Upbit’s GIWA Could Spur Ethereum Layer-2 Growth in South Korea While Raising Centralization Concerns

• Upbit launched GIWA testnet to scale Ethereum using Optimistic Rollups and OP Stack.

• GIWA targets one-second block times, a dedicated wallet, and verified liquidity from Upbit market data.

• Sepolia testnet live; roadmap includes phased decentralization and stablecoin plans pending Korean regulation.

GIWA: Upbit’s Ethereum Layer 2 on Optimism’s OP Stack. Testnet live — explore roadmap, wallet, and developer access on GIWA today.

What is GIWA and why is Upbit launching it?

GIWA is an Ethereum Layer 2 network created by Upbit operator Dunamu to boost scalability, developer activity, and new product rails for its large user base. It is built on Optimism’s OP Stack and aims to combine faster block times with Upbit-sourced liquidity and a dedicated mobile wallet.

How does GIWA use Optimism’s OP Stack and what features will it offer?

GIWA leverages the OP Stack to implement Optimistic Rollups that batch transactions and settle to Ethereum, improving throughput and reducing fees. The network targets one-second block times and plans privacy features alongside verified liquidity drawn from Upbit’s order books. A GIWA Wallet app is in development for assets, NFTs, and dApps.

When did GIWA first appear and what is the current status?

GIWA surfaced after trademark filings on August 8 and was confirmed publicly by Dunamu/Upbit leadership in a recent developer keynote. The Sepolia testnet is currently live while official documentation outlines a staged decentralization plan and future stablecoin considerations dependent on Korean regulation.

What are the centralization and regulatory questions around exchange-operated Layer 2s?

Exchange-operated Layer 2 chains often launch with a single sequencer under operator control. That model can centralize transaction ordering and enable MEV capture. Analysts warn that such setups may draw regulatory scrutiny if they functionally act as trading venues. Upbit’s relationship with Korean authorities and prior industry engagement suggest regulatory alignment is being considered.

How to join the GIWA Sepolia testnet?

1. Install the GIWA Wallet beta once announced in official documentation.
2. Configure an Ethereum-compatible wallet to point to the GIWA Sepolia testnet RPC when provided.
3. Obtain testnet tokens via the official GIWA faucet (as posted in project docs).
4. Deploy or test dApps on GIWA using standard OP Stack tooling and the provided testnet endpoints.
5. Report issues and participate in governance tests as the network moves toward decentralization.

Frequently Asked Questions

Is the GIWA testnet open to developers?

Yes. The Sepolia testnet is publicly available for developers to deploy and test dApps using OP Stack tooling, with documentation indicating wallet and developer resources are planned.

How will GIWA handle decentralization?

GIWA will follow a phased decentralization roadmap. It is expected to begin with a single sequencer under operator control and transition toward greater decentralization over time as governance and technical milestones are met.

Key Takeaways

• GIWA launch: Upbit’s GIWA is an Ethereum Layer 2 built on the OP Stack to improve scalability and developer access.
• Testnet status: Sepolia testnet is live with one-second block targets and a GIWA Wallet in development.
• Regulatory & centralization risks: Exchange-operated sequencer models raise scrutiny; Upbit appears to coordinate with Korean regulators as it pursues growth.

Conclusion

GIWA positions Upbit to expand beyond exchange services into blockchain infrastructure by leveraging Optimism’s OP Stack, on-chain liquidity, and a dedicated wallet. As GIWA progresses from Sepolia testnet toward decentralization, developers and institutional observers will watch for governance milestones and regulatory clarity. Stay updated via COINOTAG for continued coverage and technical briefings.