What it is
The Pakana Node is the protocol-layer infrastructure for private payments on Stellar. It is built around a
single unusual property: it never custodies user funds. Funds move directly between sender and recipient via
Stellar's native ClaimableBalance primitive sent to a stealth address. The Pakana Node's only job is to verify,
on-chain, that a Groth16 zero-knowledge proof of correct delivery is valid.
Concretely, the Node is three coordinated components: an off-chain Rust ingestor that watches Stellar Horizon
for proof submissions, the PakanaTracker Soroban smart contract that performs on-chain ZK verification using
Stellar Protocol 25's BN254 host functions, and a fee-bumping relayer that allows users to submit proofs without
holding XLM for fees. None of these components has discretionary control over user funds at any point.
Regulatory posture
The Pakana Node is designed to fall outside Money Services Business and Virtual Asset Service Provider
classification. It does not pool, hold, exchange, or transmit user funds. It is a math verifier and a relayer.
The architectural separation between fund movement (Stellar native primitives) and proof verification
(PakanaTracker) is deliberate and central to the compliance story.