Key Points:
- To enable users to confirm funds kept on the platform, Binance is integrating zk-SNARKs into its proof-of-reserves (PoR) mechanism.
- Merkle Trees were used exclusively in the PoR system that Binance had launched, which was deemed less than desirable for user privacy.
The largest centralized cryptocurrency exchange by volume, Binance, has added zk-SNARKs, a kind of zero-knowledge proof, to its proof-of-reserves verification process. This serves as proof that the platform’s holdings are backed 1:1 while safeguarding the privacy of sensitive user information.
Currently, 13 different crypto assets can be used to check the exchange’s reserves using this improved PoR system.
In addition to the upgrade, four new tokens have been added to the system: SHIB, DOT, CHZ and SOL, bringing the total number of verifiable assets to 13 popular tokens on Binance.
In response to growing investor worries about the security of their money on cryptocurrency exchanges, the exchange added this feature. Merkle Tree is a data structure used in cryptography that can be used for verification, and Binance has previously developed a PoR method that was completely based on it.
The Merkle Tree-based solution wasn’t good enough for user privacy, so the Binance team added support for zero-knowledge proofs.
Continuing the efforts in providing transparency on user funds, Binance is excited to introduce zk-SNARKs, a zero-knowledge verification method that keeps sensitive information private and more secure, to its Proof of Reserves (PoR) Verification System.
A cryptographic tool called Zk-SNARK can be used to prove or verify certain information without really revealing what it is.
Additionally, the exchange has chosen to make the zk-SNARK software open-source so that anybody may examine the code. The development team contends that by making it open-source, it can increase platform confidence.
Besides, it plans to add more tokens to the PoR system in the weeks ahead and will continue to make the verification function more reliable, secure, and private.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
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