Sergey Gorbunov on TEEs and the Arc Privacy Sector

This week, Anna speaks with Sergey Gorbunov, Engineer at Circle, about Arc, Circle’s new EVM-compatible Layer 1 blockchain, and its approach to a TEE based on-chain privacy. They begin by revisiting Sergey’s journey from Axelar to Circle, reflecting on the evolution of cross-chain infrastructure, the aftermath of the Terra collapse, and how Circle’s acquisition of Interop Labs led to the development of Arc. The conversation then turns to Arc’s architecture, including its privacy layer, known as the Privacy Sector, and the decision to build it around Trusted Execution Environments (TEEs) rather than ZKPs or FHE. Sergey explains the design trade-offs, discussing privacy, composability, enterprise infrastructure, and why he believes TEEs are currently the most practical foundation for programmable private execution. Related Links

• Axelar Network
• Arc Privacy Sector: Keeping Blockchain State, Transactions, and Accounts Private and Quantum Safe
• Circle’s Post-Quantum Security Roadmap
• Arc Documentation
• Arc: An open Layer-1 blockchain purpose-built for stablecoin finance
• Sergey’s X Post on the Arc Privacy Sector paper
• Ian Mier’s X Response to the Arc Privacy Sector works

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