Procedure Proof-of-reserves (PoR) is able to restore the confidence of retail investors in trading platforms. About this in conversation with The Block Bobby Zagotta, head of the American division of the Bitstamp cryptocurrency exchange, said.
According to the top manager, PoR provides clients with more information about how centralized platforms manage clients’ assets.
“On the one hand, the way many exchanges work is rather opaque. On the other hand, blockchain technology creates the opportunity for radical transparency. […] PoR will allow clients to see that the assets on the exchange exceed its liabilities”, he said.
Zagotta admitted that the current method is “not perfect” and is nothing more than a “snapshot”.
Recall that Kraken co-founder Jess Powell criticized Binance’s audit of reserves data. According to him, it does not make sense without the inclusion of obligations.
Earlier, Vitalik Buterin, the founder of Ethereum, proposed using zk-SNARKs as part of the procedure to improve the efficiency of PoR..
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.