{"id":14835,"date":"2022-11-26T09:09:02","date_gmt":"2022-11-26T09:09:02","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binance-publishes-its-proof-of-reserves-system-for-bitcoin-holdings-additional-assets-coming-soon-bitcoin-news\/"},"modified":"2022-11-26T09:09:02","modified_gmt":"2022-11-26T09:09:02","slug":"binance-publishes-its-proof-of-reserves-system-for-bitcoin-holdings-additional-assets-coming-soon-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binance-publishes-its-proof-of-reserves-system-for-bitcoin-holdings-additional-assets-coming-soon-bitcoin-news\/","title":{"rendered":"Binance Publishes Its Proof-of-Reserves System for Bitcoin Holdings, Additional Assets Coming Soon \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n<\/div>\n

On Nov. 25, the largest cryptocurrency exchange in terms of daily trade volume, Binance, published its bitcoin proof-of-reserves (POR) system using The Merkle approach. At the time of writing, the snapshot provided by Binance shows the firm\u2019s onchain reserves equate to 582,485 bitcoin, while the company\u2019s customer net balance is roughly 575,742 bitcoin.<\/strong><\/p>\n

**Editor\u2019s Note: This article was updated to reflect new commentary<\/a> from Kraken executive Jesse Powell on Nov. 25, 2022.<\/em><\/p>\n

Binance\u2019s Bitcoin Proof-of-Reserves Ratio Is Currently 101%<\/h2>\n

Binance has published the company\u2019s proof-of-reserves system<\/a> in regard to the bitcoin (BTC<\/a>) cache the company holds. The POR feature is initially starting with Binance\u2019s bitcoin holdings, but other \u201cnetworks [are] being added in the next couple of weeks.\u201d The news follows the recent FTX collapse<\/a> and the crypto community insisting<\/a> that centralized digital currency trading platforms prove their reserves. In addition to the crypto community, exchange executives like Kraken\u2019s Jesse Powell<\/a> also chimed in on the POR conversation.<\/p>\n

Two days ago, Bitcoin.com News reported<\/a> on Powell\u2019s commentary about so-called POR lists that simply showcase digital currency addresses. Powell said these lists of addresses were not legitimate POR audits and he stressed that a true POR audit \u201crequires cryptographic proof of client balances and wallet control.\u201d Powell also shared a blog post written in 2014 called \u201cProving Your Bitcoin Reserves,<\/a>\u201d which discusses The Merkle approach<\/a>. Basically, because exchanges use hundreds of addresses a Merkle Tree can be leveraged to consolidate all the data into a single hash, which then can be cryptographically verified by anyone.<\/p>\n

Nic Carter\u2019s proof-of-reserves list or \u201cWall of Fame,\u201d<\/a> lists centralized trading platforms that have submitted \u201cfull POR\u201d audits. At the time of writing, there are five crypto platforms that have shared full PORs that feature The Merkle approach on the Wall of Fame. Three of them (Coinfloor, Gate.io, and HBTC), however, provided Merkle-based assessments in May 2020, May 2021, and August 2021. Kraken and Bitmex are up-to-date, as they shared Merkle-based assessments this month. On Friday, Binance\u2019s CEO Changpeng Zhao (CZ) tweeted<\/a> about the company sharing the firm\u2019s POR.<\/p>\n

A number of crypto supporters were pleased with Binance sharing the company\u2019s POR. The whistleblower known as Fatman replied to CZ\u2019s tweet. \u201cThis is amazing,\u201d Fatman said<\/a>. \u201cHope smaller exchanges quickly follow suit. Thanks for leading the way with this extremely important initiative. Having cryptographic proof of an exchange\u2019s solvency is a serious game changer.\u201d<\/p>\n

\"Binance
Binance\u2019s bitcoin POR statistics recorded on Nov. 22, 2022.<\/figcaption><\/figure>\n

Binance\u2019s snapshot was recorded on Nov. 22, 2022, at 23:59 p.m. (UTC) and records show Binance\u2019s onchain reserves equate to 582,485 BTC<\/a>, while customer balances equate to 575,742 bitcoin. That gives Binance a reserve ratio of around 101% and the blog post has a section that says users can \u201cclick to verify\u201d their BTC<\/a> assets held on Binance. In order for users to be able to verify balances and transactions<\/a>, they can log into Binance, and click the audit button in the wallet section. \u201cYou will be able to find your Merkle Leaf and Record ID within the page,\u201d Binance explains.<\/p>\n

Additionally, Binance has disclosed upcoming plans for the POR list which include:<\/p>\n