Human beings can do a lot of things really well, but the greatest thing in our arsenal is, by far, that tendency to grow on a consistent basis. We say this because the stated tendency has already fetched some huge milestones, with technology appearing as a rather unique member of the group. The main reason why technology’s credentials are so anomalous is birthed by its skill-set, which was unprecedented enough to realize all the possibilities for us that nobody could have imagined otherwise. Nevertheless, a slightly closer look will reveal how the whole runner was also very much predicated upon the way we utilized those skills across a real-world environment. The latter component was, in fact, what gave the creation a spectrum-wide presence, and consequentially, kickstarted a tech revolution. This revolution, as we discovered, will go on to scale up the human experience from every conceivable direction, but even after achieving such a monumental feat, technology will somehow continue to bring all the right goods to the table. The same has become more and more evident in recent times, and truth be told, Binance’s latest decision should only make that trend bigger and better moving forward.
Cryptocurrency exchange, Binance has officially launched a dedicated website to give users a clear idea about its proof-of-reserves system. According to certain reports, while the company will begin with BTC holdings, it eventually plans on offering similar proof-of-reserves for ETH, USDT, USDC, BUSD, and BNB. But how does the whole thing works? Well, all a user has to do is log on to the platform and click the wallet option. Next up, they need to select the audit button, which will instantly generate a unique record ID that confirms assets are covered and also delivers users’ asset balance at the time of the audit. Hold on, there is more. In case you feel like double-checking the numbers, you can also independently verify your funds by copying the source code into a python application and cross reference the whole lowdown. Adding even more value to this initiative is Binance’s intention to bring in third-party auditors and implement a zero-knowledge proof technology so to bolster privacy, increase reliability, and prove “the total net balance (USD) of each user is non-negative.”
The move provides an interesting follow-up to some recent developments in the crypto sphere, with FTX’s sensational collapse headlining the same.
“Given recent events, it is understandable that the community will demand more from crypto exchanges, far more than what is currently required of traditional financial institutions. That’s why we’re pleased to provide this latest feature for our users to verify their funds,” said Changpeng Zhao, founder and CEO of Binance. “As Binance’s user community is exponentially larger than the next largest exchange, this is a massive under-taking and will take a few weeks to develop the data for the majority of our assets in custody.”
Binance’s initial effort to increase transparency actually arrived a few weeks ago when it started sharing wallet addresses with billions of dollars worth of crypto assets, as the company tried to reassure its users about being in a financially sound position. However, at the time, there was doubt in terms of whether those are user assets, or Binance’s own balance sheet, or a mix of both. Fortunately, the company took the launch in question to clear up the air.
“It is important to note that this does not include Binance’s corporate holdings, which are kept on a completely separate ledger,” Binance stated. You will have to trust Binance’s word as you can’t verify that with a blockchain explorer.”
Boasting a reserve ratio of 101%, Binance is currently providing user balances across various different products, such as Spot, Funding, Margin, Futures, Earn, and Options Wallet.