Blockchain technology on path to becoming more publically accessible

A logo of Lambda256 is displayed at its head office in Seoul. Courtesy of Lambda256

Lambda256 expects threefold sales growth on booming blockchain industry

By Lee Min-hyung

Lambda256 CEO Park Jae-hyun

Lambda256, a blockchain subsidiary of Korea's dominant crypto exchange operator Dunamu, expects its representative blockchain platform ― Luniverse ― to gradually expand its footing as a more globally influential service with its price competitiveness and market responsiveness, the firm's CEO Park Jae-hyun said during a recent interview.

The Dunamu affiliate made its debut in May 2018, operating the blockchain-as-a-service platform for clients here and abroad. The cloud-based blockchain infrastructure provider is still lesser known in the United States and Europe despite its robust sales growth in the home market.

But the firm's leader expressed optimism for gradual inroads into not just the Asia-Pacific region but others across the globe.

"Blockchain technology is on a path to becoming more and more publically accessible, and we are a company playing a role for our clients to more easily access blockchain," Park said. "Luniverse stands at the center of the role. The platform still has a way to go for globalization. Our near-term goal is to expand our market share in Asia that has huge growth potential thanks to an ever-growing demand for blockchain. For instance, the number of Southeast Asian blockchain-powered game users is forecast to rise further."

The Lambda256 chief picked its price competitiveness as the most attractive selling point of Luniverse.

"Luniverse offers diverse blockchain functions at a very reasonable price which is much cheaper than our major counterparts in the U.S.," he said. "Another key feature includes our market responsiveness. When receiving reviews and requests from our clients, we reflect their demands on our platform within a quarter on average."

Luniverse helps its users to set up their private blockchain system and enables them to easily access public chains such as Polygon, according to Lambda256.

The company reported solid sales growth last year. Its 2022 annual sales soared to 7.23 billion won ($5.46 million) from 2.75 billion won in 2021. But the company has yet to achieve a turnaround with its net loss reaching 46.5 billion won last year.

But Park shrugged off the loss, citing the company's business infancy.

"Most of the loss stemmed from our new investment and employee stock compensation," he said. "We are in a stage of exquisitely positioning ourselves as a more influential global firm. Even if sales are growing, relevant investment should also be executed."

Lambda256 CEO Park Jae-hyun delivers a speech during the Upbit Developer Conference 2020 that was held online on Dec. 4, 2020. Courtesy of Lambda256

Future of Luniverse

He expected the firm's sales to achieve threefold growth this year due to the overall growth of the blockchain industry.

"One prerequisite for sustainable blockchain industry growth here is to build an environment where developers can build and create better services without much difficulty, but this is not the case in Korea for such reasons as weak technological support and education," he said.

"We play a crucial role in helping them do so. As long as blockchain exists and more and more relevant data accumulates, the importance of blockchain infrastructure will grow bigger. We may gain more competitive edge than most mainnet players in the blockchain industry."

Expansion into financial sector

Lambda256 is rapidly expanding its blockchain presence amid its growing demand from conventional tech sectors as well as the financial industry. The company is a main partner for some major securities firms for their business on securities token offering (STO). Earlier this year, the country's top financial regulator granted approval for the issuance and distribution of securities tokens for digital trading of fractions of assets ― including real estate and art.

The firm has teamed up with Shinhan Securities and Hanwha Investment & Securities, helping the latter establish their relevant blockchain infrastructure and design digital wallets for the securities tokens transaction.

"After the governments approved the STO, more financial firms are requesting partnerships with us, as stable blockchain operation is key for their fresh revenue area," he said.

Lambda256 is also betting big on the growth potential of the STO market here and abroad. In January, the company decided to establish an investment fund worth 10 billion won for the ecosystem of the STO.

"The capital is used for joint technology development with our partners not just for the STO, but the era of the Web 3.0," he said.

The company is also widening its foothold in Web 3.0. for the blockchain system of Momentica ― a digital collectibles platform operated by Levvels, a joint venture set up by Dunamu and Korea's leading entertainment firm, HYBE. The U.S.-based company targets rapidly growing global fandom markets.

"Momentica is an innovative Web 3.0. service, and we will spare no efforts in offering optimal technological support for the platform," Park said.