South Korean electronics giant LG has announced that it’s launched its own blockchain service, Monachain. The service was launched through the company’s information technology service unit, LG CNS. According to The Korea Times, the service is aimed at capitalizing on the lucrative emerging field of blockchain-based services especially in the fields of telecommunications, manufacturing and finance.
Championing The Decentralized Economy
Monachain will offer various decentralized services, one of which will be a digital authentication and certification service. For this, it will use an all-new type of identifier known as the decentralized identifier (DID) for verifiable, self-sovereign digital identity. The DID system will enable Monachain users to easily identify themselves and conduct financial transactions such as online payments and funds transfers from their smart devices. Users will also get to create their own digital wallets on the platform. According to reports, LG CNS is currently working with local financial organizations to incorporate more digital financial capabilities into its blockchain service.
Monachain will also help businesses improve efficiency and boost productivity, with the company saying:
[…] Monachain can help business owners boost productivity as the company provides a digital supply chain management system that enables suppliers to manage the entire production processing efficiently.
The name Monachain was derived from ‘Mona Lisa’, the famous oil painting by Leonardo da Vinci, as well as ‘blockchain’, the company explained. With ‘mona’ also meaning queen in Greek, ‘Monachain’ could also be interpreted as ‘queen of the blockchain’.
This is not the first time LG has ventured into blockchain technology, with the Seoul-based company having announced last year that it was developing a blockchain platform targeting the financial services industry. The platform was built using Corda, a distributed ledger that was developed by the R3 consortium. In making the announcement, the LG CNS president, Kim Yong-seop, said the company had decided to use Corda due to its selective data disclosure structure and its efficiency.
Samsung, another Seoul-based multinational and the biggest conglomerate in South Korea, also announced its intent to integrate blockchain tech into its global supply chain a month ago. Through its IT subsidiary, Samsung SDS, the world’s second-largest technology company views its blockchain platform as able to cut costs by up to 20%. With close to 500,000 tons of air cargo alone expected to be shipped by the end of the year, Samsung is set to benefit greatly from its blockchain supply chain platform and hopes to move its entire supply network to the blockchain. Samsung has also partnered with the South Korean government to develop a blockchain-based platform for public welfare and transportation. Although the country has banned ICOs, it has continued to encourage research and development in blockchain technology as it seeks to compete with other developed nations in this emerging industry.