Binance Releases Official Merkle Tree-based Reserve Evidence

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Last Updated on November 27, 2022 by Bitfinsider

Binance presented its formal reaction two weeks after it first vowed to implement a proof-of-reserve (PoR) system in response to the FTX liquidity and insolvency debacle.

In a release on its website, Binance described how users may utilize the system to confirm its holdings. Bitcoin BTC is the only token currently accessible for verification using the Merkle Tree-based mechanism.

According to the release, new coins will be added during the next several weeks.

It also highlighted forthcoming transparency enhancements, such as the use of third-party auditors to examine its Proof-of-Residence (PoR) findings and the incorporation of ZK-SNARKs into its PoR procedures, among others.

A few days after announcing its plan to support PoR, Binance made public its wallet addresses and on-chain activities.

The CEO of Binance, Changpeng “CZ” Zhao, tweeted the new update. Obviously, the Twitter community responded, with many expressing approval of the openness initiatives.

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