Binance has developed a proof-of-reserves (PoR) system that is faster and less expensive for exchanges to run because it is based on zero-knowledge proofs.
Today, Binance revealed important upgrades to its proof-of-Reserves (PoR) platform. For its users, it seeks to increase security, privacy, and dependability. Four more tokens will be added to the 13 currently supported tokens as a result of the improvements, which will also increase the PoR system’s effectiveness and cost-effectiveness.
The key modification to the PoR system is the use of zk-SNARK, a zero-knowledge-proof technology that increases system security. Binance is experimenting with this technology for the first time with this.
The company has committed to continue working to improve it over time. Binance and Polyhedra Network have joined to make sure the implementation of zk-SNARK.
Binance Open Sources Its PoR Structure
Now that Binance’s proof-of-reserve mechanism is open-source, any cryptocurrency exchange can use it and guarantee its transparency. On the Binance GitHub website, you can access the source code, licensing information, documentation, and more.
Binance is establishing a brand-new norm for transparency with its most recent action. Exchanges won’t have to spend money creating their own solutions or paying for services from other vendors, such as the zero-knowledge PoR system introduced by Hacken in 2022.
In order to enhance its POR system, Binance collaborates with Polyhedra Network.
In its official blog article, Binance goes in-depth on the zk-SNARK implementation and how it enhances the existing PoR system. The idea of zero-knowledge proofs and how they enhance proof-of-reserve systems are also explained in the article.
There will also be an Academy article made available with a more thorough explanation.
Users of Binance may now confirm that the exchange completely backs their assets thanks to improvements to the PoR system. The full reserve for the exchange can also be verified by outside third-party entities. However, the information is based on snapshots rather than real time.
The PoR system’s data integrity has been significantly increased thanks to Polyhedra Network. According to PolyhedraZK, cryptographic assumptions that are challenging to crack computationally ensure the security of zero-knowledge proofs. The PoR system uses secure cryptographic tools that have been utilized in numerous other systems.