In an effort to enhance transparency and bolster the trust of its customers, FTX Japan has unveiled a blockchain-based technology known as Proof of Solvency (PoS). This initiative was announced by Seth Melamed, the COO of FTX Japan, through a series of tweets on September 28, 2023. The newly introduced Proof of Solvency mechanism enables the company to prove, in an unalterable manner, that the reserves of the exchange surpass the assets held in custody for customers.
Proof of Solvency (PoS) is a method utilized to demonstrate a company’s capability to meet its long-term financial obligations, merging traditional financial audit practices with blockchain transparency. Highlighted by ICONOMI’s blockchain audit conducted by Deloitte on April 5, 2018, PoS comprises two core components: Proof of Liabilities and Proof of Reserves. Through the Merkle Tree approach, individual users can verify their account balances and overall liabilities…
