South Korean technology giant LG Electronics has announced the development of a new platform aimed at moving its advertising placement and sales processes onto the blockchain.
According to Fortune’s exclusive report, the company, known for its televisions, laptops, and various consumer electronics products, is working on a new initiative in advertising technologies through its own blockchain research lab.
Developed by LG Electronics, the platform will offer a shared ad inventory database for advertisers and publishers, while also recording how users interact with ads on the blockchain. The company previously piloted the project with an unnamed Japanese advertising agency.
LG collaborated with Arbitrum, Ethereum’s second-layer (Layer-2) scaling solution, in developing the new infrastructure. Using Arbitrum technology, LG created its own Layer-2 blockchain network. The network aims to reduce operational costs in the advertising ecosystem by enabling the batch processing of transactions at low cost. The company will evaluate how to commercially implement the advertising platform later in the year.
Samuel Byungsun Park, Head of Blockchain Research at LG Electronics, stated that they are testing whether the new approach can generate meaningful value for advertisers, publishers, and users.
Steven Goldfeder, co-founder of Arbitrum, said that their blockchain-based advertising platform could make advertising sales processes more efficient. Goldfeder stated that the system could operate largely automatically through software, reducing the need for manual intervention.
Following this development, the price of $ARB rose:
*This is not investment advice.