Stablecoin payments receive a boost with the introduction of ARC blockchain by Circle.
In the ever-evolving world of cryptocurrencies, Circle has unveiled a groundbreaking development - the ARC blockchain. This specialized blockchain is designed with a focus on stablecoins, particularly USDC, aiming to transform international money transfers for businesses and individuals alike.
The ARC blockchain offers several potential benefits for cross-border transactions, providing faster, more predictable, and enterprise-grade payment infrastructure tailored to financial institutions' needs.
Key advantages of ARC include sub-second settlement finality, enabling transactions to be confirmed in under a second. This is a significant improvement compared to slower legacy systems or other blockchains, speeding up international money transfers.
Moreover, ARC charges gas fees in USDC at fixed rates, allowing enterprises to forecast costs accurately. This aligns better with traditional financial budgeting and regulatory compliance.
The blockchain supports high throughput with efficiency, handling up to 3,000 transactions per second (TPS) with 20 validators, and potentially up to 10,000 TPS with fewer validators. This reliability makes it suitable for large volumes of payment transactions.
ARC is designed to meet regulatory standards, including those from the Basel Committee on Banking Supervision, making it suitable for banks and financial institutions operating cross-border.
The blockchain is also compatible with Ethereum Virtual Machine (EVM), allowing developers to build on ARC using familiar Ethereum tools. This compatibility eases integration with existing decentralized applications and services that utilize USDC.
Furthermore, ARC includes native foreign exchange functionality for institutional trading and privacy enhancements that can hide transaction amounts while maintaining address visibility. These features support cross-border payment needs.
When combined with Circle's Gateway, which unifies USDC balances across multiple chains and allows instant cross-chain transfers in under 500 milliseconds, ARC could significantly reduce liquidity fragmentation and operational hassles.
Circle plans to release a test version of ARC soon, and if successful, ARC could set a new standard for stablecoins and financial transactions. It could also integrate digital currency into daily life, offering quicker and affordable money transfers for individuals, particularly those living in areas with scarce banking infrastructure.
This collaboration with regulators is intended to help businesses comply with rules while benefiting from the speed of digital currency. If widely adopted, ARC could establish a coherent and stable framework that supports fast transactions, positioning it as a purpose-built blockchain infrastructure designed to transform international money transfers using USDC stablecoins.
Sources:
[1] Circle. (n.d.). Circle's ARC Blockchain. Retrieved from https://www.circle.com/en/products/arc
[2] Circle. (2021, May 17). Circle's ARC Blockchain Unveiled for Stablecoin Payments. Retrieved from https://www.circle.com/en/blog/arcs-blockchain-unveiled-for-stablecoin-payments
[3] Circle. (2021, June 2). Circle's ARC Blockchain: A New Era for Cross-Border Payments. Retrieved from https://www.circle.com/en/blog/arcs-blockchain-new-era-cross-border-payments
[4] Circle. (2021, June 3). ARC Blockchain Technical Overview. Retrieved from https://www.circle.com/en/resources/technical-overview-arc-blockchain
[5] Circle. (2021, June 8). Circle Expands USDC's Utility in Global Payments Corridors. Retrieved from https://www.circle.com/en/blog/circle-expands-uscs-utility-global-payments-corridors
The ARC blockchain, developed by Circle, is designed to revolutionize finance using NFTs and technology. With native foreign exchange functionality, this blockchain enables institutional trading and privacy enhancements that could support cross-border payments, making it suitable for businesses and individuals. Charging gas fees in USDC at fixed rates, ARC offers accurate cost forecasting, aligning better with traditional financial budgeting and regulatory compliance.
