🔍 CRYPTO KNOWLEDGE NIGHT
13 NOVEMBER 2026
PROOF OF RESERVES:
WHAT DOES IT ACTUALLY PROVE?
Many crypto users see an exchange publish a Proof of Reserves (PoR) report and assume their funds are completely safe.
But proving reserves is NOT the same as proving complete financial safety.
📚 WHAT IS PROOF OF RESERVES?
Proof of Reserves is a transparency method that allows an exchange to demonstrate that it controls certain on chain assets and compare them with included customer balances.
🔹 Merkle Tree:
A cryptographic structure that helps users verify whether their balance is included in a report.
🔹 zk-SNARK:
A cryptographic method that can prove certain calculations without revealing all underlying private information.
⚠️ WHAT PoR DOES NOT GUARANTEE
1️⃣ It is a snapshot, not a real time guarantee.
2️⃣ It does not necessarily cover every off chain liability.
3️⃣ It cannot guarantee future withdrawals.
4️⃣ It does not prove an exchange will remain solvent forever.
✅ 4 THINGS EVERY USER SHOULD CHECK
• Check the report's snapshot date.
• Check which assets and liabilities are included.
• Understand the verification methodology.
• Verify your own account balance where the exchange provides this facility.
💡 Remember:
Transparency is valuable, but understanding what is being verified is even more important.
What do you check first when an exchange publishes its PoR report?
$AAPLB $MSFTB $NVDAB #USPPIMissMayEaseBTCPressure #BitcoinCoreDisclosesTorTrafficVulnerability #WhatWillDriveCryptoandStocks’NextRebound?
13 NOVEMBER 2026
PROOF OF RESERVES:
WHAT DOES IT ACTUALLY PROVE?
Many crypto users see an exchange publish a Proof of Reserves (PoR) report and assume their funds are completely safe.
But proving reserves is NOT the same as proving complete financial safety.
📚 WHAT IS PROOF OF RESERVES?
Proof of Reserves is a transparency method that allows an exchange to demonstrate that it controls certain on chain assets and compare them with included customer balances.
🔹 Merkle Tree:
A cryptographic structure that helps users verify whether their balance is included in a report.
🔹 zk-SNARK:
A cryptographic method that can prove certain calculations without revealing all underlying private information.
⚠️ WHAT PoR DOES NOT GUARANTEE
1️⃣ It is a snapshot, not a real time guarantee.
2️⃣ It does not necessarily cover every off chain liability.
3️⃣ It cannot guarantee future withdrawals.
4️⃣ It does not prove an exchange will remain solvent forever.
✅ 4 THINGS EVERY USER SHOULD CHECK
• Check the report's snapshot date.
• Check which assets and liabilities are included.
• Understand the verification methodology.
• Verify your own account balance where the exchange provides this facility.
💡 Remember:
Transparency is valuable, but understanding what is being verified is even more important.
What do you check first when an exchange publishes its PoR report?
$AAPLB $MSFTB $NVDAB #USPPIMissMayEaseBTCPressure #BitcoinCoreDisclosesTorTrafficVulnerability #WhatWillDriveCryptoandStocks’NextRebound?
