LG Electronics is building a new blockchain on Arbitrum, the Ethereum scaling solution, driving Arbitrum's native ARB token up over 5% on the day. Fortune reported the development on Thursday, citing representatives from LG and Arbitrum. The network is designed to support advertising and media-related use cases, according to the report.
LG Electronics' Previous Blockchain Initiatives
This is not LG's first blockchain venture. The South Korean tech conglomerate previously launched Monachain, an enterprise-focused blockchain through its IT services arm LG CNS, and a dedicated Wallypto crypto wallet. LG has also explored AI agentic payments via deposit tokens as part of the Bank of Korea's Project Han River pilot.
Last year, LG shuttered its Art Lab NFT marketplace, which was first launched on Hedera before expanding to Ethereum.
New Arbitrum-Based Network Features
According to Fortune, LG's new Arbitrum-based network will serve as a platform for placing, buying, selling, and managing digital ads. The blockchain aims to make the advertising sector more transparent and efficient through onchain transactions. The network will keep a record of how customers have interacted with advertisements and provide a shared ad inventory database for advertisers and publishers.
The chain, which does not appear to have a name yet, was developed by LG's dedicated blockchain research lab and piloted with an unnamed Japanese ad agency.
Arbitrum Technical Background and Recent Developments
Arbitrum is a leading Ethereum Layer 2 scaling solution developed by Offchain Labs that uses optimistic rollups to provide faster and cheaper transactions. The network generated controversy following the KelpDAO hack, after the Arbitrum Security Council froze 10s of millions of dollars worth of ETH to return to victims.
Several institutions and startups are building blockchains to manage intellectual property. Sony's Soneium chain, built on rival Ethereum scaling solution Optimism, was designed for entertainment-related use cases, while blockchains like Story are built to store and manage intellectual property.
FAQ
What did LG Electronics announce on Thursday?
LG Electronics announced it is building a new blockchain on Arbitrum designed to support advertising and media-related use cases, according to Fortune, which cited representatives from LG and Arbitrum.
What are the features of LG's new Arbitrum-based blockchain?
The network will serve as a platform for placing, buying, selling, and managing digital ads. It will keep a record of customer interactions with advertisements and provide a shared ad inventory database for advertisers and publishers. The chain was developed by LG's blockchain research lab and piloted with an unnamed Japanese ad agency.
What is Arbitrum?
Arbitrum is an Ethereum Layer 2 scaling solution developed by Offchain Labs that uses optimistic rollups to provide faster and cheaper transactions.
