Should Bitcoin Exchanges Use Provision Protocols to Prove Their Solvency?
Many bitcoin users are used to store their bitcoins on online exchanges. These services present an interface that works like an online bank, allowing users to log in and easily request or make payments, deposits or withdrawals. This approach is much more accessible for an average user than the traditional approach of storing private keys or interacting with the Bitcoin network directly. However, users need to trust these exchanges, and have confidence that they will not run with their funds as the Famously, Mt. Gox in 2014 when it lost most of its customers' funds under extremely shady....
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OKCoin has passed a Proof of Solvency/Proof of Reserves audit conducted by Stefan Thomas. The audit was announced on Weibo yesterday. Fellow Chinese Bitcoin exchanges, Huobi and BTC China, are also expected to release similar announcements soon. Stefan Thomas previously conducted the same Proof of Solvency/Proof of Reserve audits for Bitfinex and Kraken. Similarly, Bitstamp was able to pass an independent test and prove their solvency to BitcoinJ developer Mike Hearn. OKCoin, along with many other industry-leading Bitcoin exchanges around the world, all now believe that providing Proof of....
Today, several exchanges — ranging from boutiques offerers of just four or five coins to larger players offering dozens — are proving their solvency on the BitShares blockchain. To find out who, how, and why, Bitcoin.com nabbed an interview with Ken Code, founder of “crypto coaching” firm BitShares Munich. Ken explains that he trades amongst the 10....
Earlier today, Stefan Thomas took to bitcointalk to announce that Bitfinex had passed their Proof of Solvency audit. The audit was conducted from Thomas's home office in San Francisco and occurred on April 5th and 6th. Bitfinex has hinted that they will be subject themselves to regular audits with different auditors each time in the continuing effort to reassure suspicious customers. In the aftermath of the Mt. Gox implosion, Bitcoiners have finally started exerting the bottom up pressure necessary to force Bitcoin exchanges to prove they aren't running a fractional reserve exchange. This....
Vault of Satoshi announces full public proof of solvency, one-uping third-party audits. Monday, the Canadian-based cryptocurrency exchange Vault of Satoshi, announced the launch of a public proof of solvency service. The company says it is the first to do so - outmaneuvering the third-party auditing efforts of rivaling exchanges. In essence, Vault of Satoshi is publishing their cold storage for the public to view. Customers can check the company's total reserves on the website with the company security center and verify the reported reserves with an independent tool. Because of security....
Bitcoin exchange Vault of Satoshi today launched a full public proof-of-solvency service for its customers, saying it is the first digital currency exchange in the world to do so. The "unapologetically Canadian" company has embarked on a string of compliance and transparency initiatives in the past months. In March, it received a full Money Services Business licence to operate in all provinces of Canada and serve international customers in listed countries. Vault of Satoshi (VoS) said its new proof-of-solvency system is "not just an audit", but provides full proof via cryptographic trees....