whitepaper Kanari SDK

2 Architecture & Centauri Consensus

2.1 What is DAG Consensus?

Traditional blockchains process transactions one block at a time, creating bottlenecks for payment systems. Kanari uses a Directed Acyclic Graph (DAG) structure that allows multiple validators to process transactions simultaneously.

Key Difference:

• Blockchain: Linear sequence → Slow, sequential processing
• DAG: Parallel structure → Fast, concurrent processing

This makes DAG ideal for high-frequency payment networks requiring instant settlement.

2.2 How Centauri Consensus Works

Centauri uses the Bullshark protocol with a simple 3-round commit process:

Round 1: Leader creates a vertex (transaction batch) Round 2: Other validators reference the leader's vertex
Round 3: If enough validators agree, the vertex is committed

Mathematical Formulas

Byzantine Fault Tolerance (BFT) For a network with n validators:

• Maximum faulty validators tolerated: f = floor((n-1)/3)
• Minimum honest validators needed: 2f + 1

Example Calculation:

• With 4 validators: f = floor((4-1)/3) = 1
• Need 2(1) + 1 = 3 honest validators to reach consensus

Throughput Formula Maximum Transactions Per Second (TPS):

TPS = (Validators × Transactions per Vertex) / Finality Time

Example:

• 4 validators × 500 transactions per vertex ÷ 0.3 seconds = ~6,667 TPS
• With optimizations: Up to 50,000+ TPS

This throughput supports global payment volumes including e-commerce, remittances, and financial services.

2.3 Performance Characteristics

These metrics make Kanari suitable for real-time payment processing across all industries.

2.4 Security Model

Network Security Formula: The probability of network compromise decreases exponentially with more validators:

Security = 1 - (f/n)^k

Where:

• f = maximum faulty validators
• n = total validators
• k = number of consensus rounds

Light Client Verification Light clients verify transactions using Merkle proofs:

verify_proof(state_root, account_data, merkle_path) = true/false

This allows mobile wallets, e-commerce platforms, and banking apps to verify payments without running full nodes.

2.5 Simple Architecture Overview

Kanari's system is built from specialized components:

Core Components:

• centauri: Handles consensus and transaction ordering
• kanari-core: Coordinates the entire system
• kanari-move-runtime: Executes smart contracts safely
• kanari-crypto: Provides secure cryptography
• kanari-node: Runs the complete network node

Each component has a specific job, making the system reliable and maintainable for universal payment applications.