Consensus layer
Arc runs on Malachite, a high-performance implementation of the Tendermint Byzantine Fault Tolerant (BFT) protocol. Malachite ensures:- Deterministic finality: Blocks finalize in less than one second.
- Irreversibility: Transactions cannot be reorganized or rolled back once committed.
- Resilience: Validators commit blocks under a Proof-of-Authority model.
Execution layer
Arc’s Execution layer is built on Reth, a Rust implementation of the Ethereum execution layer. It maintains the blockchain ledger and state, and extends it with components optimized for stablecoin finance:- Ledger and State: Stores accounts, balances, smart contracts, and transaction history.
- Fee Manager: Stabilizes and smooths fees using USDC as the unit of account.
- Privacy Module: Provides confidential transfers and selective disclosure via view keys.
- Stablecoin Services: Powers multi-currency payments, FX conversions, and programmatic settlement across supported stablecoins.
System architecture diagram
The diagram below shows Arc’s architecture at a high level. The Consensus layer determines the order of transactions and finalizes blocks. The Execution layer applies those transactions to the ledger and processes them through its internal modules.Developer benefits
By understanding Arc’s system architecture, you can:- Trust that your transactions finalize instantly and irreversibly.
- Build on a familiar EVM-compatible stack (Reth) with stablecoin-native extensions.
- Leverage built-in financial components like Fee Manager, Privacy, FX, and paying in other stablecoins without needing external workarounds.
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