Binance include zk-SNARKs to upgrades proof-of-reserves verification
Cryptocurrency exchange giant Binance expresses a proof-of-reserves verification system upgrade, it would currency incorporate zk SNARKs a cutting-edge technology.
Binance reports will allow it to verify its reserves in a more secure, transparent manner.
The zk-SNARKs upgrade is expected to significantly improve the security and transparency of the verification process.
3. Product and Service. Plus transparency.— Binance (@cz_binance) February 10, 2023
The #Binance Proof of Reserve system has now integrated with zk-SNARK, a zero-knowledge verification method.
It will also be made open source. We hope this would help the entire industry benefit. https://t.co/ijVVeF8iFT
According to Changpeng Zhao a CEO of Binance express that the zk SNARK's upgrade which was initially suggested by Ethereum founder Vitalik Buterin will provide 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.
Zk-SNARk is known for a zero-knowledge non-interactive argument of knowledge. is a cryptographic technique that allows one party to prove to another that they have a certain amount of assets without revealing any other data. this makes it a better solution for verifying Binance's reserves as it allows the exchange to prove the existence of its assets while keeping sensitive information confidential.
Binance along with other exchanges like Crypto.com, Bybit, and OKX implemented a tree-based proof-of-reserves system to increase transparency. Despite this effort, some experts remain skeptical about the system's effectiveness.
In an interview with the Wall Street Journal, Paul munter a chief accountant of the Securities and Exchange Commission express that proof-of-reserve reports do not provide sufficient evidence for stakeholders to determine a company's financial stability Despite these criticisms Binance and other exchanges continue to push forward with their commitment to improving transparency in the crypto industry.