The project is being engineered in close collaboration with Arbitrum, a leading Ethereum Layer-2 (L2) scaling solution. By building a dedicated L2 chain, LG aims to establish a shared, onchain database of advertising inventory and verified customer interaction records.
Why LG is Building a Custom Layer-2 Chain
The traditional programmatic advertising space is often criticized for its lack of transparency, high intermediary fees, and reporting discrepancies. By moving these operations onto a custom blockchain, LG Electronics plans to automate the buying and selling of ad slots via smart contracts, eliminating manual negotiations.
“We are evaluating whether this approach can deliver meaningful value to advertisers, publishers and audiences,” stated Samuel Byungsun Park, leader of LG Electronics’ blockchain research department.
The Tech Stack and Pilot Phase
Leveraging Arbitrum’s technology allows LG to batch high-volume transactions with minimal fees and high throughput. Arbitrum co-founder Steven Goldfeder highlighted the efficiency gains of moving programmatic advertising directly onto decentralized ledgers:
“It means that you can basically run the market in an automated way in software. You don’t need manual interventions.”
The project has already progressed past its initial technical evaluation. LG successfully completed a pilot program with an unnamed Japanese advertising agency and plans to explore a broader commercial rollout later in 2026.
LG’s Long-Term Web3 Roadmap
This initiative represents a strategic shift for LG, moving away from consumer-facing crypto experiments toward robust back-end enterprise infrastructure. The company’s blockchain journey spans nearly a decade:
- 2018: Launched “Monachain” for digital authentication and supply chain management.
- 2022: Amended its corporate charter to include blockchain software development and cryptocurrency brokerage.
- 2022-2025: Developed the Wallypto wallet and LG Art Lab NFT platform (discontinued in 2025).
With a massive global footprint of over 216 million smart TVs, LG possesses the scale necessary to test and implement blockchain-powered advertising at an unprecedented industry level.
Frequently Asked Questions (FAQ)
Why did LG choose Arbitrum for this project?
Arbitrum offers the high throughput, low latency, and low transaction costs required to handle the massive volume of data generated by programmatic ad operations in real-time.
Will this change how users experience ads on LG TVs?
No, the technology operates entirely on the back-end. It improves how ad spaces are bought, sold, and verified, reducing fraud and improving reporting accuracy for brands.
When will the blockchain ad platform go live?
Following a successful pilot program with a Japanese ad agency, LG plans to begin a broader commercial rollout in late 2026.
