Kraken’s Jesse Powell Takes Aim at Newly Launched Proof-of-Reserve Lists, POR Audit ‘Requires Cryptographic Proof’ – Bitcoin News

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On Tuesday, amid the many conversations about cryptocurrency exchange proof-of-reserves, Kraken executive Jesse Powell shared a screenshot of coinmarketcap.com’s newly launched proof-of-reserves (POR) dashboard. Powell said he planned to be “more assertive about calling out problems,” and he emphasized that a POR audit “requires cryptographic proof of customer balances and wallet verification.”

Jesse Powell Highlights ‘Proof of Reserves Audit Requires Cryptographic Proof of Customer Insights and Wallet Control’

Kraken’s Jesse Powell had a lot to say about FTX’s recent collapse, as the exchange’s executive recently said the trading platform’s downfall was a “huge setback.” Powell has also talked about the issue of proof-of-reserves (POR) in recent times as Kraken was a member of Nic Carter’s proof-of-reserves list or “Wall of Fame” for quite some time. Kraken is known to have “Full FOR” and it is described as “supervisor-assisted, user validation with a Merkle approach, point in time.”

Recently, the cryptocurrency price aggregation site coinmarketcap.com (CMC) announced the launch of a proof-of-reserve panel, and Binance CEO Changpeng Zhao (CZ) tweeted about the CMC POR panel. “@Coinmarketcap has released a new exchange reserve dashboard feature,” CZ said on November 22. The same day, Kraken executive Jesse Powell tweeted about the new CMC feature.

“I said I would be more assertive with calling out problems. This is one of them, “Powell said. “’Reserves’ = assets minus liabilities. ‘Reserves’ != a list of wallets,” the Kraken executive explained. Powell added:

The Proof of Reserves AUDIT requires cryptographic proof of customer balances and wallet verification. #Proofofreserves audit must have: 1. sum of customer liabilities (auditor must exclude negative balances). 2. user-verifiable cryptographic proof that each account was included in the total. 3. signatures proving that the guard has control of the wallets.

Paper Shows Full POR Is Easily Achievable, But Will Crypto Exchange Bosses Keep Their Merkel-Proof Audit Promises?

The POR issue comes at a time when the crypto community is on edge and exchanges have promised to share POR hearings with Merkle proof. A handful of exchanges have shared lists of addresses and analytics firm Nansen has also published a dashboard of exchange wallets. When Powell shared his sentiment on Twitter, he also shared an archive.org link to an article called “Proving Your Bitcoin Reserves.”

The paper discusses how flat lists of accounts/balances can be achieved, The Merkle approach to prove liabilities, and “Proving assets.” “Proving control of assets” is the “intuitive and simple solution is to sign a declaration of ownership with all relevant private keys,” the paper explains.

While the paper and Jesse Powell explain that a full POR is easily achievable with The Merkle access and proving ownership of private keys, some exchange heads have promised not only to share cold and hot wallet addresses, but also Merkle-based audits. . The only thing that remains is that the crypto community remembers such promises and holds the exchange CEOs to them.

Tags in this story

Binance, bitcoin reserves, CMC, Coinmarketcap.com, cold wallets, crypto signatures, dashboard, exchange wallets dashboard, FTX collapse, FTX crash, hot wallets, Jesse Powell, Kraken, Kraken CEO, Kraken Executive, Merkle proof , nic carter, PoR, POR concept, Prove control of assets, Prove Your Bitcoin Reserves, Signatures, The Merkle approach, Twitter discussion, Wallets

What do you think of Kraken’s Jesse Powell becoming more adamant about things like proof-of-reserves? Let us know what you think about this topic in the comments section below.

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Jamie Redman

Jamie Redman is the News Leader at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about the disruptive protocols coming out today.




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