6. Architectural Overview

6. Architectural Overview

6.1 Compliance Filter and Trust Fabric

At the highest level, ENTRY functions as a compliance filter and trust fabric that governs how assets, users, and transactions enter and interact within the network. Every on-chain action must pass through a series of compliance checks before it can settle.

Ingress Point: Users and assets attempting to access the network are routed through compliance gateways. Validation: Credentials and provenance are verified by the Regulation LLM Compliance Engine, supported by zero-knowledge proofs that confirm eligibility without revealing personal information. Enforcement: Transactions are approved, quarantined, or denied based on programmable compliance logic. Auditability: All actions are recorded in an immutable ledger, providing regulators and institutions with transparent, verifiable audit trails.

This architecture ensures that no unverified participant and no unscreened asset can interact within ENTRY’s environment.

6.2 Identity and Access Layer

The Identity and Access Layer ensures that every participant in the network is verified and authorized.

• Decentralized Identity (DID): Each participant receives a DID anchored to off-chain KYC or KYB attestations.

• Zero-Knowledge Proofs (zkPs): Compliance attributes such as residency, accreditation, or sanctions status are verified cryptographically without exposing raw data.

• Reusable Credentials: Once issued, credentials remain portable across ENTRY-connected applications, ensuring efficient onboarding and a consistent compliance baseline.

The DID framework adheres to W3C standards and GDPR principles, ensuring interoperability with existing regulatory identity systems and privacy laws.

6.3 Asset Screening Layer

The Asset Screening Layer prevents illicit or high-risk capital from entering circulation. Screening is automated, continuous, and sourced from multiple intelligence feeds.

• Pre-Settlement Checks: Every asset entering the network is screened against global sanction lists, AML databases, and proprietary risk models.

• Provenance Tracking: Historical transaction data is analyzed to detect mixers, obfuscation attempts, or tainted flows.

• Ongoing Monitoring: Assets are monitored continuously, and any suspicious activity triggers automatic quarantining until reviewed by authorized compliance nodes.

This system ensures that ENTRY maintains a clean liquidity pool accessible to institutions and regulators worldwide.

6.4 Audit and Enforcement Layer

The Audit and Enforcement Layer transforms compliance from a manual obligation into an automated guarantee.

• Immutable Logs: Each verification, screening, or enforcement event is recorded on-chain and cannot be altered or erased.

• Programmable Compliance Rules: Smart contracts embed jurisdiction-specific restrictions such as investor eligibility, velocity controls, or asset-class permissions.

• Real-Time Alerts: Compliance officers and regulators can receive automated notifications of flagged events.

• Regulator Dashboards: Authorized oversight bodies can query proof-of-compliance records directly, without accessing user data.

This ensures compliance transparency without surveillance, providing a verifiable audit layer trusted by both institutions and supervisors.

6.5 Cross-Chain and Institutional Integration

ENTRY operates as a chain-agnostic compliance overlay. It is designed to integrate seamlessly across both public and private infrastructures.

• Public Networks: Ethereum, Solana, Avalanche, and similar ecosystems.

• Private Ledgers: Permissioned systems such as Corda or Hyperledger.

• CBDC Frameworks: Central-bank infrastructures requiring identity, auditability, and risk controls.

Standardized APIs and SDKs enable financial institutions to embed ENTRY’s compliance logic into their existing systems without the need to migrate infrastructure. This interoperability accelerates adoption while maintaining regulatory certainty.

6.6 Governance and Neutrality

ENTRY’s architecture is governed and maintained by the ENTRY Foundation and supported by the ENTRY Technology Team operating under the regulated VASP framework.

• The Foundation oversees community governance, parameter updates, and regulatory alignment.

• The Technology Team develops, audits, and maintains the compliance infrastructure to ensure technical resilience and regulatory compatibility.

This separation maintains neutrality and prevents any single commercial entity from controlling the protocol. All updates are approved through transparent governance procedures and subject to compliance validation before activation.

6.7 Security Framework

ENTRY employs a multilayered security model that combines cryptography, compliance logic, and real-time monitoring.

• Smart-Contract Integrity: All core contracts undergo external audits and formal verification.

• Operational Security: Validator infrastructure adheres to institutional standards for redundancy, key management, and disaster recovery.

• Compliance-Based Isolation: High-risk wallets or transactions are automatically quarantined, ensuring systemic protection.

This structure allows ENTRY to deliver institutional-grade reliability and continuous regulatory assurance.

6.8 Consensus and Validator Architecture

ENTRY operates on a Proof-of-Stake (PoS) consensus framework tailored for compliance-grade validation. Validators are responsible not only for block creation and transaction verification but also for enforcing compliance proofs at the consensus level.

Validator Eligibility: Only verified operators under the regulated VASP framework can participate as validators. Each validator must complete institutional-grade KYC and adhere to operational security requirements established by the Foundation.

Staking Requirements: Validators stake ENT tokens as collateral to ensure network integrity. Misconduct, such as processing unverified transactions or failing to maintain uptime, may result in slashing of staked tokens.

Finality and Performance: ENTRY’s consensus achieves sub-second block finality with deterministic validation. Compliance proofs are verified within each block, ensuring that regulatory enforcement occurs simultaneously with transaction settlement.

Governance Integration: Validator nodes participate in governance decisions proportional to their compliance performance and stake weight. Their authority is limited to operational functions and subject to oversight by the Foundation’s compliance council.

Upgradability and Auditability: Consensus parameters, validator policies, and reward structures can evolve through on-chain proposals, with all modifications logged and auditable in perpetuity.

This model combines the efficiency of PoS with the assurance of a regulated validation environment, delivering institutional trust without compromising decentralization.

6.9 Summary

ENTRY’s architecture unites regulatory trust and cryptographic assurance in a single framework.

• Identity Layer: Ensures only verified users participate.

• Asset Layer: Prevents illicit capital from circulating.

• Audit Layer: Guarantees transparency and traceability.

• Consensus Layer: Embeds compliance validation directly into network finality.

By integrating compliance, privacy, and governance into every layer, ENTRY transforms blockchain from a neutral ledger into a regulatory-grade financial infrastructure ready for global adoption.