LBank Announces to Publish an Auditable Merkle Tree and Proof of Reserves (POF)
PRESS RELEASE. INTERNET CITY, DUBAI, Nov. 12th, 2022 – Global crypto exchange, LBank, has recently announced that it will share its Merkle-tree proof-of-reserves, in view of recent concerns about the opaque nature of certain industry issues. LBank gave a public statement on November 9th stating that the exchange hopes to facilitate industry transparency and built a strong foundation of trust between exchanges and investors. LBank stated in an announcement and Twitter post to their users that “We believe that it is crucial for tier-one cryptocurrency exchanges to publicly share their....
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Similar protocols are used by Kraken, Bitmex, Gate.io, and many other exchanges, but were not used by FTX. In the wake of the FTX liquidity crisis, two major crypto exchanges have announced that they will provide Proof of Reserves, also known as Proof of Funds (PoF) within the next month. In an official tweet, OKX stated “We're hiring Armanino for auditing & will publish an auditable Merkle POF asap.” The company then listed 23 BTC addresses and 13 Ethereum addresses containing some of the exchange’s reserves.For #OKX, transparency, risk management, & consumer protection come first. We're....
This article helps you to understand the importance of and differences between Merkle vs. Verkle trees in blockchain. Merkle trees vs. Verkle treesThere are many differences between both types of trees, particularly in providing Merkle proofs and Verkle proofs.The whole set of sister nodes in a Merkle tree, including Merkle Patricia trees, constitutes evidence of a value. The proof must include all nodes in the tree with any parent node in common with the node you are attempting to prove. On the other hand, in a Verkle tree, you only need to supply the path plus a tiny bit extra as....
Chinese exchange OKCoin today released details of an audit to prove it holds 104.86% of the bitcoin reserves required to cover customer balances. Going forward, the company will also seek to implement a cryptographic 'merkle tree' verification system, allowing users to verify for themselves that their account balance was included in the audit data. Other China-based exchanges are busy working on audits of their own, following recent demand from the local community for the companies to be more transparent in their accounting. BTC China announced on 19th August that it would allow an....
The call for a more detailed disclosure of liquidity through the use of "Proof-of-Reserves" has been backed by many high-profile industry figures. Following the liquidity crisis and acquisition of cryptocurrency exchange FTX, Binance CEO Changpeng “CZ” Zhao said his exchange will soon start a Proof-of-Reserves audit system to allow verification of its digital asset holdings.In a Nov. 8 Twitter post, Zhao pledged to implement a Proof-of-Reserve mechanism at Binance to provide “full transparency” through the use of Merkle Trees — a data structure used to encode blockchain data more....
Blockstream and bitcoin core developer Pieter Wuille introduced the concept of tree signatures to create a more efficient multi-sig method with enhanced privacy. Tree signatures can be coded only in the extended Alpha scripting language and can implement M-of-N multi-sig transactions more efficiently than bitcoin scripting, as it requires more than one keyholder to participate. With tree signatures, only the keys actually used for signing are exposed to the public. For instance, in a 1-of-N multisig policy, only one key is revealed on spending and the other keys stay hidden. Bitcoin and....