LG has announced the launch of its own layer 2 blockchain network in collaboration with Arbitrum, marking a significant step toward expanding enterprise use cases for blockchain technology beyond finance. Following the announcement, the Arbitrum ecosystem’s native token ARB surged approximately 5% in the past 24 hours.
Enterprise adoption gains momentum
Blockchain technology was long viewed primarily as a tool for accelerating financial processes in banks and intermediary institutions. Recently, however, major corporations have begun to explore distributed ledger solutions to simplify business processes and increase operational efficiency.
Speaking to Fortune, LG confirmed the development of its proprietary layer 2 network in partnership with Arbitrum. Based in South Korea, LG is recognized globally for its operations in electronics, displays, home technologies, and enterprise solutions.
Quick glossary: Layer 2 refers to scaling solutions built atop a primary blockchain. These systems process transactions with lower costs and higher speeds while aiming to anchor their security to the underlying mainnet.
Steven Goldfeder, co-founder of Arbitrum, emphasized that their platform can automate the entire ad sales workflow, eliminating the need for manual intervention.
Operational efficiency now the focus
LG’s initiative reflects a broader shift among enterprises, which now see blockchain as a direct operational tool, not just as a financial innovation. For example, Walmart has reduced the time required to trace products in its supply chain from six days to 2.2 seconds. Meanwhile, IBM has focused on blockchain-based supply chain solutions, and Microsoft has integrated blockchain technology into its Azure cloud platform for enterprise applications.
According to Arbitrum, the main factor driving this interest is clear: companies aim to build more efficient systems with minimal human intervention, especially for repetitive processes with multiple intermediary steps. The platform’s application in ad sales workflows was also highlighted as a use case.
| Company | Blockchain use case | Highlighted detail |
|---|---|---|
| LG | Developing own layer 2 network | Arbitrum partnership |
| Walmart | Supply chain traceability | Tracking time cut to 2.2 seconds from six days |
| IBM | Supply chain solutions | Enterprise adoption emphasis |
| Microsoft | Enterprise apps on Azure | Cloud integration |
Market reaction and ARB’s price movement
Arbitrum’s native token ARB climbed in the wake of the news and a broader crypto market rally. The article notes that the token rose more than 7%, reaching $0.0834, while the introduction mentioned a daily gain of around 5%.
The increase in ARB tracked with the wider market rebound led by bitcoin, as bitcoin prices advanced over 3% to $63,500.
According to CoinDesk data, bitcoin rose more than 3% to reach $63,500 during the same period. As a result, the ARB token’s price move was attributed both to the company news and an overall uptick in crypto market sentiment.
