A gauge invariant exact renormalization group II

A manifestly gauge invariant and regularized renormalization group flow equation is constructed for pure SU(N) gauge theory in the large N limit. In this way we make precise and concrete the notion of a non-perturbative gauge invariant continuum Wilsonian effective action. Manifestly gauge invariant calculations may be performed, without gauge fixing, and receive a natural interpretation in terms of fluctuating Wilson loops. Regularization is achieved by covariant higher derivatives and by embedding in a spontaneously broken SU(N|N) supergauge theory; the resulting heavy fermionic vectors are Pauli-Villars fields. We prove the finiteness of this method to one loop and any number of external gauge fields. A duality is uncovered that changes the sign of the squared coupling constant. As a test of the basic formalism we compute the one loop beta function, for the first time without any gauge fixing, and prove its universality with respect to cutoff function.