Binance publishes POR for BTC, more assets to follow

As a demonstration of its dedication to maintaining openness in the wake of the failure of the major cryptocurrency exchange FTX, the first Merkel Tree Proof of Reserves (PoR) system was launched by Binance today.

 

The cryptocurrency exchange, however, noted in a statement that it would first share information about its BTC holdings "in the next couple of weeks" before discussing the specifics of other tokens and networks.


We have published additional updates on Binance's Proof of Reserves as part of our continuous commitment to openness in the cryptocurrency industry. In the not-too-distant future, there will be further changes about $ETH, $USDT, $USDC, BUSD, and BNB. Keep an eye out!"

According to the statement, Binance's onchain reserve currently contains 582,485.9302 BTC, and the customer net balance currently stands at 575,742.4228 BTC. The customer's deposits are covered by the exchange's reserve on a one-to-one basis, which the exchange further mentioned to reassure clients that their money is secure.


According to the statement, whenever a user makes a deposit of one Bitcoin, Binance's reserves increase by at least one Bitcoin in order to guarantee that client funds are completely backed. It is essential to keep in mind that this does not include Binance's business assets, which are recorded on a whole other ledger.


As a consequence, the exchange mentioned that it did not have any debt in its capital structure, and it further mentioned that it had ensured that it had a reserve account for unexpected events called a SAFU fund. Additionally, it was announced that ZK-SNARKs would be implemented so that users could verify their transactions against Binance's Merkle tree. ZK-SNARKs is a powerful technology that was proposed by Vitalik Buterin. It is compatible with the Merkel Tree Point of Sale system and can be used to demonstrate that all balances in the tree are non-negative and add up to some claimed value.


The move was made after the exchange published a report on November 10 in which it disclosed the balances of both its hot and cold wallets and promised to follow up with a Merkel tree Proof of Residency system to enable third-party auditors to verify the holdings. The cryptocurrency community, on the other hand, noticed that the exchange had moved $2.7 billion out of its proof-of-reserves wallet a few hours after the report was published, which led to the exchange coming under fire for its actions.

It was difficult for Binance CEO Changpeng Zhao, also known as "CZ," to provide a satisfactory explanation for the transfer, especially after he tweeted the following: "If an exchange needs to move large amounts of cryptocurrency before or after they demonstrate their wallet addresses, it is a clear sign of problems." Stay away."

In response to the allegations, the exchange stated that the transfer of assets occurred as a result of routine operations carried out between the exchange's own wallets.


Ojike Stella

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Comments
Francis Precious 44 w

Nice work

 
 
Dungor Miracle Isioma 1 y

Okay ✅