Proof Of Reserves – The Making Of A Bitcoin Industry Standard
As we venture into the year 2022, Proof of Reserves is emerging from a niche concept into a fledgling industry standard.In January 2020, Bitcoin Magazine published a description of “Why Proof of Reserves is Important to Bitcoin.”The timing was no accident - the recent anniversary of the QuadrigaCX’s implosion kept fresh in many of our minds the risks we were striving to allay, especially here in Canada.Two years might not sound like a long time to the average person, but it’s a significant stretch of history in the world of cryptocurrencies - it’s more than one-seventh of Bitcoin’s entire....
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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....
Huobi announced (via reddit, yesterday) that it will be implementing an industry standard Proof of Reserves program by the end of August, with a Trading/Asset Separation scheme to follow in September. Huobi is following in the footsteps of its foreign and domestic exchange counterparts by submitting its database and hot and cold storage wallets to a third-party audit. Their action follows on from wider concerns raised by the Chinese Bitcoin community that Chinese exchanges are operating by fractional reserve and user demands that exchanges prove 100% reserves. The Spectre of Mt. Gox means....
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....
"We share the belief that it should be necessary for crypto platforms to publicly share proof of reserves," the Crypto.com CEO said. Kris Marszalek, CEO of cryptocurrency exchange Crypto.com has become the latest crypto company promising to publish "audited proof of reserves," amid the downfall of rival exchange FTX. "We share the belief that it should be necessary for crypto platforms to publicly share proof of reserves," said Marszalek, adding that his company "will be publishing our audited proof of reserves."We share the belief that it should be necessary for crypto platforms to....
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....