Roundtable: Arc's Core Design Features

In this Arc Experience roundtable, Gordon Liao (Chief Economist & Head of Research), Adrian Soghoian (Principal Software Engineer), and Adi Seredinschi (Principal Product Manager) walk through the core design features that define Arc’s technical and economic foundation.

They begin with one of Arc’s most important characteristics: deterministic finality. Gordon explains that in traditional finance, settlement finality is more than a feature—it is a core regulatory and legal requirement. Adrian describes how Arc’s Malachite consensus, built on Tendermint-style communication, allows validators around the world to reach agreement within 300–350 milliseconds. This creates near–“speed of light” deterministic finality, essential for institutional-grade settlement.

The conversation then turns to stable gas fees, a long-standing pain point for developers. Arc addresses this through two mechanisms. First, transactions are natively priced in fiat-backed stablecoins, which immediately stabilizes the unit of account for fees. Second, predictable fees improve user experience, particularly for enterprises that cannot hold volatile tokens on their balance sheet.

Adrian details another structural advantage: because Arc launches with a permissioned validator set of experienced operators, it can support dynamic block sizing. If network congestion spikes, protocol parameters can be adjusted rapidly and rolled out to all validators without requiring a full network upgrade. This preserves system responsiveness while maintaining operational safety.

Gordon discusses how the validator foundation itself is a critical part of Arc’s stability. Validators are vetted institutions: established crypto infrastructure teams, financial institutions, and operators with demonstrated reliability. This ensures that the network is run by organizations capable of meeting the standards required for global economic activity.

Looking ahead, the team outlines Arc’s evolution. At launch, Arc uses a permissioned proof-of-authority model with governance-assigned voting power. Over time, Arc will transition to proof of stake, allowing a broader set of participants to stake assets and dynamically determine voting power. This represents a natural progression toward greater decentralization.

Adi notes that these features—finality, stability, dynamic flexibility, validator quality—create a meaningful shift in how builders and users experience onchain applications. Smart contracts deployed on Arc will feel different: more responsive, more reliable, and tailored for real-world economic activity.

They close by reinforcing that Arc is not only designed for stablecoin-centric finance, but for the broader global economy. Its foundation is engineered to bring mainstream economic activity onchain and make blockchain infrastructure accessible to the masses.

Arc is offered by Circle Technology Services, LLC (“CTS”). CTS is a software provider and does not provide regulated financial or advisory services. You are solely responsible for services you provide to users, including obtaining any necessary licenses or approvals and otherwise complying with applicable laws.
Arc has not been reviewed or approved by the New York State Department of Financial Services.
The product features described in these materials are for informational purposes only and may be modified, delayed, or cancelled without notice at the sole discretion of Circle Technology Services, LLC. Nothing herein constitutes a commitment, warranty, guarantee, or investment advice.