Top cryptocurrency exchange Binance, in a recent announcement, unveiled the Merkle tree Proof of Reserves (PoR) system. According to Binance, this feature will increase transparency for user’s funds.
Binance unveils Merkle tree Proof of Reserves
As per the recent tweet from WuBlockchain, the launch of this feature will start initially with BTC, then move to other tokens and networks being added in the next couple of weeks. In addition to this, Binance will also implement ZK-SNARKs for PoR later to improve privacy and robustness.
The top cryptocurrency exchange recently announced the Proof of Reserves (PoR) system, which will be the next step in ensuring user funds are transparent. Binance also announces its upcoming plan to introduce next batch of PoR including new assets. Apart from this Binance also plans to include third-party auditors in the verification of PoR
- Involve third-party auditors to audit PoR results
- Implement ZK-SNARKs for PoR, improving privacy and robustness, and proving the total net balance (USD) of each user is non-negative
Notably, following the FTX collapse, which resulted from the now-bankrupt cryptocurrency exchange moving user funds to mitigate its own risks, crypto exchanges developed a transparency solution known as “proof-of-reserves.” In the next two weeks, the next batch of PoR will be released, including new assets.
As a matter of fact, previously, Ethereum co-founder and CEO Vitalik Buterin also discussed the use of the ZK-SNark feature to upgrade Ethereum’s scalability.
The post Just-In: Binance Unlocks New Feature For Bitcoin Holders appeared first on CoinGape.
This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.
#Bitcoin #Crypto #Cryptocurrency