November 25th, World’s Largest Cryptocurrency Exchange Binance has unveiled Bitcoin’s Proof of Reserve (POR) system using the Merkle approach. At the time of writing, a snapshot provided by Binance shows that the company’s on-chain reserves are worth 582,485 Bitcoins and the company’s customers’ net balances are around 575,742 Bitcoins.
Binance’s Bitcoin Proof of Reserve ratio is currently at 101%
Binance has unveiled its Proof of Reserve system for Bitcoin. (BTC) company-held cash. The POR feature will initially start with Bitcoin holdings on Binance, but other “networks will be added in the coming weeks.” The news follows his recent demise of FTX and the crypto community insisting that a centralized digital currency trading platform prove its reserves. In addition to the cryptocurrency community, exchange executives like Kraken’s Jesse Powell also participated in his POR conversation.
Two days ago, Bitcoin.com News reported on Powell’s comments regarding the so-called POR list, which simply introduces digital currency addresses. Powell said the list of addresses is not a legitimate POR audit of his, stressing that a true POR audit of his would require “cryptographic proof of client balance and wallet control.” . Powell also shared a blog post written in 2014 titled “Proving Bitcoin Reserves“, which describesMarkle’s approach. Basically, the exchange uses hundreds of addresses, so he leverages the Merkle tree to consolidate all the data into one hash that can be cryptographically verified by anyone.
Nic Carter’s Proof of Reserve List or “Wall of Fame” lists centralized trading platforms that have submitted a “Full POR” audit. At the time of writing, Markle on the Wall of Fame has five of his crypto platforms sharing a full POR featuring his approach. However, three of them (Coinfloor, Gate.io, and HBTC) provided Merkle-based ratings in May 2020, May 2021, and August 2021. Moon. On Friday, Binance CEO Changpeng Zhao (CZ) tweeted about the company sharing his POR of the company.
Many crypto supporters are happy that Binance has shared his POR with the company. A whistleblower known as Fatman replied to CZ’s tweet. “This is amazing,” Fatman said. “I hope smaller exchanges will follow suit soon. Thank you for leading this very important initiative. Having cryptographic proof of local solvency is a significant game changer.”
Binance’s snapshot was recorded on November 22, 2022 at 23:59 PM. (UTC) and records show that Binance’s on-chain reserves are worth 582,485 BTC, and customers’ balances are worth 575,742 Bitcoins. This brings Binance’s reserve ratio to around 101%, and there is a section in the blog post that says you can ‘click to see’ the BTC assets held on Binance. To allow users to checkbalances andtransactions, simply log into Binance and click the Audit button in the Wallet section. “You can find Markle’s leaf and record ID within the page,” he explains Binance.
Furthermore, Binance revealed future plans for his POR list, including:
- Next He launches the next batch of PORs.
- Involve a third-party auditor to audit the results of the PoR
- Implement ZK-SNARKs in the POR to improve privacy and robustness and USD) to prove user is non-negative
PoR’s ZK-SNARK enables proof of reservation on Binance’s leveraged service. “Because Binance provides margin and loan services, the audit results will show each user’s net balance, net worth and debt. Net balance = net worth – debt,” concludes Binance’s blog post. increase. “That is why we have individual users with negative asset balances. That is why we are also working on implementing ZK-SNARKs. It is used to prove that you have assets, which proves that each user’s total net balance (USD) is non-negative.”
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