Electronics Giant LG launches Enterprise Blockchain platform, Monachian

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In December of 2015, the company launched a blockchain platform in which it "issued electronic stocks of unlisted companies unregistered at Korea Securities Depository". Their initial focus is to use Blockchain for common problems like logistics, supply chain management and digital authentication.

The new blockchain platform, called Monachain, has been created to enable blockchain-based logistics in the fields of finance, manufacturing and communication.

The blockchain-based platform from LG's subsidiary allows the users to conduct their respective financial operations as well as open digital wallets.

Monachain uses a decentralized identifier to enable verifiable digital identity wherein participants in the blockchain will be able to self-verify their identity over a smartphone before making a payment or remittance.

Monachain uses Distributed Identification Technology (DID) to allow customers to use a PIN or fingerprint for verification.

This is not the first time LG CNS has developed a blockchain system in South Korea.

Monachain will provide banks and local governments with a digital "currency community option" that will theoretically allow local governments to quickly and safely distribute welfare payments and other types of government assistance to the intended recipients. Since the word Mona is Greek for queen, the term Monachain was derived from the idea of being the queen of existing blockchains.

As for the Digital Supply Chain management tool, it can quickly communicate product information throughout the supply chain to every key stakeholder. LG CNS will provide a blockchain platform for banks, and banks will be in charge of currency issuance and distribution. The company stated that the blockchain service is meant to contribute to shortening production time, maintaining proper inventory, and minimizing transportation errors.

LG has also partnered with R3, the world's largest finance sector Blockchain consortium in May previous year. In addition, it is also a member of Open Blockchain Industry Association (OBCIA) and has plans to join the Linux Foundation's Hyperledger blockchain project as well.