Circle Announces Launch of ARC, a New Layer 1 Blockchain
According to a recent announcement on August 12, Circle, the issuer of the USDC stablecoin, plans to launch its own blockchain, called ARC, which aims to establish itself as a basic infrastructure for regulated money movement and support a globally distributed financial system. The company stated that “ARC aims to establish itself as a basic infrastructure for the regulated money movement and to support a globally distributed financial system.”
ARC will be fully integrated into Circle’s existing platform and maintain interoperability with dozens of other partner blockchains. The network will serve as a powerful basis for stable coin payments, foreign exchange (FX), and capital market applications. 
Key Features of ARC
The ARC network will be compatible with the Ethereum Virtual Machine and use USDC as its standard gas token. Additionally, it will introduce an integrated stable coin FX engine, processing finality, and optional data protection properties. According to the LitePaper of the Blockchain network, the performance goals of ARC include 3,000 transactions per second (TPS) with less than 350 millisecond end-to-end latency with 20 validators. Remarkably, the network could reach 10,000 TPS with four validators and under 100 milliseconds of finality.
ARC will also integrate confidential transfers and enable hidden quantities with visible addresses as well as selective disclosure via a “delay”. The network will support Circle’s Yuco, an interest-bearing stablecoin that is backed by short-term US financial securities. It also offers quick bridging via Circle’s CCTP and Gateway, an integrated currency trade system for approved institutions, and AI-driven treasury management tools. 
Community Reaction and Concerns
Despite its ambitious design, ARC has sparked concerns from members of the crypto community. Omid Malekan, an adjunct professor at Columbia Business School, argued that the introduction of another layer 1 blockchain, especially for stablecoins, is unnecessary and may struggle without a diverse range of assets or a strong DeFi ecosystem. Adam Cochran, a partner at Cinneamhain Ventures, also criticized the characterization of ARC as a layer 1 blockchain, stating that it is more accurately described as a consortium chain operated by a series of pre-approved private validators.
Cochran argued that the use of USDC as the root token eliminates the economic incentives necessary for validators to act independently and does not allow for a decentralized model. He stated, “There are blockchains because exploitative middlemen such as banks and transferred agents take inappropriate fees and use inappropriate censorship. This industry was built to fix this in peer-to-peer systems, not just through the construction of new banks.”
For more information, visit the original article at https://cryptoslate.com/circle-to-launch-l1-blockchain-called-arc-sparking-concerns-over-centralization-and-governance/
