Giwa Challenges Ethereum's Limits to Make Web3 "Easy and Fun"

South Korea’s leading cryptocurrency exchange Upbit has launched Giwa, an Ethereum Layer-2 blockchain network on testnet, aiming to enhance transaction speed and user experience. Giwa, short for Global Infrastructure for Web3 Access, is built on the Optimism Foundation’s OP Stack and features one-second block times, inheriting Ethereum’s security for transaction settlement. The initiative marks a strategic expansion beyond Upbit’s traditional role as a trading platform and into blockchain infrastructure development [1].

Giwa’s testnet, known as Giwa Sepolia, is already operational and includes development tools that allow for the migration of Ethereum Virtual Machine (EVM)-compatible contracts. A block explorer for tracking testnet activity is also available. While a timeline for the mainnet launch has not been disclosed, the testnet has processed over 4 million blocks, suggesting early development activity [2]. Giwa aims to simplify and scale Web3 infrastructure, making it “easy and fun for everyone,” according to its documentation [1].

The blockchain initiative aligns with Upbit’s broader strategy to support innovation in the financial sector, including the development of a stablecoin pegged to the South Korean won. This aligns with national efforts in South Korea to promote stablecoin adoption and regulatory clarity under the leadership of President Lee Jae Myung. Giwa is also designed for flexibility, allowing customization as the Optimism Foundation’s open-source technology evolves [1].

Upbit’s move into blockchain infrastructure mirrors similar initiatives by other major exchanges and corporations. Coinbase launched Base in 2023, and Binance introduced BNB Chain in 2019, both aiming to provide scalable environments for developers. Google, Stripe, and Sony Group have also announced or launched their own chains in 2025. The competitive landscape highlights the growing interest in building scalable, user-friendly blockchain solutions [1].

Analysts have noted potential centralization concerns with exchange-operated Layer-2 networks. Giwa is expected to start with a single sequencer, granting Upbit control over transaction ordering and possible maximal extractable value (MEV) capture. Jay Jo, a senior analyst at Tiger Research, pointed out that while Upbit’s approach is similar to Coinbase’s, it represents a realistic diversification strategy for the company. Upbit’s large user base and liquidity position it as a key player in the region [2].

South Korea has emerged as a major player in the global crypto ecosystem, with the second-largest on-ramp crypto volume in the Chainalysis 2025 Global Adoption Index. Upbit dominates the domestic market with approximately 73% of South Korean crypto trading volume and ranks among the world’s largest exchanges. The launch of Giwa is seen as a pivotal step in expanding opportunities for both Korean and global developers in the Web3 space [1].

Source: [1] South Korea Crypto Exchange UpBit Launched Ethereum ... (https://cointelegraph.com/news/south-korea-crypto-exchange-ubit-launches-ethereum-l2) [2] Upbit Unveils Ethereum Layer 2 'GIWA' To Compete In ... (https://decrypt.co/338588/upbit-unveils-ethereum-layer-2-giwa) [3] Crypto exchange Upbit launches Ethereum Layer 2 chain ... (https://www.theblock.co/post/369947/upbit-launches-giwa-testnet)