• Binance has expanded its Proof-of-Reserve (PoR) report to include 11 more tokens, bringing the overall amount of funds verifiable via the exchange’s PoR system to over $63 billion.
• After the collapse of FTX and related concerns about centralized players, Binance was one of the first platforms to share its PoR report with a 101% collateralization ratio.
• Binance further incorporated zk-SNARKs into its proof-of-reserves verification earlier this year, affirming that funds held on the platform are backed 1:1 while preserving the privacy of sensitive user data.
Binance Expands Proof of Reserves Report
Binance has expanded its Proof-of-Reserve (PoR) report to include 11 more tokens, bringing the overall amount of funds verifiable via the exchange’s PoR system to over $63 billion. The report now allows users to verify the amount of funds on the exchange across 24 different cryptocurrencies.
Collapse of FTX Stirred up Concerns
The unprecedented collapse of FTX, once the third-largest cryptocurrency exchange, stirred up a lot of concerns within the crypto industry over the reliability of centralized players. In a bid to address this skepticism, crypto executives started to share proof of reserves.
Binance’s Initial Audit Report
Binance was among the very first platforms to share its Proof of Reserves report. Initially, they shared a list of how many tokens it has but noted that it was „not a complete set“ and that further details would be shared in an upcoming full audit report. Later in December, Binance shared its PoR report audited by Mazars which claimed that their bitcoin reserves have a 101% collateralization ratio.
Jesse Powell Finds Holes in Audit
However some crypto experts were quick to find some holes in this audit; Kraken cofounder Jesse Powell noted that these figures essentially state Binance’s bitcoin is 97% collateralized. This led to a surge in withdrawals as rumors about alleged problems at the platform drove users away.
zk-SNARKS Added for Privacy Protection
In order address this skepticism, Binance incorporated zk-SNARKs into their proof-of-reserves verification earlier this year, affirming that funds held on their platform are backed 1:1 while preserving privacy for sensitive user data. Other exchanges such as Kraken, Crypto.com Bitmex Coinfloor etc have also completed their own audits and verifications systems for customers’ protection and assurance