Just-In: Binance Unlocks New Feature For Bitcoin Holders

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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
Because Binance offers Margin and Loans services, the audit results will show the Net Balance, Equity and Debt of each user, where the Net Balance = Equity – Debt.
As such, there will be individual users having negative asset balances. We are hence also working to implement ZK-SNARKs, which will be used to prove those users have enough other assets to cover the funds with collateral. This will prove that the total net balances (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.

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