Short answer
Arc does not replace OAuth everywhere. Arc adds the agent-specific layer that OAuth usually does not provide: allow, ask, or block for individual app actions.
Comparison
| Question | OAuth | Arc |
|---|---|---|
| Who is it built for? | Users authorizing apps and services. | Users authorizing AI agents to request actions. |
| Permission shape | Broad scopes or app access. | Specific actions with allow, ask, or block. |
| Approval moment | Usually at connection time. | At connection time and before sensitive actions. |
| Audit detail | Depends on the app. | Agent request, action, decision, result, timestamp. |
| Revocation | Revoke app access. | Revoke agent grants and block future action requests. |
Why API keys and broad scopes are risky
An agent with a broad credential can attempt actions beyond the user's intent. Even when the agent is helpful, the app should constrain the available actions and pause before side effects.
Example
A normal scope may say "email access." Arc lets the app say read_email is allowed, draft_reply is allowed, send_email asks the user, and delete_email is blocked.