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Binance publishes official Merkle Tree-based proof-of-reserves

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cointelegraph.com

Two weeks after Binance initially pledged to develop a proof-of-reserve (PoR) mechanism in response to the FTX liquidity and bankruptcy fiasco, it published its official response.In an announcement on the Binance website, the exchange outlined how users can use the mechanism to verify its holdings.

Currently, the only token available to verify through the Merkle Tree-based system is Bitcoin (BTC), though the announcement says additional coins will be added in the coming weeks.

It also highlighted upcoming transparency updates which include the involvement of third-party auditors to audit its PoR results and implementation of ZK-SNARKs in its PoR methods, among others.Days after Binance announced its intention for PoR, it released the public details of its wallet addresses and on-chain activity.Binance CEO Changpeng “CZ” Zhao tweeted about the latest update.

Naturally, the Twitter community responded and many with positive comments towards the transparency efforts. This is a great initiative.

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