Arc, as an open Layer-1 financial infrastructure, reshapes on-chain economics with USDC Gas stable fees and sub-second finality. This article analyzes its Malachite BFT consensus, optional privacy, and EVM compatibility design, revealing the vision for an enterprise-grade Web3 financial operating system.
The economic operation system positioning of Arc
Arc transcends traditional public chains, creating an open Layer-1 infrastructure designed specifically for global finance, integrating programmable funds and on-chain innovations to support a variety of applications such as lending, foreign exchange, and capital market payments. With four principles of stable fees, deterministic finality, optional privacy, and enterprise-grade usability, it becomes the standard channel for Web2 institutions to enter Web3.
The fee revolution of USDC Gas
Abandoning the volatility of native tokens, Arc uses USDC as the Gas pricing unit, with each transaction stabilizing at approximately 1 cent, allowing businesses to avoid concerns over market fluctuations affecting costs. The EWMA algorithm, an extension of EIP-1559, smooths out the fee rates, with future support for stablecoins like EURC and USDT as well as Paymaster payments, reducing the barriers to usage.
Malachite BFT’s ultimate guarantee
The self-developed Malachite consensus engine achieves sub-second block finality, eliminating the reorganization risks of PoS and PoW, with transactions being either unconfirmed or permanently confirmed. This financial-grade determinism enables instant triggering of smart contracts, relieving developers from retry logic and meeting the stability requirements of enterprises.
The Compliance Balance of Opt-in Privacy
Selective privacy phase one encrypts transaction amounts while keeping addresses publicly traceable; phase two reviews key authorization audits, balancing confidentiality and transparency. ZKP technology ensures that finality speed remains unchanged, providing compliant solutions for RWA assets and institutional applications.
Technical implementation of a dual-layer architecture
Consensus Layer Malachite BFT is based on PoA with high fault tolerance and sub-second confirmation, while the Execution Layer Reth EVM fully supports the Solidity toolchain. It features a built-in Fee Manager Privacy Module and Stablecoin Services, enabling stablecoin payments for foreign exchange settlements, with enterprise-grade security and low latency combined with openness.
Seamless integration of the EVM ecosystem
Fully EVM compatible, USDC ERC20 6 decimal standard cross-chain interoperability, real-time timing replaces epoch, Permissioned Validator ensures stability. Developers can directly deploy DApps integrating Circle API to accelerate the liquidity and payment services of stablecoins.
Summary
Arc builds a financial OS with USDC Gas Malachite BFT Opt-in Privacy, achieving a perfect balance between enterprise compliance and development efficiency, from fee stability to sub-second finality. The EVM-compatible architecture connects Web2 and Web3, signaling its central position in the core of the global capital market payment network and digital asset economy.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
