Arc, Libra, and Monero: Exploring Arc's Revolutionary Blockchain Features and Privacy Innovations

• EVM Compatibility: Arc is Ethereum Virtual Machine (EVM)-compatible, allowing developers to seamlessly migrate or build decentralized applications (dApps) on its platform.

• Stablecoin-Centric Design: Arc addresses challenges such as transaction fee volatility, settlement uncertainty, and privacy concerns, making it ideal for stablecoin-based financial operations.

• USDC as Native Gas Token: Arc uses USDC as its native asset for transaction fees, employing a fee market mechanism inspired by Ethereum's EIP-1559 to ensure consistently low costs.

• Throughput: Arc achieves up to 3,000 transactions per second (TPS) with 20 validators and over 10,000 TPS with 4 validators.

• Finality Times: Transactions reach finality in under 350 milliseconds with 20 validators and 100 milliseconds with 4 validators.

Arc's validator network is permissioned, comprising geographically distributed, reputable institutions held to high accountability standards. This design mirrors Libra's institutional-grade reliability and security, ensuring robust performance and trustworthiness.

Privacy is a cornerstone of Arc's architecture, tailored for enterprise and B2B use cases. Its privacy features include:

• Confidential Transfers: Transaction amounts are encrypted while party addresses remain visible, balancing privacy with transparency.

• Selective Disclosure: Arc enables selective disclosure for regulatory compliance through mechanisms like 'view keys,' allowing auditors or regulators to access specific transaction data.

Arc employs modular backend technologies to implement its privacy features, starting with Trusted Execution Environments (TEE) and planning future integration of advanced cryptographic methods such as:

• Multi-Party Computation (MPC)

• Fully Homomorphic Encryption (FHE)

• Zero-Knowledge Proofs (ZKP)

• Constructive MEV: Activities like arbitrage that contribute to stablecoin price discovery.

• Harmful MEV: Activities like sandwich attacks that exploit users.

To mitigate harmful MEV while preserving beneficial activities, Arc's roadmap includes:

• Cryptographic memory pools

• Batch transaction processing

• Multiple proposers

• Libra: Known for its institutional focus and permissioned validator network, similar to Arc's design.

• Monero: Renowned for its privacy features, though Arc's modular privacy technologies offer a more enterprise-friendly approach.

While Arc primarily targets enterprise and institutional use cases, its advanced cryptographic technologies and stablecoin-centric design set it apart from both Libra and Monero.

Arc's roadmap outlines several exciting developments:

• Gas Fee Payments for Multiple Stablecoins: Arc plans to support gas fee payments for other stablecoins and tokenized fiat currencies through a dedicated 'Paymaster' payment channel.

• Privacy Enhancements: Continued integration of advanced cryptographic technologies to strengthen privacy features.

• Public Testnet Launch: Arc's public testnet is scheduled for Fall 2025, providing developers and institutions an opportunity to explore its capabilities.

Arc represents a significant leap forward in blockchain technology, combining high performance, privacy, and stablecoin finance applications to meet the needs of enterprise and institutional users. With its innovative features, nuanced approach to MEV, and competitive positioning against Libra and Monero, Arc is poised to make a lasting impact on the cryptocurrency ecosystem. As the public testnet launch approaches, the blockchain community eagerly anticipates the opportunity to experience Arc's groundbreaking capabilities firsthand.