Upbit Ventures into Ethereum Layer 2 with Giwa Launch, Aiming to Boost Web3 Accessibility

South Korean crypto exchange Upbit, operated by Dunamu, has launched its Ethereum Layer 2 network, Giwa, on testnet. This move signifies Upbit's ambition to expand beyond its role as an exchange and compete in the burgeoning Web3 infrastructure race, aiming to provide a faster, cheaper, and more accessible experience for users.

Key Takeaways

• Upbit's Giwa is an EVM-compatible Layer 2 solution built on Optimism's OP Stack.

• It aims to offer one-second block times and near-real-time transactions.

• The network is designed to simplify Web3 access and support a local currency-pegged stablecoin project.

Giwa: A New Frontier for Web3 Infrastructure

Giwa, an acronym for "Global Infrastructure for Web3 Access," is built upon Optimism's OP Stack, an open-source framework. This foundation allows Giwa to inherit Ethereum's security while offering significantly faster transaction speeds, with a target block time of just one second. The network is EVM-compatible and uses Solidity, the same programming language as Ethereum, making it easier for developers to build and migrate existing applications.

Dunamu CEO Oh Kyung-seok highlighted Giwa's potential to "aggressively compete in the global financial infrastructure race," emphasizing the evolution of digital assets beyond speculative bubbles. The initiative aims to foster innovation within South Korea's Web3 ecosystem, addressing the current gap where the Korean market is perceived as largely sidelined in global blockchain development.

Strategic Expansion and Future Plans

Upbit's foray into Layer 2 development mirrors strategies adopted by other major exchanges like Coinbase with Base and Binance with BNB Chain. This diversification allows Upbit greater control over its ecosystem and facilitates faster innovation. The company is also developing a native wallet system, Giwa Wallet, to further enhance user experience.

Giwa is also slated to support a local currency-pegged stablecoin project, aligning with South Korea's national initiative to strengthen currency sovereignty through a robust stablecoin market. While the mainnet launch timeline is not yet disclosed, the testnet is live, allowing developers to experiment and deploy smart contracts.

Addressing Scalability and User Experience

Giwa is designed to tackle Ethereum's persistent issues of slow transaction times and high gas fees, especially during periods of network congestion. By processing most transactions off the main Ethereum chain and settling them back on Layer 1, Giwa aims to provide a seamless experience without compromising Ethereum's security. The network also introduces Giwa ID, a Soulbound Token (SBT) for verified digital identities, adding a layer of security and usability for users.

Despite potential concerns about centralization, particularly regarding the sequencer model, Upbit operates under the direct supervision of Korean authorities. This suggests a degree of regulatory alignment, which could be crucial for the network's long-term success and adoption within the South Korean market, where Upbit holds a dominant position.

Sources

• Crypto exchange Upbit launches Ethereum Layer 2 chain Giwa on testnet, The Block.

• South Korean Crypto Exchange UpBit Launched Ethereum L2 Giwa, Cointelegraph.

• Upbit Unveils Ethereum Layer 2 ‘GIWA’ To Compete In Infrastructure Race, Decrypt.

• Upbit announces Ethereum Layer 2 using OP Stack, Crypto Briefing.

• South Korea’s Upbit introduces GIWA blockchain to simplify Web3 access, Cryptopolitan.