and slow transaction times. It uses Optimistic Rollup technology, built on Optimism's OP Stack, and is compatible with the Ethereum Virtual Machine, allowing for easy migration of existing Ethereum smart contracts.
One of Giwa's key features is the GIWA ID, which leverages Soulbound Token technology for digital identity verification. This system is expected to attract Korean traders, who, with Giwa's rapid transaction speeds, could become significant players in the Layer 2 ecosystem.
The main network launch date for Giwa has not been announced yet, but early testing on the Giwa Sepolia testnet has been promising. The testnet has processed over 4 million blocks and can process a block every second, making transactions nearly instant.
Upbit's decision to launch Giwa comes at a time when major companies like Google, Stripe, and Sony Group have also launched their blockchain networks. With its strong influence in the Korean crypto market, controlling approximately 73% of South Korean crypto trading, Upbit joins this trend.
Upbit's focus on Giwa doesn't mean it's abandoning its trading roots. The exchange still handles $2.5 billion in daily crypto trading volume. Moreover, it continues to focus on testing and developer tools, ensuring a smooth transition for Ethereum developers to Giwa's platform. In fact, developers can use the same programming tools and frameworks they know from Ethereum development on Giwa.
To reach international blockchain developers, Upbit operates subsidiaries in Singapore and the United States for its Giwa project. This global approach positions Giwa as a global infrastructure, targeting developers worldwide.
The launch of Giwa comes amidst a surge in crypto adoption in South Korea. Between July 2024 and June 2025, the country recorded $1 trillion in crypto purchases. With Giwa's promise of faster transactions and global appeal, it could significantly contribute to this growing market.
Giwa's launch also underscores Upbit's commitment to regulatory compliance. The exchange operates under direct supervision from Korean financial authorities and likely secured regulatory approval before announcing Giwa. This focus on regulation is crucial for the continued growth and acceptance of cryptocurrencies in South Korea and beyond.
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