The platform says, “Customer assets are backed 1:1.” How can you verify that yourself?
Here’s one way: Proof of Reserves commonly uses a Merkle tree to organize all users’ balances. Each user can use their own Merkle path to check whether their balance has been included.
The advantage of a Merkle tree is that once a single root hash is published, each user can independently confirm that their balance is included—without making everyone’s account details public.
Understanding this is more useful than memorizing a bunch of jargon. Markets are always uncertain, so think ahead about what you’ll do if you get it wrong.
With Binance’s Proof of Reserves, users can independently verify whether assets such as $BNB in their accounts have been included.
Here’s one way: Proof of Reserves commonly uses a Merkle tree to organize all users’ balances. Each user can use their own Merkle path to check whether their balance has been included.
The advantage of a Merkle tree is that once a single root hash is published, each user can independently confirm that their balance is included—without making everyone’s account details public.
Understanding this is more useful than memorizing a bunch of jargon. Markets are always uncertain, so think ahead about what you’ll do if you get it wrong.
With Binance’s Proof of Reserves, users can independently verify whether assets such as $BNB in their accounts have been included.
