Binance, the world’s largest cryptocurrency exchange by trading volume, on Friday launched the Proof of Reserves (PoR) for its Bitcoin (BTC) holdings in its latest display of transparency to reassure customers about its health following the sudden collapse of the top crypto exchange FTX.
PoR is an independent audit performed by a third party that aims to confirm that a custodian of digital assets really holds the assets it claims to have in reserves to secure clients’ funds. The fall of the once beloved FTX is currently driving a renewed interest in PoR in the cryptocurrency community.
As part of our ongoing commitment to transparency, we have provided new updates on #Binance‘s Proof of Reserves.
More updates for $ETH, $USDT, $USDC, #BUSD & #BNB will come in the near future.
Stay tuned.
– Binance (@binance) November 25, 2022
Merkle Tree Data
The new update comes two weeks after Binance released the cold wallet addresses and balances of six of the 600 coins traded on its platform. Details shared by the top exchange showed that it has about 475,000 BTC, 4.8 million ETH, 17.6 billion USDT, 21.7 billion BUSD, 601 million USDC and 58 million BNB.
In a statement shared with Financial Tycoons on Friday, Binance noted that it has also enabled users to verify their BTC holdings with the Merkle Tree data structure. The exchange described the PoR for BTC as “the first interaction of the feature”, adding that it will introduce verification for Ether, USDT, USDC, BUSD and BNB “soon”.
A Merkle Tree is a cryptographic tool that allows consolidation of large amounts of data into a single hash.
On #Binanceyou can use Merkle’s Trees to check yours #Bitcoin is held 1:1, and you can have it verified by a third-party auditing agency.
Here’s how it works ⤵️ pic.twitter.com/ZH1DN27jWO
– Binance (@binance) November 25, 2022
“Binance is also working to onboard an independent third-party auditor to validate the Merkle Tree data,” the exchange said, adding that it designed a new PoR website to show it fully holds client funds, with reservations.
“So, in simple terms, when a user deposits one Bitcoin, Binance’s reserves increase by at least one Bitcoin to ensure that client funds are fully supported. People will be able to check the website and see Binance’s Proof of Reserves, showing Binance’s reserve ratio along with customer liabilities,” Binance explained.
“Massive Enterprise”
In the statement, Changpeng Zhao, CEO and Founder of Binance described the new project as a “big undertaking”. He added that developing the data required for the majority of assets under the custody of the exchange requires several weeks.
“Given recent events, it is understandable that the community will demand more from crypto exchanges, much more than what is currently demanded from traditional financial institutions. That is why we are happy to provide this latest feature for our users to control their finances,” Zhao explained. .
The CEO assured that the company is working to release the next update as quickly as possible to meet the expectations of the cryptocurrency community.
Binance, the world’s largest cryptocurrency exchange by trading volume, on Friday launched the Proof of Reserves (PoR) for its Bitcoin (BTC) holdings in its latest display of transparency to reassure customers about its health following the sudden collapse of the top crypto exchange FTX.
PoR is an independent audit performed by a third party that aims to confirm that a custodian of digital assets really holds the assets it claims to have in reserves to secure clients’ funds. The fall of the once beloved FTX is currently driving a renewed interest in PoR in the cryptocurrency community.
As part of our ongoing commitment to transparency, we have provided new updates on #Binance‘s Proof of Reserves.
More updates for $ETH, $USDT, $USDC, #BUSD & #BNB will come in the near future.
Stay tuned.
– Binance (@binance) November 25, 2022
Merkle Tree Data
The new update comes two weeks after Binance released the cold wallet addresses and balances of six of the 600 coins traded on its platform. Details shared by the top exchange showed that it has about 475,000 BTC, 4.8 million ETH, 17.6 billion USDT, 21.7 billion BUSD, 601 million USDC and 58 million BNB.
In a statement shared with Financial Tycoons on Friday, Binance noted that it has also enabled users to verify their BTC holdings with the Merkle Tree data structure. The exchange described the PoR for BTC as “the first interaction of the feature”, adding that it will introduce verification for Ether, USDT, USDC, BUSD and BNB “soon”.
A Merkle Tree is a cryptographic tool that allows consolidation of large amounts of data into a single hash.
On #Binanceyou can use Merkle’s Trees to check yours #Bitcoin is held 1:1, and you can have it verified by a third-party auditing agency.
Here’s how it works ⤵️ pic.twitter.com/ZH1DN27jWO
– Binance (@binance) November 25, 2022
“Binance is also working to onboard an independent third-party auditor to validate the Merkle Tree data,” the exchange said, adding that it designed a new PoR website to show it fully holds client funds, with reservations.
“So, in simple terms, when a user deposits one Bitcoin, Binance’s reserves increase by at least one Bitcoin to ensure that client funds are fully supported. People will be able to check the website and see Binance’s Proof of Reserves, showing Binance’s reserve ratio along with customer liabilities,” Binance explained.
“Massive Enterprise”
In the statement, Changpeng Zhao, CEO and Founder of Binance described the new project as a “big undertaking”. He added that developing the data required for the majority of assets under the custody of the exchange requires several weeks.
“Given recent events, it is understandable that the community will demand more from crypto exchanges, much more than what is currently demanded from traditional financial institutions. That is why we are happy to provide this latest feature for our users to control their finances,” Zhao explained. .
The CEO assured that the company is working to release the next update as quickly as possible to meet the expectations of the cryptocurrency community.
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