Topic: Binance Users Can Now Verify The Bitcoin They Own Via Merkle Tree - page 3. (Read 448 times)

What are you talking about? You can always verify actual balances on any block chain using any 3rd party to lookup any address, etc.

That is the point of blockchain and its value, everything is public data. It is self audit system.

You could never prove to the whole world you have x amount of gold in a vault. You can with crypto though.

At very least, people can verify they hold more coin than coin belongs to the customer. People still need to trust the exchange to give them their money when they request withdraw.

ok, they hold 0.5M of users BTC, but how do I know that this include mine bitcoins? How do I know if their liability is not 10x bigger (5M bitcoins) and this POR (proof of reserve) is not only a 10% fractional reserve?

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CMC lauched a proof of reserve badge next to exchanges that done POW.
https://coinmarketcap.com/rankings/exchanges/

Everyone can go and check how much founds exchanges have. So far data is available for binance, kucoin, bitfinex, bybit, okx, crypto.com, huobi


Have you ever read comments on twitter under most viewed tweets? Its 99% a spam of "send me 1 BTC i'll send you 2 BTC back". Its not media manipulation. Its the only way to avoid spam and scams.

For every system that's been made, there will always be a loophole for it. We may not see it for now since it's just new but wait until several months or years and we'll see another fiasco.

Maybe it will be made by other competitor of Binance or it will be Binance itself.

CZ is stepping up the game for the exchanges and asking to follow him by doing such through merkle tree. On the otherhand, those that want to see their reserve funds, it's a good thing.

Binance have opened their Proof Of Reserve(POR) system to the general public, and users of the exchange can now verify their amount of Bitcoins they hold in the exchange via a Merkle Tree.

Since the FTX fiasco, alot of cryptocurrency investors have lost confidence and trust in the centralized system of holding and trading coins, many now calling for a quick adoption of decentralization since its the only way investors can truly own their crypto assets..

CZ, being the CEO of the (supposedly) world largest centralized crypto currency exchange, in the place of Binance, has been doing all he possibly can to see that trust returns to the centralized crypto holding/trading firms, he as been on the forefront advocating for a new system where centralized platforms can proof the the public that customers funds are indeed, in their custody, to give users the assurance that anytime they request for their money, they would get it.. This system is termed Proof Of Reserve(POR).

Binance, on the 25th of November, 2022 announced the launch of their proof of reserve system where users can now be able to verify the amount of Bitcoins they hold on binance via a Merkle tree.

From the root Merkle tree, it is shown that the exchange currently has BTC582,485.9302 BTC in its on-chain reserve while BTC575,742.4228 BTC belongs to customers of the exchange.

What do you guys think about this?
Do you think that if all other centralized platforms launch their POR, trust can really return to the centralized system of cryptocurrencies?

Personally, I think CZ/Binance Is doing all they can to bring transparency and trust to centralized exchanges again, but in all, this still does not change the fact that decentralization is needed at this stage, though the effort is really commendable, but by now, decentralization ought to be on everyones mind.

Let's discuss.