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04

Stage 1 · Start Here · Lesson 04

Gas on Arc: why it's dollars

Every blockchain charges fees called gas. Arc is the first major network where gas is simply dollars — what gas is, why that matters, and what things cost.

Gas is blockchain jargon for transaction fees — the small payment that compensates the computers processing the network. Every blockchain has it. What is unusual about Arc is not that fees exist but what they are paid in.

The problem Arc removes

On most networks, gas must be paid in that network's own volatile token: ETH on Ethereum, SOL on Solana. That creates two headaches for a normal person. You must buy a second asset just to move your first one, and your costs swing with a token's price — the same transfer might cost $0.40 today and $4 next month. For businesses it is worse: imagine budgeting shipping costs in a currency that moves 8% overnight.

Arc's answer

The fee is paid in USDC, the digital dollar you are already holding. One asset does everything. A fee is a dollar amount, it is quoted before you confirm, and it stays a dollar amount. During Arc's test period, the average transaction has cost about $0.004 — four tenths of a cent.

What that buys you

Your transaction is final — irreversible, not probably confirmed — in under one second. Compare the rails you know: a card payment authorises in seconds but settles days later and can be reversed; a wire settles next business day. Arc settles finally, in under a second, for less than a cent. That combination is the entire pitch of the network, and it is why the operators recruited for it are payment companies.

What to expect

  • Keep a small USDC balance for fees, separate from the amount you intend to send.
  • Some wallet apps mislabel the balance ETH out of habit. It is dollars; the label is cosmetic.
  • Testnet fee levels are measured under no real economic load. Treat them as an indication only.

The practical takeaway: on Arc, fees stop being a topic. You will never think about gas prices, top up a second token, or get stranded unable to move your own money. You hold dollars, you spend fractions of pennies, things settle instantly.

Sources

  1. Arc official site
  2. Arc documentation

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