LG Electronics is building a new blockchain on Arbitrum to change how digital ads are bought and sold worldwide. The company wants to bring greater trust, speed, and automation to an industry worth about $679 billion annually.
LG is working with Arbitrum, a leading Ethereum layer-2 network, to create its own custom blockchain for ads. Arbitrum batches transactions off the main Ethereum chain, so the system can process many ad deals quickly and at low cost while still using Ethereum’s security model.
The new chain will function as a common on-chain database for ad inventory and user interactions. It will track what ad spots are available, who buys them, how many impressions they get, and how users respond (views, clicks, etc.). Then, instead of individuals negotiating manually, software can use smart contracts to place, purchase, sell, and maintain adverts.
The project is being led by the blockchain team in LG’s R&D department, which has already performed a test with a Japanese ad agency. The company says it will conduct commercial rollout tests later in 2026 and decide the extent of deployment after those trials.
Why LG, Arbitrum Say Ads Need a Blockchain
Digital advertising is beset by opaque reporting, complex middlemen, and fraud, particularly in the automated programmatic markets. LG believes a shared, on-chain ledger can provide marketers and publishers with a single source of truth for inventory and performance. This kind of structure helps mitigate disagreements over impressions and payment, false traffic, and counterfeit ad spots.
According to an exclusive Fortune report, LG is targeting its global base of about 216 million smart TVs through LG Ad Solutions as a major part of this effort. The firm wants to show that blockchain is not only for cryptocurrencies or collectibles but also for large, traditional industries. Arbitrum co-founder Steven Goldfeder said the structure allows software to operate the ad market automatically, demonstrating how code can replace many intermediaries in the current system.
Samuel Byungsun Park, head of LG’s blockchain research department, said the company is now evaluating whether the model can deliver “meaningful value for advertisers, publishers, and audiences” in the ecosystem. LG will study how the platform performs in real campaigns before scaling it further.
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