Skip to main content

​
Trustless Compliance

PayWithZ is the first platform where compliance is enforced by blockchain code, not promises. This means regulators can verify compliance without trusting any third party.

​
How It Works

​
Transfer Hook Technology

Solana’s Token-2022 program includes a transfer hook extension. This allows custom programs to run automatically on every transfer.
This cannot be bypassed - Transfer hooks are enforced by Solana at the protocol level. No transaction can complete without going through the compliance check.

​
Compliance Checks

Every transfer automatically checks:
Sender SBT Check
  • Does sender have a valid SBT?
  • Is SBT not expired?
  • Is SBT not revoked?
Receiver SBT Check
  • Does receiver have a valid SBT?
  • Is SBT not expired?
  • Is SBT not revoked?
  • Is sender on blacklist? (checked via Merkle tree)
  • Is receiver on blacklist? (checked via Merkle tree)
  • Efficient on-chain storage using Merkle proofs
  • Transaction amount within limits?
  • Frequency within limits?
  • Custom rules per wallet or jurisdiction
  • Passes all risk checks?
  • No suspicious patterns?
  • Custom policy enforcement

​
On-Chain Enforcement

​
Merkle Tree Efficiency

PayWithZ uses Merkle trees for efficient on-chain storage:

Allow List

Merkle tree of approved wallets. Efficient storage.

Blacklist

Merkle tree of blocked wallets. Fast lookups.
Benefits:
  • ✅ Minimal on-chain storage
  • ✅ Fast verification
  • ✅ Easy updates
  • ✅ Cost efficient

​
Compliance Transparency

​
For Users

  • Clear error messages when transfers are blocked
  • Reason codes for compliance failures
  • Transaction status visible in dashboard

​
For Regulators

  • All transactions visible on-chain
  • Complete audit trails
  • Real-time monitoring capabilities
  • Automated reporting

​
For Admins

  • Dashboard with compliance metrics
  • Blocked transaction analysis
  • Policy configuration
  • Real-time alerts

​
Compliance Features

Automatic

No manual approval needed. Runs automatically.

Real-Time

Checks happen in milliseconds during transfer.

Transparent

All checks visible on-chain. Fully auditable.

Updatable

Policies can be updated without redeploying.

​
Why This Matters

​
Traditional Approach

  • Compliance relies on promises
  • Requires trust in third parties
  • Difficult for regulators to verify
  • Can be bypassed

​
PayWithZ Approach

  • Compliance enforced by code
  • No trust required
  • Regulators can verify on-chain
  • Cannot be bypassed

​
Next Steps

KYC Flow

See how KYC works

Transfer Flow

Understand transfer process