{"id":277641,"date":"2022-11-25T15:00:36","date_gmt":"2022-11-25T15:00:36","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=277641"},"modified":"2022-11-25T14:54:43","modified_gmt":"2022-11-25T14:54:43","slug":"binance-publishes-btc-proof-of-reserves-to-provide-more-transparency-on-customer-funds","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/binance-publishes-btc-proof-of-reserves-to-provide-more-transparency-on-customer-funds\/","title":{"rendered":"Binance publishes BTC proof of reserves to provide more transparency on customer funds"},"content":{"rendered":"<p>Following promises from Binance CEO CZ, the exchange has released proof of reserves for Bitcoin held on the platform. Customer funds are backed by on-chain reserves of over 582,000 BTC \u2014 1% higher than total customer deposits.<\/p>\n<p>The customer net balance was 575,742.4228 BTC as of the snapshot taken on Nov. 11, and on-chain reserves came to exactly 582,485.9302 BTC.<\/p>\n<p>The proof currently focuses solely on BTC &#8220;with other tokens and networks being added in the next couple of weeks,&#8221; according to an announcement.<\/p>\n<p>Binance customers can verify that on-chain funds back their BTC assets by logging in and following the <a href=\"https:\/\/www.binance.com\/en\/my\/wallet\/audit\">link<\/a> in the announcement. Alternatively, users can click on &#8216;wallet' and then &#8216;audit' to view the &#8220;Merkle Leaf and Record ID&#8221; that correlates to their account balance.<\/p>\n<p>The additional functionality is a part of an overall initiative from Binance &#8220;to provide transparency on user funds.&#8221;<\/p>\n<p>While no dates were given for releasing proof of reserves for other tokens, Binance did outline its next objectives.<\/p>\n<blockquote><p><span class=\"css-1iqe90x\">&#8220;Launch the next batch of PoR in the next two weeks, including additional assets.<\/span><\/p>\n<p><span class=\"css-1iqe90x\">Involve third-party auditors to audit PoR results.<\/span><\/p>\n<p><span class=\"css-1iqe90x\">Implement <\/span><a class=\"css-1n84ehy\" href=\"https:\/\/hackmd.io\/@vbuterin\/proof_of_solvency#Improving-privacy-and-robustness-with-ZK-SNARKs\"><span class=\"css-1f5vusx\"><strong class=\"css-1lohbqv\">ZK-SNARKs<\/strong><\/span><\/a><span class=\"css-1iqe90x\"> for PoR, improving privacy and robustness, and proving the total net balance (USD) of each user is non-negative.&#8221;<\/span><\/p><\/blockquote>\n<p>Using ZK-SNARKs will allow Binance to better report on users that use margin and loan services and &#8220;to prove those users have enough other assets to cover the funds with collateral.&#8221;<\/p>\n<p>Binance confirmed that an audited review would show some users as having negative asset balances.<\/p>\n<p>The goal of the next implementation of the proof of reserves is to &#8220;prove that the total net balances (USD) of each user is non-negative.&#8221;<\/p>\n<p>The proof of reserves system used by Binance utilizes <a href=\"https:\/\/www.binance.com\/en\/proof-of-reserves#what-is-merkle-tree\">Merkle Trees<\/a> which &#8220;is a cryptographic tool that enables the consolidation of large amounts of data into a single hash.&#8221;<\/p>\n<p>Binance stated,<\/p>\n<blockquote><p>&#8220;We use these properties of Merkle Trees during our Proof of Reserves assessments to verify individual user accounts are included within the liabilities report inspected by the auditor.&#8221;<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Following promises from Binance CEO CZ, the exchange has released proof of reserves for Bitcoin held on the platform. Customer funds are backed by on-chain reserves of over 582,000 BTC \u2014 1% higher than total customer deposits. The customer net balance was 575,742.4228 BTC as of the snapshot taken on Nov. 11, and on-chain reserves [&hellip;]<\/p>\n","protected":false},"author":1264,"featured_media":277666,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39,37,76736],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Binance publishes BTC proof of reserves to provide more transparency on customer funds<\/title>\n<meta name=\"description\" content=\"Binance confirms holding more BTC than users have deposited and a way for individual users to verify their balances\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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