Expanded Crypto Shelter: Ripple Chief Technology Officer Reports Growing Cryptocurrency Canopy
In a significant move, Circle, a major player in the cryptocurrency industry and a rival to Ripple, has announced the launch of its own layer-1 blockchain, named "Ark." The new blockchain is purpose-built for stablecoins and financial applications, aiming to be "the home for stablecoin finance."
According to Circle, Ark will boost the stablecoin ecosystem by offering several key features. One such feature is the use of USDC as the native gas token, allowing transaction fees to be paid directly in USDC rather than a volatile cryptocurrency. This design ensures low, predictable, and dollar-denominated fees, helping businesses avoid the uncertainty of traditional gas fee spikes.
Ark also promises sub-second transaction finality, enabling fast settlements suitable for payments, foreign exchange, and capital markets. The blockchain will integrate a stablecoin FX engine to facilitate multi-currency stablecoin payments and conversions within the network. It will also offer optional privacy controls for users, enhancing confidentiality where needed.
Moreover, Ark will maintain full interoperability with Circle’s broader platform and the 24+ blockchains where USDC is already supported, including Ethereum, enabling seamless cross-chain stablecoin operations.
By controlling the underlying blockchain infrastructure with Ark, Circle can directly optimize performance, security, and integration specifically tailored to stablecoin use cases, thereby supporting its vision of a full-stack platform for the internet financial system and accelerating adoption of USDC in enterprise-grade payments and capital market applications.
David Schwartz, the CTO of Ripple, has commented on this development, stating that the crypto tent is getting bigger. However, he emphasized that the XRPL network, which has gained real traction over the past 13 years, is different from Ark. The XRPL network, unlike Ark, has been battle-tested, updated, and improved upon for over a decade.
Schwartz also pointed out that the XRPL network is public, permissionless, but also has optional permissioned features. This sets the XRPL network apart from some other blockchains that are specifically built with permissioned validator sets.
It's worth noting that some critics have pointed out that the lion's share of other XRPL validators tend to be Ripple-adjacent. However, Schwartz has previously stated that Ripple has no control over the XRPL.
Circle's announcement follows a statement made by Ripple's CTO regarding the ongoing debate about decentralization vs. centralization. Schwartz believes that blockchains are now viewed as core financial infrastructure.
As for Ark, it is expected to enter private testing in the near future. The launch of Ark by Circle is not mentioned in Schwartz's previous statements.
In conclusion, the introduction of Ark by Circle marks a significant step in the cryptocurrency industry, particularly for stablecoins and financial applications. The XRPL network, on the other hand, continues to stand as a battle-tested and long-term solution in the blockchain landscape.
