Transparency is a key requirement for modern centralized crypto exchanges. Binance’s Proof of Reserves (PoR) tool allows every user to verify that their assets are backed by the exchange’s real reserves on a 1:1 basis.

This uses a cryptographic Merkle Tree structure and zero-knowledge cryptography (zk-SNARKs). This makes it possible to confirm the existence of funds in users’ balances without disclosing users’ personal data.

Thanks to regular PoR audits, investors can be confident that the exchange is not using their deposits in third-party transactions and guarantees full liquidity.