Binance Introduces Proof-Of-Reserves System For Bitcoin

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San Fran­cis­co: Binance, the world’s largest cryp­to exchange by trad­ing vol­ume, has launched a new web­site to explain its proof-of-reserves sys­tem, and is start­ing with Bit­coin (BTC) reserves. The com­pa­ny cur­rent­ly has a 101 per cent reserve ratio. This indi­cates that it has enough BTCs avail­able to cov­er every user’s bal­ance, reports TechCrunch.

With the new proof-of-reserves web­site, the Chang­peng Zhao-led cryp­to exchange com­pa­ny con­firmed that its own mon­ey is not includ­ed in the BTC wal­lets used in the proof-of-reserves system.

“It is impor­tant to note that this does not include Binance’s cor­po­rate hold­ings, which are kept on a com­plete­ly sep­a­rate ledger,” the com­pa­ny was quot­ed as say­ing in the report.

Regard­ing user assets, the busi­ness cre­ates a cryp­to­graph­ic seal using a Merkle tree that con­tains all indi­vid­ual user accounts.

A few weeks ago, the cryp­to exchange com­pa­ny began by shar­ing wal­let address­es for cryp­tocur­ren­cy assets worth bil­lions of dollars.

The com­pa­ny demon­strat­ed with this action that it does own a lot of assets and is capa­ble of pro­cess­ing a ton of with­drawals, the report said.

How­ev­er, Binance did­n’t make it clear whether those assets are of users, or of its own bal­ance sheet, or a com­bi­na­tion of both.

(This report has been pub­lished as part of the auto-gen­er­at­ed syn­di­cate wire feed. Apart from the head­line, no edit­ing has been done in the copy by ABP Live.)

Dis­claimer: Cryp­to prod­ucts and NFTs are unreg­u­lat­ed and can be high­ly risky. There may be no reg­u­la­to­ry recourse for any loss from such trans­ac­tions. Cryp­tocur­ren­cy is not a legal ten­der and is sub­ject to mar­ket risks. Read­ers are advised to seek expert advice and read offer document(s) along with relat­ed impor­tant lit­er­a­ture on the sub­ject care­ful­ly before mak­ing any kind of invest­ment what­so­ev­er. Cryp­tocur­ren­cy mar­ket pre­dic­tions are spec­u­la­tive and any invest­ment made shall be at the sole cost and risk of the readers.

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