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- Binance plans to begin rolling out this capability with Bitcoin (BTC) before expanding.
- The leading exchange is also working on implementing ZK-SNARKs for PoR.
The Merkle tree Proof of Reserves (PoR) protocol was just announced by Binance, the largest crypto exchange. To better show users where their money is going, Binance says this new function is a must-have.
According to a recent tweet from WuBlockchain. The exchange plans to begin rolling out this capability with Bitcoin (BTC). Before expanding to support more currencies and networks over the course of the following several weeks. Binance plans to introduce ZK-SNARKs for PoR in the future to boost privacy and security.
The Proof of Reserves (PoR) mechanism, launched by the leading cryptocurrency exchange recently, will be the next step in assuring the openness of user money. Binance also reveals its intention to release a new set of PoR assets in the near future. As a further step, Binance intends to have independent auditors check the legitimacy of Proof of Reserves.
Implementing ZK-SNARKs
The leading exchange is also working on implementing ZK-SNARKs for PoR, which will improve privacy and resilience while proving that no user has a negative net USD balance. The services of Margin Trading and Lending will also be made available to Binance customers.
Particularly, crypto exchanges devised a transparency solution known as “proof-of-reserves” after the FTX collapsed because of the now-defunct cryptocurrency exchange’s decision to move user assets to offset its own risks.
In fact, Vitalik Buterin, co-founder and CEO of Ethereum, has already mentioned enhancing Ethereum’s scalability using the ZK-SNark functionality.
The Ethereum CEO noted in his recent talk that ZK-SNARK does more than only make shielded transactions faster and less memory intensive. He also said that the fact that Ethereum’s sophisticated on-chain abstractions are being examined promises well for the future of the platform.
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