Giwa Emerges as Upbit's Bold Answer to Ethereum's Speed and Cost Limits

South Korean cryptocurrency exchange Upbit has announced the launch of a new Ethereum Layer 2 (L2) blockchain platform called Giwa, aiming to enhance transaction speed and reduce costs for users engaging with decentralized finance (DeFi) and non-fungible token (NFT) applications. The platform, which leverages the Optimistic Rollup technology, is designed to scale Ethereum's infrastructure by processing transactions off-chain before finalizing them on the mainnet. This move positions Upbit as one of the few major exchanges to develop and deploy an in-house L2 solution, reflecting its broader strategy to integrate infrastructure innovation with exchange operations [1].

Giwa will initially support Ethereum-based tokens and smart contracts, enabling developers to deploy decentralized applications (dApps) with significantly lower gas fees compared to direct Ethereum transactions. According to Upbit, the solution can handle up to 2,000 transactions per second, with confirmation times expected to be reduced to under 10 seconds. The launch of Giwa is also seen as a competitive response to other Layer 2 solutions such as Arbitrum and Optimism, which have gained traction among developers and users seeking more scalable alternatives to the Ethereum mainnet [1].

The development of Giwa underscores the growing trend among major cryptocurrency exchanges to invest in blockchain infrastructure. In recent months, several leading platforms have either launched or partnered on L2 solutions to address scalability issues and improve user experience. Upbit's initiative is particularly notable given its strong market position in Asia, where Ethereum adoption continues to grow alongside the expansion of DeFi and Web3 projects. Analysts suggest that by integrating Giwa directly into its ecosystem, Upbit may attract more developers and liquidity providers to its platform [1].

While Upbit has not disclosed specific timelines for future upgrades or token support, the company has indicated that it will continue to enhance Giwa’s functionality based on user feedback and technological advancements. The platform is expected to be open to the public in the coming months, with plans to integrate it with Upbit’s existing wallet and trading services. This integration is anticipated to streamline user access to DeFi platforms and NFT marketplaces, reinforcing Upbit’s role as a bridge between traditional and decentralized finance [1].

Regulatory developments in South Korea and the broader Asia-Pacific region could also influence the adoption and success of Giwa. With increased scrutiny on cryptocurrency activities, Upbit has emphasized its commitment to compliance, stating that Giwa will adhere to all relevant legal and operational standards. The company has also indicated that it will work closely with regulatory bodies to ensure that the platform operates within the evolving legal framework governing blockchain and digital assets [1].

Source: [1] Upbit Official Announcement (https://upbit.com)