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Binance Releases Proof-of-Reserves (PoR) System for Holdings of Bitcoin

source-logo  cryptoknowmics.com 26 November 2022 03:41, UTC

Binance released its official statement two weeks after first pledging to create a proof-of-reserves (PoR) system as a consequence of the FTX liquidity and insolvency disaster.

Binance Launches of Proof-of-Reserves System For Bitcoin Holdings

The exchange explained how users could utilize the system to check its holdings in a statement on the Binance website. The Merkle Tree-based system can now only validate Bitcoin, while the statement states that other coins will be added in the upcoming weeks. Changpeng "CZ" Zhao, CEO of Binance, tweeted about the most recent development. Inevitably, Twittersphere gave its opinion, and many of its members praised the initiatives to increase openness. https://twitter.com/satn/status/1596129312578883585?ref_src=twsrc%5Etfw

Additional Plans of Binance

Additionally, it emphasized planned transparency enhancements, such as the addition of ZK-SNARKs to its PoR techniques and the employment of outside auditors to check the accuracy of its PoR findings. Binance made the specifics of its wallet addresses and on-chain operations public a few days after revealing its plans for PoR. One of the initial companies to release proof of funds after the FTX was Binance. On November 16, a week following the first occurrence, Bitfinex, OKX, KuCoin, and Crypto.com disclosed their reserve wallet addresses along with Bybit.