Binance Releases its Proof of Reserves — But is it Enough?
Binance released its highly anticipated proof of reserves (PoR) on Friday, providing blockchain-based evidence for the Bitcoin on its books. However, many in the crypto community question Binance’s approach. Also, they aren’t fully sure they have the transparency they’re looking for. The Move to Proof of Reserves As Binance explained in its announcement , the exchange’s transparency system will add multiple tokens and networks within the next two weeks. For now, it solely validates its Bitcoin holdings. The company’s initial audit proved that it owns 582,486 BTC in its on-chain reserve, while its customers hold a 575,742 BTC net balance. This makes for a 101% collateral ratio. KYC & Audit Solutions! SolidProof Users can verify that their personal balance is held with Binance by checking on their relevant Merkle leaf and record ID on Binance’s website. A Merkle leaf is a transaction within a merkle tree, a structure used to efficiently store data inside a blo...