🚨 Get Your Free NFT Certificate Mint by Completing the Web3 Exam! START NOW
My Learnlist: Coming Soon!
My Learnlist: Coming Soon!

Learn by real-life examples: Select, Track & Understand any cryptos with the unique Learnlist feature!

Notify Me!
Portfolio: Coming Soon!
Portfolio: Coming Soon!

Set your wallet & get powerful insights backed by data. Easily learn how to use it for your highest rewards!

Notify Me!

Crypto Exchange Binance Rolls Out its Proof of Reserves System

Crypto Exchange Binance Rolls Out its Proof of Reserves System

Binance PoR system reveals that the company's Bitcoin (BTC) reserves ratio is 101%.

Binance, the largest crypto exchange in terms of daily trading volumes, has released its Proof of Reserves System (PoR).

According to the blog post shared on November 25th, upon the launch of the PoR system, Binance will provide information about its Bitcoin (BTC) reserves.

What is Ethereum & What is it Used For? (Animated Explanation)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

What is Ethereum & What is it Used For? (Animated Explanation)

What is Ethereum & What is it Used For? (Animated Explanation) What is Ethereum & What is it Used For? (Animated Explanation)

In the blog post, Binance highlighted that it will add support to other tokens and networks in “the next couple of weeks.”

When we say Proof of Reserves, we are specifically referring to those assets that we hold in custody for users. This means that we are showing evidence and proof that Binance has funds that cover all of our users assets 1:1, as well as some reserves.

Binance’s BTC audit from November 22nd revealed that the company has 582,485.9302 BTC in its reserves, with its users having a net balance of 575,742.4228 BTC. According to the company, this makes its reserve ratio 101%.

Crypto exchange emphasized that it aims to “involve third-party auditors to audit PoR results” and implement zero-knowledge proof technology (ZK-SNARKs) to improve “privacy and robustness” and provide “the total net balance (USD) of each user is non-negative.”

It is worth noting that Binance’s CEO, Changpeng Zhao, first started talking about releasing “Merkle-Tree Proof-of-Reserves” on November 8th.

Following the announcement about the released Proof of Reserves System, the crypto community was quick to comment on the news. One Twitter user, dubbed satn, praised the initiative, offering new ideas for improvements.

This is a great initiative. Perhaps a stand-alone page for Proof of Reserves where users can see all the exchange holdings (updated daily) could be on the roadmap for the future.

However, not everyone was happy with Binance’s PoR system. Crypto exchange Kraken co-founder and CEO Jesse Powell used Twitter to claim that Binance’s PoR system is pointless if it doesn’t provide liabilities.

It is worth noting that other major crypto exchanges like Crypto.com, Bitfinex, KuCoin, and OKX have also shared their Proof of Reserves.

Gile K., Market Sentiment Analyst
Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she's not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.



Earn Huge Exclusive Binance Learners Rewards