What does Proof of Reserves (PoR) prove?
Proof of Reserves (PoR) is publicly available evidence from an exchange proving that the assets held by the platform are no less than users’ balances on the platform. A common PoR method uses a Merkle tree to aggregate all users’ balances, and each user can use their own Merkle path to verify whether their balance has been included.
The advantage of a Merkle tree is that by publishing just one root hash, each user can independently confirm that their balance has been included, without disclosing everyone’s detailed information.
In Binance’s Proof of Reserves, users can independently verify whether assets such as $BNB in their accounts have been included.
#BNB
Proof of Reserves (PoR) is publicly available evidence from an exchange proving that the assets held by the platform are no less than users’ balances on the platform. A common PoR method uses a Merkle tree to aggregate all users’ balances, and each user can use their own Merkle path to verify whether their balance has been included.
The advantage of a Merkle tree is that by publishing just one root hash, each user can independently confirm that their balance has been included, without disclosing everyone’s detailed information.
In Binance’s Proof of Reserves, users can independently verify whether assets such as $BNB in their accounts have been included.
#BNB
