Blockchain

Binance Introduces Proof-Of-Reserves System, Starting With Bitcoin

In order to demonstrate that the exchange is stable and financially sound, Binance has made its proof-of-reserves method available, beginning with bitcoin.

Binance Introduces Proof-Of-Reserves System, Starting With Bitcoin 2

This occurs only a few weeks after a competing exchange, FTX, shut down, allegedly exchanging user cash for other, less liquid tokens, causing a liquidity crisis in the process. The objective of Binance is to demonstrate that it holds the assets of its users in the same tokens that they have placed.

Binance has given a snapshot of account balances and the exchange’s bitcoin reserves for the cryptocurrency bitcoin. It asserts to have 582,485 bitcoin in reserves, yet its users’ net balance is just 575,742 bitcoin, leaving it with a 6,743 bitcoin profit. Users of Binance could also access a link to check the status of their own bitcoin on the exchange.

In the next weeks, according to Binance, more coins and blockchains will be added. Additionally, it plans to employ zero-knowledge proof technology to give cryptographic evidence of its claims while preserving user privacy, as well as third-party auditors to evaluate the proof-of-reserves mechanism.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

Coincu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.