LG Electronics has reportedly selected Arbitrum, an Ethereum Layer 2 network, to develop a new blockchain designed for advertising and media-related scenarios. After the news was released, Arbitrum’s native token ARB gained more than 5% in one day, making the token’s price move one of the immediate developments linked to the announcement.
A blockchain for digital advertising operations
According to the report, the new network built on Arbitrum will be used for the delivery, buying, selling and management of digital advertisements. In addition to supporting the operational flow of digital advertising, the network will record how users interact with advertising content, allowing those interactions to be logged as part of the advertising and media process.
Arbitrum is an Ethereum Layer 2 network developed by Offchain Labs. It uses Optimistic Rollup technology and is designed to provide faster and lower-cost transaction experiences for Ethereum. LG Electronics’ choice of Arbitrum places the new blockchain within this Layer 2 framework, with the reported use case focused on advertising and media activities rather than a general consumer blockchain product.
LG’s earlier blockchain initiatives
This is not LG’s first move into blockchain. The company previously launched the enterprise blockchain Monachain through its IT services unit, LG CNS, and also developed the crypto wallet Wallypto. Those earlier products covered enterprise blockchain infrastructure and wallet-related functions within LG’s broader technology portfolio.
LG also introduced the Art Lab NFT marketplace, although that platform was closed last year. With the newly reported Arbitrum-based blockchain, LG’s blockchain-related work now extends from enterprise blockchain services, a crypto wallet and an NFT marketplace into digital advertising delivery, ad transactions, ad management and the recording of user interactions with advertising content.