LG Electronics, one of the world’s largest consumer electronics and home appliance companies, is building a blockchain-powered advertising network that would allow advertisers and publishers to share ad inventory data and track customer engagement through a decentralized ledger, the company said Thursday.

Developed with Arbitrum, the system operates on LG’s own layer 2 blockchain, which is designed to process transactions more efficiently and at lower cost.

Following a pilot with a Japanese advertising agency, LG is considering how to bring the product to market later this year. The approach is expected to reduce manual processes and improve efficiency across the advertising ecosystem.

LG Electronics was among the earliest global technology companies to embrace blockchain. In 2018, LG CNS, the technology group’s IT solutions arm, introduced the Monachain platform as a proprietary blockchain platform designed to support industries including finance, manufacturing, logistics and media.

In September 2022, LG unveiled LG Art Lab, an NFT marketplace built on Hedera that allows compatible smart TV users to purchase, sell and display NFTs directly on their televisions. The rollout marked LG’s entry into the NFT and metaverse sector.