Main Takeaways
When making decisions about where to put their assets, users need to have access to as much relevant information as possible.
Thanks to our proof-of-reserves system, anyone trading on Binance can verify that all user assets are held 1:1, plus reserves. In February 2023, we further improved this system by implementing zk-SNARKs, a form of zero-knowledge proof.
Our proof of collateral for B-tokens page shows the collateral we hold for all the different digital assets that have been wrapped for use on different chains.
Our Airdrop Portal gives users an easy way to keep track of any airdrop opportunities on Binance and how to take advantage of them.
We also offer a fully transparent breakdown of any fees you may be charged when depositing, trading, or withdrawing your assets. There are no hidden fees with Binance!
Binance exists to serve its users and help further the freedom of money. Here are four ways we’re improving access to essential information to help traders make good financial decisions.
Last year saw a number of high-profile breaches of trust in the digital asset industry. As a result, rebuilding trust and improving transparency of user funds has become one of our main goals.
We should never forget the reason we’re here, which is to serve our users as best we can and help further the freedom of money. Users need and deserve access to as much relevant information as possible when making decisions about where to put their assets and how best to use them – here at Binance as well as across the entire ecosystem. While we achieved significant progress in this regard in 2022, much work still lies ahead.
In this article, we look at four areas where we’re advancing access to essential information. Whether simple or complex, from proof of reserves and proof of collateral to airdrop portals and fee dashboards, we want anyone within the Binance ecosystem to be able to make their decisions with as many relevant inputs to hand as possible.
Proof of Reserves
Binance is committed to ensuring transparency when it comes to the safety and security of assets deposited by users. Thanks to our proof-of-reserves system, anyone can verify that Binance holds all user assets 1:1, plus reserves.
For example, when a user deposits one bitcoin, Binance’s reserves increase by at least one bitcoin to ensure client funds are always fully backed. In November 2022, we released our first attempt at a proof-of-reserves system disclosing wallet addresses holding user assets and utilizing Merkle tree cryptography to allow users to verify the inclusion of their holdings in the report. A Merkle tree, also known as a hash tree, is a data structure that efficiently verifies the integrity and consistency of large amounts of data. In February 2023, we further improved the system by implementing zk-SNARKs, a form of zero-knowledge proof, to allow all users to reliably verify the inclusion of their account balance in the liabilities report, while making sure that all sensitive user data is protected.
Having this information is important for users, whether experienced or novice, because as a trader or investor, you want to be sure that any assets you deposit on an exchange are always there for you. Binance’s commitment to providing customer fund transparency gives users the peace of mind they need to freely engage in transactions without having to worry that their digital assets are being funneled off elsewhere.
Proof of Collateral for B-tokens
Another important domain where disclosing information can give users peace of mind is the issuance and collateralization of Binance pegged tokens (B-tokens on Binance). Users can simply navigate to our dedicated Proof of Collateral for B-tokens page to see all the details.
Not familiar with the concept of wrapped tokens? In basic terms, these tokens are digital assets representing locked collateral of the original asset on a different blockchain. This mechanism allows the transfer of a token’s value and utility to non-native networks.
The practice of “wrapping” tokens emerged from the need to increase the interoperability of digital assets and expand their utility to multiple networks. B-tokens are simply wrapped tokens offered by Binance to help extend the functionality of popular assets.
For example, we hold BTC as collateral for “wrapped” BTC, which allows the asset to be used on non-native chains, such as Ethereum and BNB Chain. Our Proof of Collateral for B-tokens page shows the collateral we hold for all different digital assets that have been issued by Binance for use on different chains. Users can see the updated wallet addresses, which gives them the assurance they need that all assets are fully backed and appropriately managed.
Airdrop Landing Page
In the world of crypto and blockchain, the term airdrop refers to the free distribution of digital assets to the public — either by virtue of holding a certain other token or simply due to maintaining an active wallet address on a particular blockchain.
Airdrops are sometimes used as a marketing tool in order to raise awareness of the coin or token being distributed, as well as a method of expanding the number of holders of that asset. They can also be used to reward existing token holders or incentivize users to participate in certain activities, such as completing surveys or referring friends.
The way in which airdrops typically work is that in order to be eligible, a user must hold a certain amount of the asset in a public wallet at the time of the snapshot of the current state of the blockchain at a particular point in time.
Our Airdrop Portal gives users an easy way to check Binance’s airdrop plans and the progress of any ongoing airdrops. The goal here is to provide a transparent way for traders to keep track of any airdrop opportunities and how to take advantage of them.
Dashboard for Deposit & Withdrawal Fees
Before using a cryptocurrency exchange, you should have a full picture of all potential costs that you might incur. If you don’t have a clear understanding of any fees involved, how can you make good financial decisions?
This is where our Deposit & Withdrawal Fees display comes in. It offers a fully transparent breakdown of any and all fees you may be charged when depositing or withdrawing your assets — whether crypto or fiat. This lets users make fully informed decisions when using our platform. There are no hidden fees on Binance!
Please note that Binance does not charge deposit fees for crypto. For crypto withdrawals, a fee is paid by users to cover the costs of moving the cryptocurrency out of their Binance account. Crypto withdrawal rates are determined by the blockchain network and can change due to factors such as network congestion. Users can easily check the most recent data listed.
The display also shows all fees applicable to depositing or withdrawing fiat, depending on method, location, and currency. Also note that, when buying or selling, there are trading fees to consider, which are summarized on a separate page.
Final Thoughts
Binance is committed to improving transparency and rebuilding trust in the digital asset industry. We’ve implemented various measures, such as proof of reserves and proof of collateral, to ensure users have access to essential information when making decisions about their assets. Binance’s dedication to customer fund transparency gives users the peace of mind they need to engage confidently in transactions, knowing their account balances are always fully backed. While there’s still work to be done, we hope you agree that our efforts to date demonstrate a commitment to putting users first and helping to further the freedom of money.