LG, the S. Korean consumer electronics giant announced it will be joining Hedera Hashgraph’s Governing Council, alongside IBM, Google, Tata, Deutsche Telekom, Boeing, and other industry leaders on Wednesday, May 25th via its official corporate press release portal.
In case you’re unfamiliar with Hedera, it is a U.S. based organization designed to be governed by up to thirty-nine (39) cream-grade companies, replicating the decentralized aspect of public blockchains in a relatively private distributed ledger.
The Hedera Hashgraph Council is supposed to make sure the network runs as agreed by the company members instead of a central entity as happens in most private blockchain scenarios.
Read More: Hedera Hashgraph Offers Blockchain Solution To Couponing Industry
Of course, the companies involved with Hedera, which btw has its own native cryptocurrency called the “HBAR”, are not the typical crypto startups you’d expect to pull an ICO using a $50 dollar “corporate” WordPress theme, but actual hi-tech pioneers.
One might argue that this is not the first attempt of an analogous use-case, with Facebook’s Libra Association throwing names of the likes of Vodafone, Mastercard, and Paypal in order to provide a layer of assurance Libra’s not a shackled currency.
Obviously, regulators and financial watchdogs all over the globe didn’t drink form Facebook’s cup, and Libra ended up being more of an unpleasant fantasy that managed to urge economic superpowers such as China, the EU, and the US to start working on their own future-proof financial system, instead of the savior crypto it intended to become.
The publication entitled “LG Joins Hedera Governing Council to Accelerate Innovation and Adoption of Public DLT Globally“, suggests that joining Hedera’s steering committee would allow LG to reach beyond blockchain in order to usher in the next era of “Fast, Fair, and Secure Applications”, probably referring to monetary settlements and electronic payments.
LG is chronologically the 14th entry at the Hedera Governing Council, while it plans to work with previous additions in an attempt to identify new ways blockchain technology could benefit global consumers.
“We look forward to being a part of the Hedera Governing Council and opportunities where we can collaborate with other leading organizations across a wide range of industries to further develop the application of distributed ledger technology to benefit businesses and consumers alike.” – Cho Taeg-il, VP at LG Electronics said in the statement.
LG’s stock jumped from 55,500 KRW to 59,800 KRW in a matter of hours since the announcement and under some lens, this specific partnership might be the lifting LG needed to re-enter the frontline of technological innovation.
On the other hand, Hedera’s own crypto jumped from $0,03 apiece to occupy a position short behind $0.05 per HBAR indicating that more crypto enthusiasts are excited about LG’s entry to the governing council of Hedera, than those excited about LG announcing a blockchain strategy.
We reached LG in order to elaborate on the partnership and had a quick one with Ken Hong and Cho-Taeg-Il:
LG is a top-shelf consumer electronics giant. How does the company intend to utilize distributed ledger technology in-house? Will it be for tracking consumer goods, internal payments, and settlements network? or blockchain becomes a focus for the company?
While it’s still too early to talk specifically about how LG will benefit from DLT, one possibility might be to reward customers for using LG products and services.
How does LG plan to contribute to Hedera Hashgraph, what LG expects from Hedera? Why did you choose Hedera (a decentralized private DLT), instead of a decentralized public DLT (Ethereum) or a centralized private DLT (Corda, Hyperledger)?
LG was attracted to Hedera Hashgraph because it is a third generation technology with micropayment support, significantly faster compared to other first and second generation platforms.
How big do you expect the blockchain impact to be in global economies?
LG joined the Hedera Governing Council for the purpose of exploring new opportunities and to have a voice in the discussion around the direction of DLT. The global impact of blockchain and DLT will be debated for years but we felt we needed to be involved now to help shape that conversation.
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