A.R.C. Technology
With the increasing threat of the Dragon Orphans, the need to come up with an effective means to combat them became more apparent to leaders of the world. While the RC cells of the Dragons Orphans were not as effective as the ones found in Ghouls or even humans, they were still enough so to render them invulnerable to most conventional weapons. Aside from weapons made from RC cells harvested from Ghouls, only weapons designed to pierce armor could effectively kill them.
As one would surmise the later was not economically feasible. The former also had its own problems in that RC cells could only be harvested from willing volunteers. Said volunteers where in short supply due to lingering animosity between humans and ghouls at the time. As a result weapons able to kill Dragon Orphans quickly and effectively were limited.
In response, the various Dragon Extermination Commissions throughout the world were tasked by their respective governments to come up with an alternative method of killing the Dragon Orphans. It wasn't until 2031 that a breakthrough was made, the creation of Artificial RC cells, or ARC cells. While not as strong as their natural counterparts ARC cells were still deemed sufficient enough to combat the Dragon Orphans. By coating a standard bullet in a thin layer of ARC cells they could readily pierce the tough skin of the Dragon Orphans allowing them to tear at their much more vulnerable organs, resulting in death. What's more now that a method had been established and fully researched ARC cells could be cheaply mass-produced.
With the mass production of ARC cells, the Dragon Extermination Commissions were able to both equip their personal with the weapons they need and to swell their numbers. As time passed methods for creating armor for vehicles and personal by directly infusing ARC cells into the materials used to build them were developed. The survivability of the soldiers of the alliance was dramatically increased during the 2nd Dragon War, as a result.
In the years during and following the 2nd D-War, ARC cells were used in both military and civilian construction. As such Federation technology is partially biological, to prevent potentially crippling blows to their way of life the Terran Federation as done extensive research into finding ways to render Arc cells immune to biological attacks. Members of other races have described Terran ships and other constructs as feeling strangely alive, leaving them to feel somewhat unsettled.