【Term explained】What does Proof of Reserves (PoR) prove?
A zk-SNARK scheme can prove that every user's net balance is non-negative and included in the published total, without revealing individual users' balances.
The benefit of a Merkle tree is that, by publishing just one root hash, every user can independently confirm that their balance is included—without making everyone's account details public.
With Binance's Proof of Reserves, users can independently verify whether assets such as $BNB in their account are included.
Knowledge can help you avoid some pitfalls, but it can't replace risk management.
#BNB
A zk-SNARK scheme can prove that every user's net balance is non-negative and included in the published total, without revealing individual users' balances.
The benefit of a Merkle tree is that, by publishing just one root hash, every user can independently confirm that their balance is included—without making everyone's account details public.
With Binance's Proof of Reserves, users can independently verify whether assets such as $BNB in their account are included.
Knowledge can help you avoid some pitfalls, but it can't replace risk management.
#BNB