Following a promise by Binance CEO CZ, the exchange has released evidence of Bitcoin reserves held on the platform. Client funds are backed by an on-chain reserve of over 582,000 BTC. This is 1% higher than the customer’s total deposit.
The customer’s net balance was 575,742.4228 BTC at the time of the snapshot taken on November 11th, and his on-chain reserves amounted to exactly 582,485.9302 BTC.
According to the announcement, the evidence currently focuses exclusively on BTC, with “other tokens and networks to be added in the coming weeks.”
Binance customers can verify that the on-chain funds are backing their BTC assets by logging in and following them. Link in the announcement. Alternatively, a user can click Wallet and then Audit to view Merkle Leaf and Record IDs associated with account balances.
The additional features are part of an overall initiative by Binance to “provide transparency in user funds.”
While no date has been given for releasing proofs of reserves for other tokens, Binance has outlined its next goals.
“We will launch the next batch of PoRs in the next two weeks, including additional assets.
Involve a third party auditor to audit the results of the PoR.
embed ZK-SNARK Improve the privacy and robustness of PoR and prove that each user’s total net balance (USD) is non-negative. “
By using ZK-SNARK, Binance will better report on users who use its margin and loan services and “ensure that those users have sufficient other assets to collateralize their funds.” can prove.
Binance has confirmed that audited reviews indicate that some users have negative balances.
The goal of our next implementation of reserve proof is to “prove that each user’s total net balance (USD) is non-negative.”
The margin system used by Binance is markle tree This is “a cryptographic tool that allows you to consolidate large amounts of data into a single hash.”
“We use these properties of the Merkle Tree during margin evaluation to ensure that individual user accounts are included in liability reports examined by our auditors.”