- The cooperation makes it possible for institutional validators to set compliance rules that regulate which transactions and bundles may be included during the production of blocks.
- Each validator will be responsible for defining its own policy, which will ensure that validators maintain their autonomy while also providing operators with more choice over block-building choices.
Today, Flowra, the open orderflow auction and validator infrastructure platform for Solana, made an announcement about a cooperation with Honeypot, a supplier of compliance infrastructure, to include sanctions and risk screening directly into the process of block-building.
By combining Honeypot’s compliance intelligence with Flowra’s Programmable Block Policy (PBP), the cooperation makes it possible for institutional validators to set compliance rules that regulate which transactions and bundles may be included during the production of blocks.
The integration is intended to support screening against sanctions-related criteria, such as wallet addresses associated with sanctioned entities, as well as network-level indicators, such as virtual private networks (VPNs), proxy services, and Tor exit nodes. These are methods that are responsible for an estimated 31-61% of the traffic that arrives through network obfuscation. Additionally, during the course of its development, the framework will be built to accommodate other corporate compliance providers.
Each validator will be responsible for defining its own policy, which will ensure that validators maintain their autonomy while also providing operators with more choice over block-building choices.
“Public blockchains have become increasingly attractive to institutional participants, but the infrastructure hasn’t evolved to give validators the compliance controls many regulated operators expect,” said Harry Hwang, CEO of Flowra. “We’re working with Honeypot to bring compliance into the block-building process itself, allowing validators to define and enforce their own policies before transactions are included on-chain. The goal isn’t to make the network less open, it’s to give individual validators the flexibility to operate in a way that reflects their own requirements.”
In the beginning, the partnership will concentrate on screening for sanctions, screening for wallets, and auditability for regulated institutions. As the implementation process moves further, more technical details will be revealed.
Flowra is a blockchain infrastructure firm that is developing solutions for the Solana ecosystem, including validator and order flow systems. Technology is developed by the firm with the purpose of enhancing the transparency of transactions, the distribution of value, and the alignment of incentives among validators, users, and builders. Flowra’s goal is to provide a foundation for the next generation of blockchain networks that is more open, efficient, and scalable. This will be accomplished via the use of its validator architecture, delegation programs, and technologies connected to MEV.
Compliance intelligence is provided by honeypots to platforms that are functioning in accordance with geo-restriction and sanctions demands. Honeypot assists exchanges, DeFi protocols, and financial institutions in strengthening compliance controls and supporting regulatory audit needs. It does this by identifying proxy servers, virtual private networks (VPNs), Tor exit nodes, and other kinds of location obfuscation.
