Binance, a cryptocurrency exchange, has reportedly added 11 more tokens to its proof-of-reserves (PoR) report, according to a statement on March 7. Mask Network, Enjin Coin, WazirX, The Graph, Chromia, Curve DAO Token, 1inch Network, PowerPool, Hashflow, SSV network, and Dogecoin are a few of these.
In the most recent update, Binance said that its proof-of-reserves (PoR) system currently has over $63 billion spread over 24 assets. The top assets on the exchange are Bitcoin, Ether, and Tether, with net client balances of $12.7 billion, $7.1 billion, and $16.3 billion, respectively.
In the aftermath of FTX’s collapse, exchanges have started using the PoR approach for increased transparency; however, experts have frequently warned consumers of the limits of such methodology. They cannot be disclosed unless financial statements support the PoR and address issues with leverage, collateralization, and associated proof of liabilities.
In order to ensure that consumers can rest comfortably knowing their assets are kept for them 1:1 in our custody, Binance’s PoR “uses Merkle trees to add up on-chain data.” The exchange implemented ZK-SNARKs in February 2023 as part of a significant update to its PoR system, which Binance said will “improve the privacy and security of user data throughout the verification process.”