A Leap Towards Ethereum Layer 2 Scalability

Upbit, South Korea’s largest crypto exchange, has introduced GIWA, an Ethereum Layer 2 solution running on a testnet with plans to launch the “GIWA Wallet” soon.

GIWA aims to tackle Ethereum’s scalability issues, reflecting a strategic shift for Upbit toward blockchain infrastructure, potentially impacting Ethereum’s network dynamics.

Upbit’s GIWA Testnet Makes Ethereum Faster

Upbit has officially introduced GIWA, its Ethereum Layer 2 solution. The venture, which utilizes the Ethereum OP Stack, seeks to address scalability and cost challenges inherent in Ethereum. Coinciding with its testnet launch reported by ChainCatcher, over 8,000 wallets have interacted through airdrop faucets.

The GIWA Wallet application is due for release soon, with the testnet already processing four million blocks. By aiming for one-second block times, the exchange highlights its commitment to faster and more efficient transactions. With no GIWA token planned, the network remains focused on Ethereum assets.

Feedback from developers highlights substantial interest in GIWA, with the testnet integration drawing initial community support. Although official remarks from the CEO or CTO remain absent on social channels, the plan was presented at the Upbit Developer Conference, indicating strong corporate backing.

“GIWA is our entry into blockchain technology infrastructure, offering a foundation for developers to launch high-speed, low-cost dApps and DeFi protocols on Ethereum’s security base.” — Upbit Official Announcement, Upbit.

Implications for dApps and Market Reactions

Did you know? In recent years, Layer 2 solutions like Optimism and Arbitrum have drastically lowered fees and improved speeds on Ethereum’s blockchain, paving the way for initiatives like Upbit’s GIWA to enhance network scalability further.

CoinMarketCap data reports Ethereum’s current price at $4,362.27, with a market cap of $526.55 billion. It shows a market dominance of 13.43%. Recent trends indicate a 1.50% increase over 24 hours, though the past week’s price has slightly fallen by 0.72%.

Coincu’s research team anticipates that Upbit’s GIWA initiative could drive accelerated adoption of dApps and DeFi protocols by reducing transaction costs and improving speeds, aligning with South Korea’s regulatory framework for identity verification.