Circle’s Layer 1 blockchain Arc just published its “Arc Privacy Sector” whitepaper, laying out an architecture that tries to solve one of crypto’s oldest headaches: how to give institutions the privacy they need without creating a regulatory black hole.
The proposal merges public and private Ethereum Virtual Machine execution environments into a single blockchain framework.
How the dual execution model works
At the core of Arc’s design are hardware enclaves, specialized secure computing environments that process confidential smart contracts. These enclaves ensure sensitive transaction details stay hidden from the general public while remaining accessible to parties like auditors and regulators who have been granted explicit permission.
The whitepaper describes a system where private and public actions can be processed in the same block, preserving the composability that makes EVM-based chains useful in the first place.
