Binance Releases Official Proof of Reserves Based on Merkle Tree
Two weeks after its initial Merkle Tree-backed proof-of-funds pledge, Binance releases its official response to liquidity transparency.
New
Two weeks after Binance initially committed to developing a Proof of Reserve (PoR) mechanism in response to FTX's liquidity and bankruptcy fiasco, it released its official response.
In an announcement on Binance's website, the exchange explained how users can use the mechanism to verify its holdings. Currently, the only token available for verification through the Merkle Tree-based system is Bitcoin (BTC), although the announcement indicates that additional coins will be added in the coming weeks.
He also highlighted upcoming transparency updates, which include the involvement of third-party auditors to audit his PoR results and the implementation of ZK-SNARK in his PoR methods, among others.
Days after Binance announced its intention to PoR, it released public details of its wallet addresses and on-chain activity.
Binance CEO Changpeng “CZ” Zhao tweeted about the latest update. Naturally, the Twitter community responded and many with positive feedback on the transparency efforts.
This is an excellent initiative. Perhaps a standalone Proof of Reserves page where users can view all exchange holdings (updated daily) could be on the roadmap for...
Two weeks after its initial Merkle Tree-backed proof-of-funds pledge, Binance releases its official response to liquidity transparency.
New
Two weeks after Binance initially committed to developing a Proof of Reserve (PoR) mechanism in response to FTX's liquidity and bankruptcy fiasco, it released its official response.
In an announcement on Binance's website, the exchange explained how users can use the mechanism to verify its holdings. Currently, the only token available for verification through the Merkle Tree-based system is Bitcoin (BTC), although the announcement indicates that additional coins will be added in the coming weeks.
He also highlighted upcoming transparency updates, which include the involvement of third-party auditors to audit his PoR results and the implementation of ZK-SNARK in his PoR methods, among others.
Days after Binance announced its intention to PoR, it released public details of its wallet addresses and on-chain activity.
Binance CEO Changpeng “CZ” Zhao tweeted about the latest update. Naturally, the Twitter community responded and many with positive feedback on the transparency efforts.
This is an excellent initiative. Perhaps a standalone Proof of Reserves page where users can view all exchange holdings (updated daily) could be on the roadmap for...
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