The proof-of-reserves technology used by cryptocurrency exchange Binance is described on a new webpage that was just published. The business will start off with BTC reserves. At the moment, Binance’s reserve ratio is 101%. It indicates that the business has enough bitcoin to cover each user’s balance. Just a few weeks have passed since the closure of FTX, another well-known bitcoin exchange. With regard to FTX, the business was going through a liquidity issue. Because it was unable to satisfy end users’ and investors’ demand, it stopped processing withdrawals. Since then, cryptocurrency businesses, in particular cryptocurrency exchanges, have made an effort to be more open about customer funds. It entails providing more information on hot and cold wallets. Before you can fully trust bitcoin exchanges and how they handle funds, there is still a lot of work to be done.
Binance introduces a proof-of-reserves system for Bitcoin holdings
