Binance has released its Merkle tree proof of reserve system, enabling its users to verify their holdings with the exchange.
In the wake of the collapse of cryptocurrency exchange FTX, it was revealed that the company had lent out a significant portion of its customers’ assets. Consequently, major exchanges rushed to reassure markets and their users that they still retained customers’ assets.
Binance was among the first major exchanges to do so, and was swiftly followed by several more. However, these first proof of reserves were merely the balances of the exchanges’ cold wallets. Binance CEO Changpeng Zhao said his company would soon provide cryptographic evidence of these reserves that users could check themselves.
Merkle Trees and ZK-SNARKs
Binance is now providing this cryptographic evidence with the release of its Merkle tree Proof of Reserves (PoR) System. The company announced this would initially start with its
