Bitcoin exchange OKX has updated its Proof-of-Reserves (PoR) procedure by adding support for zk-STARKs zero-knowledge proof.
⚡️ #OKX Proof of Reserves (PoR) is now powered by zero-knowledge (ZK) proof technology ⚡️
Our April PoR report offers industry-leading privacy protection via zk-STARKs and shows 100% reserve ratios for $BTC, $ETH, $USDT& 18 additional assets.
Verify: https://t.co/CDPCCaEuWg pic.twitter.com/DonPfh8nn3
— OKX (@okx) April 28, 2023
The new system allows users to independently verify assets while maintaining privacy. The obligations of the platform are not disclosed.
The event is timed to coincide with the April PoR report.
The latest assessment confirmed 100% redundancy of Bitcoin, Ethereum, USDT and 18 other digital assets. The total value of the cryptocurrencies that passed the PoR increased from $8.9 billion to $10.7 billion in a month.
In November 2022, Binance launched the first CEX Proof-of-Reserves. The reason was the loss of confidence in the bitcoin exchange after the collapse of FTX.
Initially, the company provided information about the coverage of user deposits in the first cryptocurrency. The Binance team used Merkle Tree to validate on-chain data.
Subsequently, similar initiatives were implemented by Bitget, OKX, Gate.io And Huobi.
A number of experts questioned the effectiveness of such checks, noting that the indicators do not indicate the safety of users’ assets.
In February 2023, Binance implemented the zk-SNARK tool in the PoR system to improve security and privacy. The use of technology was proposed by Ethereum co-founder Vitalik Buterin.
Recall that in December 2022 the representative SEC Paul Manter urged investors to be “very cautious” about auditing reserves of cryptocurrency exchanges. In his opinion, such audits do not always show the real financial condition of the company.
In March 2023, Senators Elizabeth Warren and Ron Wyden called on the authorities to take action against “bogus audits” of crypto projects.
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