{"id":14812,"date":"2022-11-25T16:20:29","date_gmt":"2022-11-25T16:20:29","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binance-unveils-its-proof-of-reserves-mechanism\/"},"modified":"2022-11-25T16:20:29","modified_gmt":"2022-11-25T16:20:29","slug":"binance-unveils-its-proof-of-reserves-mechanism","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binance-unveils-its-proof-of-reserves-mechanism\/","title":{"rendered":"Binance unveils its proof of reserves mechanism"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1669391097419-8cc77296-7265-401c-9f02-c8a3c0a90271-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1669391097419-8cc77296-7265-401c-9f02-c8a3c0a90271-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1669391097419-8cc77296-7265-401c-9f02-c8a3c0a90271-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1669391097419-8cc77296-7265-401c-9f02-c8a3c0a90271-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/><\/picture><\/div>\n<ul>\n<li dir=\"ltr\"><em><strong>Binance\u2019s proof of reserves system initially shows results for the flagship cryptocurrency Bitcoin.<\/strong><\/em><\/li>\n<li dir=\"ltr\"><em><strong>The crypto exchange will add other tokens and networks as well as implement ZK-SNARKs.<\/strong><\/em><\/li>\n<li dir=\"ltr\"><strong><em>Crypto exchanges are looking to show they have the assets they should hold after the shocking collapse of FTX.<\/em><\/strong><\/li>\n<\/ul>\n<p dir=\"ltr\"><a href=\"https:\/\/coinjournal.net\/exchanges\/binance\/\">Binance<\/a> has published its proof-of-reserve (PoR) system, days after CEO Changpeng Zhao pledged to have the mechanism in place following the collapse of rival FTX.<\/p>\n<p dir=\"ltr\">The bankruptcy and the contagion that followed crashed the market, with <a href=\"https:\/\/coinjournal.net\/binance-coin\/price\/\">Binance Coin price<\/a> dropping to lows of $250.<a href=\"https:\/\/coinjournal.net\/bitcoin\/price\/\">\u00a0Bitcoin price<\/a> also fell below $16,000, hitting its lowest level since 2020.<\/p>\n<p dir=\"ltr\">In response, <a href=\"https:\/\/coinjournal.net\/exchanges\/\">multiple exchanges<\/a> had released a snapshot of their asset reserves. But the crypto community largely noted the snapshot of assets alone wasn\u2019t enough \u2013 there was a need to have exchanges\u2019 liabilities also available.<\/p>\n<h2 dir=\"ltr\">Binance\u2019s proof of reserves showed a 101% ratio<\/h2>\n<p dir=\"ltr\">In its <a href=\"https:\/\/www.binance.com\/en\/support\/announcement\/binance-releases-proof-of-reserves-system-0c7a786cbe8c4e108f3301385ab61e39\" rel=\"noopener noreferrer\" target=\"_blank\">update on the issue<\/a>, Binance has noted its users are now able to verify the exchanges holdings. As for what\u2019s possible now, Binance announced the mechanism will initially support Bitcoin. The exchange will look to add other tokens and networks over the next few weeks.<\/p>\n<p dir=\"ltr\">Binance will also allow for the auditing of its proof of reserves results by third-party auditors and implement ZK-SNARKs to help bolster privacy and robustness.<\/p>\n<p dir=\"ltr\">\u201c<em>Because Binance offers Margin and Loans services, the audit results will show the Net Balance, Equity and Debt of each user, where the Net Balance = Equity \u2013 Debt<\/em>,\u201d the Binance team wrote.<\/p>\n<p dir=\"ltr\">A snapshot taken on 22 November 2022 at 23:59 (UTC) shows Binance\u2019s on-chain Bitcoin balances stood at 582,485.9302, while customer net balance was 575,742.4228. The reserve ratio from the snapshot was 101%, with the margin at 6,743 BTC.<\/p>\n<p dir=\"ltr\">Binance customers can verify whether the exchange holds their crypto as it should.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/binance-releases-its-proof-of-reserves-system\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) Binance\u2019s proof of reserves system initially shows results for the flagship cryptocurrency Bitcoin. The crypto exchange will add other tokens and networks as well as implement ZK-SNARKs. Crypto exchanges are looking to show they have the assets they should hold after the shocking [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":14813,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/14812"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=14812"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/14812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/14813"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=14812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=14812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=14812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}