LG Branch Develops Blockchain Service - Report

LG's Monachain will be applied in finance, telecommunications and manufacturing.

by Kalina Tekelieva
14 May • 3 min
In News

LG CNS, an IT service unit of South Korean electronics and telecoms conglomerate LG, has created a blockchain-based platform called Monachain to be used in multiple sectors, according to LG CNS statement quoted by Yonhap News Agency on Sunday.

To develop the service, LG CNS has partnered with US-based blockchain startup R3 CEV, which runs a consortium of over 100 financial institutions and seeks to develop blockchain technology. The collaboration was first revealed in June 2017, reflecting LG CNS’ intentions to strengthen its finance business.

The Monachain platform will have the following key features:

- Digital authentication – a digital certificate is set to verify user identities on portable devices, such as smartphones, by means of biometric data or a personal identification number (PIN). An advantage of Monachain is that it can connect with other systems by applying decentralized identifiers (DIDs), according to Yonhap. Powered by blockchain technology, DIDs are systems that give individuals full control over their identity, thus preventing hijacking of user information.

An example given by LG CNS describes the following scenario: when a person is to pay for medical expenses at a hospital, the Monachain platform can quickly share related information between the hospital and the insurance company, so that the person gets automatically billed for the insurance claim.

Digital currency service – a currency issuance feature that will enable local governments to provide payments of welfare benefits in co-operation with local banks

- Digital supply chain management – a system allowing a quick transfer of information throughout the supply chain - all the way from the production to the delivery of a product.

In June last year, LG CNS said the new blockchain platform would be based on R3’s “Corda” distributed technology.

Scope and ambitions

A team of 50 is working within the Monachain project under the lead of LG CNS chief technical officer Hyun Shin-kyun. The company intends to more than double that number by the end of 2018.

In an effort to further expand its digital finance business, LG CNS is planning to open a digital financial center on July 1 this year.

LG’s IT arm is also aiming to join the Linux Foundation’s Hyperledger Project - an open-source collaboration of over 100 global companies whose goal is to advance blockchain tech, in the first half of 2018. Among the members of Hyperledger are some of LG’s competitors, like Samsung’s IT service subsidiary Samsung SDS and Huawei Technologies.