Arc releases privacy white paper, providing a managed privacy solution for on-chain finance.

According to Mars Finance, Arc has released a privacy white paper and launched Arc Privacy, a confidential smart contract engine, to provide a managed privacy solution for on-chain finance. This optional feature aims to protect sensitive financial activities such as payroll, fund management, transaction workflows, and asset issuance, while preserving access for authorized parties such as auditors and compliance officers. Arc Privacy's design philosophy is "privacy with control," ensuring that sensitive details are not exposed to the public chain during transaction processing, while allowing authorized parties to access them when needed. Arc states that most public chains expose transaction data and smart contract states by default, making it difficult to migrate many real-world financial workflows on-chain. Arc's privacy features ensure that payroll should not become market data, fund flows should not expose counterparties and strategies, and transaction workflows should not broadcast intent before execution. In the future, Arc will also support developers building multi-step private applications within the EVM environment without having to start from scratch.