In a significant development for the cryptocurrency landscape in South Korea, UpBit, the nation’s leading centralized exchange, has launched its own native Ethereum Layer 2 blockchain, named GIWA. This initiative aims to enhance user experience by bringing them directly onto the blockchain, with an emphasis on accessibility and efficiency.
GIWA, which stands for Global Infrastructure for Web3 Access, is built using the Optimism (OP) stack. The name also carries cultural significance, referencing a traditional Korean roof tile that symbolizes both scalability and solidarity, embodying the concept that while individual components may be small, their collective power can lead to substantial outcomes.
The new blockchain’s testnet is already operational, showcasing impressive features such as one-second block times and full compatibility with the Ethereum Virtual Machine (EVM). Users will engage with this platform using ETH for network fees, marking a move towards integrating cryptocurrency into everyday transactions more seamlessly. Future plans for GIWA include providing an intuitive interface designed specifically for beginners, allowing them to navigate on-chain interactions without needing to grasp the complexities of different blockchain technologies, tokenization, or gas fees.
The timing of this announcement is notable, as it occurs shortly after South Korea’s Financial Services Commission (FSC) enforced stringent know-your-customer (KYC) regulations for centralized exchanges. While it appears that KYC will not be a requirement for GIWA users, the platform is set to implement an on-chain verification system specifically for institutional clients, potentially providing a layer of security and trust for higher-volume trading.
As GIWA launches, the appetite for on-chain trading in South Korea remains to be fully realized. Historically, the Korean market has exhibited a robust interest in new altcoin listings, often resulting in dramatic price swings. In recent months, tokens such as SYRUP, MOODENG, and HYPER have seen their values soar between 30% to 500% within 48 hours of being listed on major South Korean exchanges like UpBit and Bithumb. This track record suggests that the introduction of GIWA could significantly impact user engagement and trading trends within the Korean cryptocurrency ecosystem.
