Centauri: A Peer-to-Peer Digital Currency System

What is Centauri

Friends, imagine we are living in an ocean world made up of many independent islands. Each island is a separate blockchain, such as Bitcoin Island, Ethereum Island, Polkadot Island, and so on. Each island has its own residents (users), its own language (protocols), and its own treasures (digital assets). The problem is, communication between these islands is very difficult—you can't directly send treasures from one island to another, nor can you easily talk to residents of another island. This creates a situation of “information silos” and “asset silos,” limiting the prosperity and development of the entire ocean world.

Centauri (CTX) can be understood as an ambitious “cross-sea bridge” project. Its goal is to break down the barriers between these islands, enabling different blockchains to freely transfer information and assets as if they were on the same continent.

Specifically, Centauri is an extension based on the existing Inter-Blockchain Communication Protocol (IBC). The IBC protocol is like a set of universal “navigation rules,” originally used mainly to connect different blockchains within the Cosmos ecosystem (think of these as islands in the Cosmos family). Centauri’s innovation is that it is the first to extend these “navigation rules” beyond the Cosmos family, to islands like Polkadot and Kusama.

This project is developed by the Composable Finance team, whose goal is to build a seamlessly connected decentralized finance (DeFi) world, allowing users to use any asset on any chain and realize the vision of “any currency, anywhere.”

Project Vision and Value Proposition

Centauri’s core vision is to achieve a “grand unification” of the blockchain world, so that all blockchains are no longer isolated entities but can interconnect as a whole.

Core problems it aims to solve:

• Fragmented DeFi ecosystem: The current decentralized finance (DeFi) world is like treasures scattered on different islands. Users who want to use services on different islands often need to perform complex cross-chain operations, and may even face the risk of asset loss. Centauri aims to provide a unified communication layer, allowing users to operate seamlessly across different chains.
• Limited user base and growth potential: Isolated blockchains restrict the user scale of each project and the overall growth of the DeFi market. Interconnectivity can attract a broader user base and promote large-scale adoption across the blockchain industry.
• Trust-minimized cross-chain communication: Many existing cross-chain solutions require users to trust third-party bridge services, which introduces centralization risks. Centauri is committed to providing a “trust-minimized” solution, meaning users do not need to overly trust any intermediary, but rely on the protocol’s own security to ensure the safe transfer of assets and information.

Differences from similar projects:

Centauri’s most notable feature is that it extends the scope of the IBC protocol beyond the Cosmos ecosystem. Previously, the IBC protocol was mainly used for inter-chain communication within Cosmos, but Centauri, by developing custom light clients and relayer infrastructure, has successfully brought non-Cosmos chains like Polkadot and Kusama into the IBC interconnectivity network. This is like not only providing translators between islands that speak different languages, but also directly teaching them to speak a common language, enabling deeper and more secure communication.

Technical Features

Centauri’s technical core lies in its clever use and extension of the IBC protocol.

Technical Architecture:

• Extended IBC protocol: Centauri did not invent a brand new cross-chain protocol, but innovated on the existing, proven IBC protocol. The IBC protocol is a universal messaging protocol that can be used not only for asset transfers but also for more complex inter-chain communication.
• Custom light clients: To enable non-Cosmos chains to understand and verify IBC messages, Centauri developed custom light clients. You can think of a light client as a “mini translator”—it doesn’t need to download all the data from a blockchain, but only verifies key information to confirm whether messages from other chains are genuine and valid.
• IBC-rs: This is an IBC library implemented in Rust, making it easier for any Rust-based blockchain (such as many chains in the Polkadot ecosystem) to integrate IBC functionality.
• Relayer infrastructure: Relayers act as “messengers,” responsible for transmitting IBC messages between different blockchains. Centauri has established a dedicated relayer network to ensure messages are reliably and promptly transmitted across chains.
• Cross-chain virtual machine (XCVM): Composable Finance has also proposed the concept of a cross-chain virtual machine (XCVM), which allows developers to create applications that can execute across multiple blockchains. This is like providing a “universal operating system,” so applications are no longer limited to a single blockchain and can call resources and execute logic on different chains.

Together, these technologies enable Centauri to achieve “chain-agnostic” IBC, allowing the IBC protocol to connect as many blockchains as possible, not just those within the Cosmos ecosystem.

Tokenomics

Regarding the Centauri project itself, it is more of an infrastructure-level solution aimed at providing cross-chain communication capabilities, so there is currently no independent token named CTX.

Centauri is developed by the Composable Finance team, and Picasso under Composable Finance is a Layer 1 blockchain with its own native token $PICA. The $PICA token plays a role in the Picasso ecosystem, such as for transaction fees and governance. Therefore, if you are interested in tokens related to Centauri, you may need to pay attention to the tokenomics of Composable Finance and the Picasso project.

Please note: This introduction does not constitute any investment advice. The cryptocurrency market is highly volatile and investing carries risks. Please be sure to conduct thorough personal research.

Team, Governance, and Funding

The Centauri project is an important part of the Composable Finance team.

