Binance, the world’s largest cryptocurrency exchange by trading volume, launched Proof of Reserves (PoR) for its Bitcoin (BTC) holdings on Friday in its latest show of transparency to reassure customers of its health after the sudden collapse of leading cryptocurrency exchange FTX.
A PoR is an independent, third-party audit that seeks to confirm that a digital asset custodian actually holds the assets it claims to have in store to secure client funds. The drop of once beloved FTX There is currently renewed interest in PoR in the cryptocurrency community.
As part of our ongoing commitment to transparency, we have provided further updates on #binanceEvidence of reservations.
Other updates for $ETH, $USDT, $USDC, #BUSD & #BNB will come in the near future.
Stay tuned.
— Binance (@binance) November 25, 2022
Merkle Tree Data
The new update comes two weeks after Binance published cold wallet addresses and the balances of six of the 600 coins traded on its platform. Details shared by the main exchange showed that it held approximately 475,000 BTC, 4.8 million ETH, 17.6 billion USDT, 21.7 billion BUSD, 601 million USDC and 58 million BNB.
In a statement shared with finance tycoons On Friday, Binance noted that it also allowed users to verify its BTC holdings with the Merkle Tree data structure. The exchange described PoR for BTC as “the first interaction of the feature,” adding that it will “soon” introduce verification for Ether, USDT, USDC, BUSD, and BNB.
A Merkle Tree is a cryptographic tool that allows the consolidation of large amounts of data into a single hash.
On #binanceyou can use Merkle’s Trees to verify your #Bitcoins is owned 1:1, and you can have it verified by a third-party auditing agency.
Here’s how it works ⤵️ pic.twitter.com/ZH1DN27jWO
— Binance (@binance) November 25, 2022
“Binance is also working on onboarding an independent third-party auditor to validate Merkle Tree data,” the exchange said, adding that it had designed a new PoR site to show that it holds all of the funds from the exchanges. customers, with reservations.
“So in simple terms, when a user deposits one bitcoin, Binance’s reserves increase by at least one bitcoin to ensure client funds are fully collateralized. People will be able to visit the site and see proof of reserves of Binance, showing Binance reserve ratio alongside client liabilities,” Binance Explain.
“Massive Enterprise”
In the statement, Changpeng Zhao, CEO and Founder of Binance, described the new project as “a massive undertaking”. He added that developing the data required for the majority of assets in the custody of the exchange takes a few weeks.
“Given recent events, it is understandable that the community is demanding more from crypto exchanges, far more than what is currently demanded from traditional financial institutions. That’s why we are happy to provide this latest feature for our users to check their funds,” Zhao explained.
The CEO assured that the company is working to release the next update as soon as possible to meet the expectations of the cryptocurrency community.
Binance, the world’s largest cryptocurrency exchange by trading volume, launched Proof of Reserves (PoR) for its Bitcoin (BTC) holdings on Friday in its latest show of transparency to reassure customers of its health after the sudden collapse of leading cryptocurrency exchange FTX.
A PoR is an independent, third-party audit that seeks to confirm that a digital asset custodian actually holds the assets it claims to have in store to secure client funds. The drop of once beloved FTX There is currently renewed interest in PoR in the cryptocurrency community.
As part of our ongoing commitment to transparency, we have provided further updates on #binanceEvidence of reservations.
Other updates for $ETH, $USDT, $USDC, #BUSD & #BNB will come in the near future.
Stay tuned.
— Binance (@binance) November 25, 2022
Merkle Tree Data
The new update comes two weeks after Binance published cold wallet addresses and the balances of six of the 600 coins traded on its platform. Details shared by the main exchange showed that it held approximately 475,000 BTC, 4.8 million ETH, 17.6 billion USDT, 21.7 billion BUSD, 601 million USDC and 58 million BNB.
In a statement shared with finance tycoons On Friday, Binance noted that it also allowed users to verify its BTC holdings with the Merkle Tree data structure. The exchange described PoR for BTC as “the first interaction of the feature,” adding that it will “soon” introduce verification for Ether, USDT, USDC, BUSD, and BNB.
A Merkle Tree is a cryptographic tool that allows the consolidation of large amounts of data into a single hash.
On #binanceyou can use Merkle’s Trees to verify your #Bitcoins is owned 1:1, and you can have it verified by a third-party auditing agency.
Here’s how it works ⤵️ pic.twitter.com/ZH1DN27jWO
— Binance (@binance) November 25, 2022
“Binance is also working on onboarding an independent third-party auditor to validate Merkle Tree data,” the exchange said, adding that it had designed a new PoR site to show that it holds all of the funds from the exchanges. customers, with reservations.
“So in simple terms, when a user deposits one bitcoin, Binance’s reserves increase by at least one bitcoin to ensure client funds are fully collateralized. People will be able to visit the site and see proof of reserves of Binance, showing Binance reserve ratio alongside client liabilities,” Binance Explain.
“Massive Enterprise”
In the statement, Changpeng Zhao, CEO and Founder of Binance, described the new project as “a massive undertaking”. He added that developing the data required for the majority of assets in the custody of the exchange takes a few weeks.
“Given recent events, it is understandable that the community is demanding more from crypto exchanges, far more than what is currently demanded from traditional financial institutions. That’s why we are happy to provide this latest feature for our users to check their funds,” Zhao explained.
The CEO assured that the company is working to release the next update as soon as possible to meet the expectations of the cryptocurrency community.