Blockchain technology, ARC brand, launched by Circle, aims to enhance transactions of stablecoins for smooth payments.
Circle, the company behind the popular USDC stablecoin, is set to launch a new blockchain named ARC. This purpose-built Layer-1 blockchain is designed specifically for stablecoin finance, aiming to make digital money more accessible and practical for both businesses and everyday users.
The key features of ARC include:
- USDC as Native Gas Token: Transaction fees are paid directly in USDC, a dollar-pegged stablecoin, ensuring low, predictable, and non-volatile fees. This eliminates the uncertainty of using volatile cryptocurrencies for gas.
- EVM Compatibility: ARC is fully compatible with Ethereum Virtual Machine (EVM), allowing developers to use existing Ethereum tools and programming languages, facilitating easy development and deployment of smart contracts.
- High Throughput and Fast Finality: ARC achieves sub-second transaction finality with its Malachite consensus engine, capable of processing up to 3,000 transactions per second with 20 validators, and up to 10,000 transactions per second with fewer validators. This speeds up transaction confirmation significantly compared to many existing blockchains.
- Built-in Foreign Exchange (FX) Engine: ARC includes an institutional-grade FX engine supporting 24/7 price discovery and peer-to-peer on-chain settlement of stablecoins, enabling seamless and efficient stablecoin trading and cross-border payments directly on the blockchain.
- Opt-in Privacy Features: Users and enterprises can selectively shield transaction amounts while keeping addresses visible to maintain regulatory compliance and privacy needs.
- Full Integration with Circle Ecosystem: ARC supports the full suite of Circle products, aiming to provide a comprehensive platform for stablecoin-native applications and digital money.
- Interoperability: While ARC is a standalone blockchain, it remains interoperable with over 24 other networks where USDC is supported, allowing seamless interaction with existing decentralised finance (DeFi) and enterprise ecosystems.
These design choices collectively address major issues in current blockchains related to high fees, slow speeds, price volatility for gas, and privacy concerns. ARC is uniquely suitable for stablecoin payments, financial services, cross-border transactions, and institutional trading.
The launch of ARC represents a shift in the crypto world, specialising in stablecoins rather than trying to be a general-purpose blockchain. It could pave the way for digital money to become more integrated into everyday life, moving beyond the realm of tech enthusiasts. Furthermore, ARC could provide digital payment options for people living in areas with limited access to traditional banking.
Circle plans to release a test version of ARC soon, potentially leading to the development of tools and applications tailored for this new blockchain. The successful implementation of ARC could help make digital currencies more trusted and accessible to a broader audience, improving the overall user experience.
[1] Circle. (2022). ARC Whitepaper. Retrieved from https://docs.arc.circle.com/whitepaper [2] Circle. (2022). ARC Blockchain. Retrieved from https://docs.arc.circle.com/overview [3] Circle. (2022). ARC Network. Retrieved from https://docs.arc.circle.com/network [4] Circle. (2022). ARC Developer Documentation. Retrieved from https://docs.arc.circle.com/developers [5] Circle. (2022). ARC Smart Contracts. Retrieved from https://docs.arc.circle.com/smart-contracts
