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Circle Acquires Malachite to Power Arc Layer-1 Stablecoin Blockchain

Circle Acquires Malachite to Power Arc Layer-1 Stablecoin Blockchain

According to Circle, the Malachite acquisition will accelerate development of Arc, an open-source Layer-1 blockchain for stablecoin finance, with a testnet launch planned later this year.

Fact Check
Multiple credible and independent sources, including Yahoo Finance, CoinDesk, and an announcement from Informal Systems (the seller), consistently confirm that Circle has acquired the Malachite consensus engine. The evidence specifies this acquisition is to power 'Arc,' a new 'stablecoin-focused Layer-1 blockchain'.
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Summary

Circle has acquired Informal Systems’ Malachite consensus engine to advance Arc, its open-source Layer-1 blockchain focused on stablecoin finance. Malachite, based on the Tendermint algorithm and designed for modularity, aims to enhance Arc’s performance, reliability, and security. Several Informal Systems team members will join Circle to work on Arc’s development, with a testnet expected later this year. Informal will continue supporting Malachite in other applications and blockchain projects.

Terms & Concepts
  • Consensus Engine: Core component of a blockchain that enables nodes to agree on the state of the ledger, ensuring transaction finality and network security.
  • Layer-1 Blockchain: The base blockchain protocol (e.g., Arc) that directly processes and validates transactions without relying on external networks.
  • Tendermint Algorithm: A Byzantine Fault Tolerant (BFT) consensus algorithm used in certain blockchains to provide fast finality and security through a proof-of-stake mechanism.