Binance Introduces Proof-Of-Reserves System For Bitcoin
Binance confirmed that its own money is not included in the BTC wallets used in the proof-of-reserves system.
San Francisco: Binance, the world's largest crypto exchange by trading volume, has launched a new website to explain its proof-of-reserves system, and is starting with Bitcoin (BTC) reserves. The company currently has a 101 per cent reserve ratio. This indicates that it has enough BTCs available to cover every user's balance, reports TechCrunch.
With the new proof-of-reserves website, the Changpeng Zhao-led crypto exchange company confirmed that its own money is not included in the BTC wallets used in the proof-of-reserves system.
"It is important to note that this does not include Binance's corporate holdings, which are kept on a completely separate ledger," the company was quoted as saying in the report.
Regarding user assets, the business creates a cryptographic seal using a Merkle tree that contains all individual user accounts.
A few weeks ago, the crypto exchange company began by sharing wallet addresses for cryptocurrency assets worth billions of dollars.
The company demonstrated with this action that it does own a lot of assets and is capable of processing a ton of withdrawals, the report said.
However, Binance didn't make it clear whether those assets are of users, or of its own balance sheet, or a combination of both.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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