{"id":14756,"date":"2022-11-23T21:45:48","date_gmt":"2022-11-23T21:45:48","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/krakens-jesse-powell-takes-aim-at-newly-launched-proof-of-reserve-lists-por-audit-requires-cryptographic-proof-bitcoin-news\/"},"modified":"2022-11-23T21:45:48","modified_gmt":"2022-11-23T21:45:48","slug":"krakens-jesse-powell-takes-aim-at-newly-launched-proof-of-reserve-lists-por-audit-requires-cryptographic-proof-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/krakens-jesse-powell-takes-aim-at-newly-launched-proof-of-reserve-lists-por-audit-requires-cryptographic-proof-bitcoin-news\/","title":{"rendered":"Kraken’s Jesse Powell Takes Aim at Newly Launched Proof-of-Reserve Lists, POR Audit ‘Requires Cryptographic Proof’ \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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On Tuesday, amid the many conversations concerning crypto exchange proof-of-reserves, Kraken executive Jesse Powell shared a screenshot of coinmarketcap.com\u2019s newly launched proof-of-reserves (POR) dashboard. Powell said he planned to be \u201cmore assertive with calling out problems,\u201d and he stressed that a POR audit \u201crequires cryptographic proof of client balances and wallet control.\u201d<\/strong><\/p>\n

Jesse Powell Stresses a \u2018Proof of Reserves Audit Requires Cryptographic Proof of Client Balances and Wallet Control\u2019<\/h2>\n

Kraken\u2019s Jesse Powell has had a lot to say about the recent FTX collapse, as the exchange executive recently said<\/a> the trading platform\u2019s fallout was \u201ca massive setback.\u201d Powell has also been talking about the subject of proof-of-reserves (POR) in recent times as Kraken has been a member of Nic Carter\u2019s proof-of-reserves list or \u201cWall of Fame\u201d<\/a> for quite some time. Kraken is noted to have \u201cFull POR<\/a>\u201d and its described as \u201cauditor-assisted, user validation with Merkle approach, point in time.\u201d<\/p>\n

Just recently, the crypto coin price aggregation website coinmarketcap.com (CMC) announced<\/a> the launch of a proof-of-reserves dashboard, and Binance CEO Changpeng Zhao (CZ) tweeted<\/a> about the CMC POR dashboard. \u201c@Coinmarketcap released a new exchange reserve dashboard feature,\u201d CZ said on Nov. 22. The same day, Kraken executive Jesse Powell tweeted about the new CMC feature.<\/p>\n

\u201cI said I was going to be more assertive with calling out problems. This is one of them,\u201d Powell said<\/a>. \u201c\u2018Reserves\u2019 = assets minus liabilities. \u2018Reserves\u2019 != list of wallets,\u201d the Kraken executive explained. Powell added<\/a>:<\/p>\n

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The Proof of Reserves AUDIT requires cryptographic proof of client balances and wallet control. #Proofofreserves audit must have: 1. sum of client liabilities (auditor must exclude negative balances). 2. user-verifiable cryptographic proof that each account was included in the sum. 3. signatures proving that the custodian has control of the wallets.<\/p>\n<\/blockquote>\n

Paper Shows Full POR Is Easily Achievable, But Will Crypto Exchange Bosses Keep Their Merkle-Proof Audit Promises?<\/h2>\n

The POR topic comes at a time when the crypto community is on edge and exchanges have promised to share POR audits with Merkle proof. A handful<\/a> of exchanges have shared lists<\/a> of addresses and the analytics firm Nansen has published a dashboard of exchange wallets<\/a> as well. When Powell shared his sentiment on Twitter, he also shared an archive.org link to a paper called \u201cProving Your Bitcoin Reserves<\/a>.\u201d<\/p>\n

The paper discusses how flat listings of accounts\/balances can be achieved, The Merkle approach<\/a> to proving liabilities, and \u201cProving assets<\/a>.\u201d \u201cProving control of assets\u201d is the \u201cintuitive and straightforward solution is to sign a statement of ownership with all relevant private keys,\u201d the paper explains.<\/p>\n

While the paper and Jesse Powell explain that full POR is easily achievable via The Merkle approach and proving ownership of private keys, a number of exchange bosses have promised to not only share cold and hot wallet addresses, but also Merkle approach-based audits as well. The only thing left is the crypto community remembering such promises and holding the exchange CEOs to them.<\/p>\n

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Binance<\/a>, bitcoin reserves<\/a>, CMC<\/a>, Coinmarketcap.com<\/a>, cold wallets<\/a>, cryptographic signatures<\/a>, dashboard<\/a>, dashboard of exchange wallets<\/a>, FTX collapse<\/a>, FTX fallout<\/a>, hot wallets<\/a>, Jesse Powell<\/a>, Kraken<\/a>, Kraken CEO<\/a>, Kraken Executive<\/a>, Merkle proof<\/a>, nic carter<\/a>, PoR<\/a>, POR concept<\/a>, Proving control of assets<\/a>, Proving Your Bitcoin Reserves<\/a>, Signatures<\/a>, The Merkle approach<\/a>, Twitter discussion<\/a>, Wallets<\/a><\/div>\n<\/div>\n

What do you think about Kraken\u2019s Jesse Powell getting more assertive about things like proof-of-reserves? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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