Binance Upgrades Proof Of Reserves With Vitalik Buterin’s zk-SNARKs Idea

The world’s largest crypto exchange Binance has integrated zk-SNARKs into its Proof of Reserves (PoR) Verification System, the crypto exchange disclosed on Friday.

In addition, Binance has added Shiba Inu (SHIB), Polkadot (DOT), Chiliz (CHZ), and Solana (SOL) crypto assets to the system, increasing the total verifiable assets to 13 popular tokens on Binance.

Binance Integrates zk-SNARKs Into Its Proof-of-Reserves System

Binance CEO Changpeng “CZ” Zhao in a tweet on February 10 said Ethereum co-founder ​​​​Vitalik Buterin earlier suggested that crypto exchange should use zk-SNARKs technology, a zero-knowledge verification method that keeps sensitive information private and more secure. Vitalik Buterin said using ZK-SNARKs will improve the trustworthiness of crypto exchanges.

“More privacy and security, this is an important step forward in PoR technology. Anyone in the industry can take advantage of our open-source PoR system so that we can provide all users with the assurance they need to feel SAFU.”

According to the official announcement, Binance has introduced zk-SNARKs to its Proof of Reserves (PoR) Verification System. It’s in line with Binance’s efforts to increase transparency on user funds.

In addition, the code for the PoR system is made open-sourced to increase transparency and help peers to adopt the technology.

Furthermore, Binance has added Shiba Inu (SHIB), Polkadot (DOT), Chiliz (CHZ), and Solana (SOL) to the PoR system. It brings the total number of verifiable assets to 13 crypto tokens on Binance. The crypto exchange also plans to add more tokens to the PoR system and work on making the verification function more reliable, secure, and private.

In November, Binance released its Proof of Reserves system utilizing Merkle tree cryptography technology to allow users to verify their holdings.

Binance Moves Towards Transparency

Binance CEO CZ aims to improve transparency in the crypto industry following the collapse of the crypto exchange FTX in November last year. The Binance FUD also took over the industry, causing massive selloffs in crypto assets.

Recently, Binance has revealed that its full audit report of assets and liabilities will take more time. Binance CEO argues audit firms are reluctant to work with crypto exchanges, but Coinbase is regularly audited by leading audit firm Deloitte.

Also Read: Coinbase Users Converts Over $5 Bn USDC To Fiat In 24Hrs, Here’s Why

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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