Multiple Cryptocurrency Exchanges Intend To Publish 'Proof Of Reserves' - Fin Tech - United States - Mondaq

According to reports, multiple cryptocurrency exchanges have recently indicated an intent to publish so-called proof of reserves in an attempt to alleviate market concerns. One major exchange recently released a list of its hot wallet and cold wallet cryptocurrency addresses, and several other major exchanges have committed to publishing proof of reserves, also known as Proof of Funds (PoF). According to reports, PoF involves an exchange engaging a third-party auditor to record all customer balances at the exchange and convert the balances into a cryptographic Merkle tree, which anonymizes the data. Customers of the exchange are then able to use the Merkle tree data to compare the total balances held by customers with the total assets held by the exchange, to gain assurance that the exchange holds sufficient cryptocurrency funds to meet customer withdrawal requests. According to reports, two separate cryptocurrency firms have recently announced solutions intended to assist exchanges in facilitating and demonstrating PoF audits.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
© Mondaq® Ltd 1994 – 2022. All Rights Reserved.
Email
Password

Passwords are Case Sensitive

Forgot your password?
Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms
Articles tailored to your interests and optional alerts about important changes
Receive priority invitations to relevant webinars and events
You’ll only need to do it once, and readership information is just for authors and is never sold to third parties.
We need this to enable us to match you with other users from the same organisation. It is also part of the information that we share to our content providers (“Contributors”) who contribute Content for free for your use.
Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

source

How To Make Huge Profits In A Short Time With Crypto
Get detailed training system that shows an absolute beginner (without any skill) how to make huge profits in a short time with crypto.