Global crypto exchange giant Binance announced official proof of reserves (PoR) system to increase transparency following the FTX implosion.The company is starting with BTC reserves. Right now, Binance has a reserve ratio of 101%. It means that the company has enough Bitcoins to cover all users' balances. Binance also plans to launch the next batch of PoR in the next two weeks, including additional assets.
Read full announcement from Binance:
Following our recent announcement outlining our commitment to transparency, Binance is releasing its Proof of Reserves (PoR) System, which is the next step in our effort to provide transparency on user funds.The launch of this feature will start initially with BTC, with other tokens and networks being added in the next couple of weeks.
Please find the first batch of audit results below:
Snapshot Time: 2022-11-22 at 23:59 (UTC)
Block Heights: BTC 764,327, ETH 16,028,978, BEP2 280,017,714, BEP20 23,288,794
- Launch the next batch of PoR in the next two weeks, including additional assets
- Involve third-party auditors to audit PoR results
- Implement ZK-SNARKs for PoR, improving privacy and robustness, and proving the total net balance (USD) of each user is non-negative
Because Binance offers Margin and Loans services, the audit results will show the Net Balance, Equity and Debt of each user, where the Net Balance = Equity - Debt.As such, there will be individual users having negative asset balances. We are hence also working to implement ZK-SNARKs, which will be used to prove those users have enough other assets to cover the funds with collateral. This will prove that the total net balances (USD) of each user is non-negative.Thanks for your support!Binance Team2022-11-25