Last Friday (10) Binance launched a new tool that allows its customers to prove their wallet’s reserves and access a free service for anyone who has an account with the exchange.
The new service is powered by zk-SNARKs, an open-source algorithm used to prove the reserves of the world’s largest cryptocurrency exchange by volume.
Since it is the first implementation of zk-SNARKs as proof of reserves, the Binance community can provide feedback on the new solution.
How do you check a wallet’s reserves on Binance with the new tool?
All customers with Binance accounts can use the new proof of reservation verification tool when opening their wallets.
According to Binance, the new service includes providing transparency to its customers, who can now securely verify information.
“Continuing efforts to provide transparency in user funds, Binance is pleased to introduce zk-SNARKs, a zero-knowledge verification method that keeps sensitive information private and more secure, in its Evidence of Verification System. Reservations (PoR).”
In addition to launching the new Proof of Reserves, Binance has added Shiba Inu (SHIB), Polkadot (DOT), Chiliz (CHZ), and Solana (SOL) tokens. A total of 13 assets are available as proof of reservations.
However, the new private proof of bookings is just one step for Binance to demonstrate that it has customer assets at a 1 to 1 ratio. Going forward, the exchange says it wants to strengthen its security with customers by constantly updating its tool.
“Binance plans to add more tokens to the HbR system in the coming weeks and will continue to make the verification feature more reliable, secure and private.”
Understand how important proof of reserves is to the cryptocurrency market
The year 2022 turned out to be an old market fear: brokerage is not a wallet. Thus, the importance of a cryptocurrency exchange with safe reserves is crucial to ensure the safety of users’ funds and maintain the integrity of the cryptocurrency market.
In short, safe reserves are critical to ensuring the safety of users’ funds, increasing trust and transparency, maintaining market integrity, and complying with regulations.
That is why it is important to choose a cryptocurrency exchange that maintains safe reserves and has a good reputation and safety record.
After the collapse of the FTX, market brokers try to prove their reservations as best they can, as traditional accounting firms are not yet willing to interfere in the market. Binance itself has had an audit canceled in recent months.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