• Core members: The founder and CEO of Composable Finance is 0xbrainjar.
• Team characteristics: The Composable Finance team is dedicated to solving blockchain interoperability challenges and promoting large-scale DeFi adoption through innovative technologies such as Centauri and the cross-chain virtual machine (XCVM).
• Governance mechanism: As part of the Composable Finance ecosystem, Centauri’s development and direction may be influenced by Composable Finance’s overall governance mechanism. Typically, such projects use their native tokens (such as Picasso’s $PICA) for decentralized governance, allowing holders to vote on protocol upgrades, parameter adjustments, and more.
• Funding: As one of Composable Finance’s core technologies, Centauri’s funding comes from Composable Finance’s overall financing and development. Composable Finance aims to build a comprehensive DeFi infrastructure, so Centauri’s development is part of its strategic investment.

Roadmap

Centauri’s development roadmap mainly focuses on expanding and perfecting its cross-chain connectivity capabilities:

• Historical milestones:
  • October 2022: Composable Finance announced the expansion of Centauri to the NEAR ecosystem and successfully merged NEP-364, paving the way for IBC on NEAR.
  • January 2023: Announced the launch of the Centauri testnet and conducted testnet-to-testnet interactions with multiple teams in the Cosmos ecosystem (including Osmosis, Stride, Babylon, Duality).
  • July 2023: Centauri achieved the first trust-minimized connection between Polkadot and Cosmos and went live on mainnet. The first official connection was between Composable’s own Picasso parachain and Osmosis.
• Future plans:
  • Expansion to more ecosystems: Centauri plans to extend IBC connectivity to more mainstream blockchain ecosystems such as Ethereum and NEAR.
  • L2-L2 communication: Exploring communication between Layer 2 solutions via IBC.
  • Aptos integration: Exploring bridging with Aptos.
  • Realizing the vision of “any currency, anywhere”: The ultimate goal is to allow users to use any asset on any chain without needing to perceive the underlying complex cross-chain technology.

Common Risk Reminders

Although Centauri is committed to solving the important problem of blockchain interoperability, any blockchain project comes with inherent risks. Here are some common risk reminders:

• Technical and security risks:
  • Smart contract vulnerabilities: Even audited code may have unknown vulnerabilities that could lead to asset loss.
  • Cross-chain bridge security: Cross-chain bridges are key infrastructure connecting different blockchains and are common targets for hackers. Although Centauri emphasizes “trust minimization,” its complexity may still introduce potential risks.
  • Protocol upgrade risks: Upgrades and modifications to the protocol may introduce new vulnerabilities or cause compatibility issues.
• Economic risks:
  • Market volatility: The entire cryptocurrency market is highly volatile, and project tokens (such as Picasso’s PICA) may be affected by macroeconomic factors, market sentiment, and project progress.
  • Liquidity risk: If the relevant tokens have insufficient trading volume, it may result in large bid-ask spreads and difficulty in quick trading.
• Compliance and operational risks:
  • Regulatory uncertainty: Global regulatory policies for cryptocurrencies and blockchain technology are still evolving, and future policy changes may impact project operations.
  • Competitive risk: The cross-chain interoperability field is highly competitive, and Centauri needs to continuously innovate to maintain its leading position.
  • Team execution risk: The success of the project largely depends on the development team’s execution ability and the realization of the roadmap.

Important note: The above information is for educational purposes only and does not constitute any investment advice. Before participating in any cryptocurrency project, please conduct thorough personal research and fully understand the risks involved.

Verification Checklist

If you want to learn more about the Centauri project, you can refer to the following resources:

• Composable Finance official website: This is the parent company of the Centauri project and usually provides the most authoritative project information and updates.
• Composable Foundation Medium blog: Many detailed technical articles and progress updates about Centauri are published here.
• GitHub repositories: Look for Composable Finance or Centauri-related GitHub repositories to check code activity, development progress, and community contributions.
• Picasso block explorer: Since Centauri is closely related to the Picasso parachain, you can view activities and data on the Picasso chain.
• Relevant community forums/social media: Follow the official accounts and community discussions of Composable Finance and Centauri on Twitter, Discord, and other platforms for the latest updates.

Project Summary

Friends, the Centauri project is like a “bridge engineer” in the blockchain world, working hard to build bridges connecting different “digital islands” so that previously isolated blockchain ecosystems can interconnect.

Its core value lies in extending the powerful IBC protocol, enabling non-Cosmos chains such as Polkadot and Kusama to join this trust-minimized cross-chain network. This means that in the future, we may see a more unified and liquid DeFi world, where users can more freely transfer assets and use services across different chains without needing to perceive the underlying complex cross-chain technology.

Centauri’s technical features, such as custom light clients and relayers, as well as Composable Finance’s proposed cross-chain virtual machine (XCVM), are all aimed at achieving this grand goal. Although Centauri itself does not have an independent token, it is a key infrastructure within the Composable Finance ecosystem and is closely related to the Picasso parachain and its native token $PICA.

Of course, any innovation comes with risks. Technical challenges, security vulnerabilities, market volatility, and regulatory uncertainty are all aspects we need to pay attention to.

Overall, Centauri is a project of great significance in the field of blockchain interoperability, laying the foundation for a truly multi-chain interconnected future. If you are curious about the future development of blockchain, Centauri is definitely a direction worth exploring in depth.

Remember, all the above content is for educational and informational sharing only and does not constitute any investment advice. The cryptocurrency market is high-risk, so please do your own research and make decisions cautiously.