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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.)

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.

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