South Korea’s Upbit Reimagines Crypto Speed With Ethereum’s GIWA Layer-2

Upbit, South Korea’s largest cryptocurrency exchange, has launched GIWA, a Layer-2 blockchain built on Ethereum’s OP Stack, aiming to enhance transaction speed and user experience. The platform, announced at the Upbit D Conference 2025 on September 9, delivers one-second block times and supports Ethereum Virtual Machine (EVM)-compatible smart contracts, enabling developers to build decentralized applications with minimal friction. GIWA’s launch positions Upbit to compete with other major Layer-2 solutions such as Binance’s BNB Chain and Coinbase’s Base Network, both of which have already expanded beyond their core exchange operations into broader blockchain ecosystems [2].

According to the GIWA documentation, the platform leverages Optimism Foundation’s open-source technology to inherit Ethereum’s security while optimizing for speed and cost-efficiency. This design allows for near-real-time transactions, a key differentiator in a market where high fees and slow confirmation times have long been barriers to mass adoption. The testnet, known as Giwa Sepolia, has already processed over 4 million blocks, suggesting that development has been ongoing for several weeks. This rapid development phase highlights the project’s urgency and potential readiness for broader deployment [2].

Upbit’s parent company, Dunamu, has filed multiple trademark applications for the GIWA brand, covering blockchain software, digital asset infrastructure, and related technologies. These filings, along with a stylized logo and countdown timer on the Upbit Developer Conference website, signaled the project’s imminent launch. Dunamu has not made any official public comments on the trademark filings, but the project’s unveiling at the UDC 2025 event has generated significant interest from developers, traders, and users [3].

The strategic move by Upbit to enter the Layer-2 space aligns with broader trends in the crypto market. South Korea has consistently ranked among the top global crypto adoption markets, with Chainalysis reporting that the country recorded the second-largest on-ramp crypto volume between July 2024 and June 2025, at $1 trillion. Upbit, which accounts for approximately 73% of South Korean crypto trading volume, stands to benefit significantly from a blockchain infrastructure tailored to local user behavior and developer needs [2].

However, GIWA’s potential to drive Web3 growth in the region also raises concerns about centralization. Unlike decentralized blockchains that rely on a distributed network of validators, Layer-2 solutions like GIWA are often controlled by their issuing entities, in this case, Upbit and Dunamu. While this allows for faster and more efficient operations, it introduces a central point of control that could be at odds with the decentralization ethos of the crypto space. Analysts suggest that the long-term success of GIWA will depend on its ability to balance scalability with decentralized governance [2].

In addition to technical and governance considerations, GIWA is also integrated with identity verification tools. The platform introduces a Soulbound Token (SBT), known as GIWA ID, which provides users with verified digital identities that cannot be transferred or traded. This approach aims to enhance trust and security in on-chain interactions while addressing privacy concerns. However, the centralized nature of identity verification remains a potential point of contention within the broader crypto community [4].

Source:

[1] Upbit Rumored to Launch GIWA Layer-2 Chain on Ethereum (https://finance.yahoo.com/news/upbit-rumored-launch-giwa-layer-210610619.html)

[2] South Korean Crypto Exchange UpBit Launched Ethereum ... (https://cointelegraph.com/news/south-korea-crypto-exchange-ubit-launches-ethereum-l2)

[3] Upbit operator rumored to launch GIWA chain (https://cryptobriefing.com/upbit-launches-giwa-chain-blockchain-announcement/)

[4] Upbit introduces GIWA as an Ethereum Layer 2 to lower ... (https://cryptorank.io/news/feed/55b00-upbit-introduces-giwa-blockchain)