South Korea’s Upbit Launches High-Speed Ethereum Layer 2 Blockchain

Upbit announced the launch of Giwa, its own Ethereum Layer 2 network, at the Upbit D Conference 2025 on Monday. This move puts the Korean exchange alongside global giants like Coinbase and Binance, who have built their own blockchain networks.

Giwa stands for “Global Infrastructure for Web3 Access” and promises to solve major problems that slow down Ethereum transactions. The network can process blocks every single second, making transactions nearly instant compared to Ethereum’s slower speed.

The new blockchain uses advanced technology called Optimistic Rollup, built on Optimism’s OP Stack. This setup allows Giwa to inherit Ethereum’s strong security while dramatically increasing transaction speed.

Early testing shows impressive results. The Giwa Sepolia testnet has already processed over 4 million blocks, proving the system can handle high-frequency operations. Developers can easily move their existing Ethereum smart contracts to Giwa without major changes because it fully supports the Ethereum Virtual Machine.

The exchange has set up complete developer tools, including a block explorer that tracks all testnet activity. This infrastructure lets programmers test their applications in a live environment before the main network launches.

Upbit controls roughly 73% of South Korean crypto trading and handles $2.5 billion in daily volume. Despite focusing mainly on the Korean market, this trading volume ranks Upbit as the 20th largest exchange worldwide.

South Korea’s crypto market shows remarkable strength. The country recorded $1 trillion in crypto purchases between July 2024 and June 2025, making it the second-largest market globally behind only the United States at $4.2 trillion, according to Chainalysis research.

This massive user base gives Giwa a significant advantage. Industry analysts point to Upbit’s “massive user base and liquidity” as key strengths that could make this blockchain launch successful.

Contrary to expectations of a regional focus, Upbit’s parent company Dunamu positioned Giwa as global infrastructure. The project targets international blockchain developers, not just Korean users.

The accompanying Giwa Wallet supports multiple blockchains including Ethereum, Base, Arbitrum, Polygon, and Avalanche. This multi-chain approach shows the company wants to build bridges between different blockchain networks rather than create an isolated system.

Dunamu operates subsidiaries across Southeast Asia, giving it infrastructure to reach developers worldwide. The company aims to compete with established blockchain hubs in the United States and Singapore.

Giwa introduces several novel features designed to improve user experience. The system includes GIWA ID, which uses Soulbound Token technology for digital identity verification. These tokens cannot be transferred or sold, creating more secure digital identities.

The network addresses Ethereum’s high fees and slow transaction times that often frustrate users. Instead of replacing Ethereum, Giwa works as a Layer 2 solution, processing transactions on its own system before recording them back to Ethereum’s main network.

Developers can use the same programming tools and frameworks they already know from Ethereum development. This compatibility makes it easier for existing projects to expand onto Giwa without learning new systems.

The blockchain industry has seen major companies launch their own networks throughout 2025. Google, Stripe, and Sony Group have all launched chains or committed to launching blockchain infrastructure. Upbit joins this trend by leveraging its position in one of Asia’s most active crypto markets.

Korean traders have historically shown strong influence on global crypto markets. If Giwa successfully attracts this user base, it could become a significant player in the Layer 2 ecosystem.

The project represents Upbit’s evolution from a simple trading platform to a comprehensive Web3 infrastructure provider. This shift addresses the exchange’s need for new revenue sources as traditional trading fees face competitive pressure.

Upbit has not announced when the main network will launch. The company continues focusing on testing and developer tools through the Giwa Sepolia testnet. Programmers can already connect Web3 wallets, deploy contracts, and track transactions using the current test environment.

The exchange operates under direct supervision from Korean financial authorities and likely secured regulatory approval before announcing Giwa. This regulatory backing could provide stability as the project moves toward full launch.

Early community response shows significant interest, with crypto enthusiasts speculating about potential applications and token launches on the new network.

Upbit’s Giwa launch marks a major step in South Korea’s emergence as a global blockchain hub. The project combines the exchange’s market dominance with cutting-edge Layer 2 technology to create infrastructure that could serve developers worldwide. Success will depend on attracting projects, maintaining technical performance, and building a thriving ecosystem around the one-second block time advantage.