Binance’s Automation Paves the Way for Easier B token Collateralization
Binance has a new system in place to prevent customers funds and collateral from being mixed with B-Tokens.
B-Tokens are now restricted by the semi-automated new method until the associated collateral wallet has sufficient crypto asset reserves.
Binance created the famous Binance 8 wallet by mistakenly combining client assets and collateral assets. This caused some B-Tokens appear to be significantly overcollateralized.
Binance has created a new system to prevent B-Token collateral from being mixed with customer funds. This is in response to recent reports that Binance had incorporated user money into its Binance-peg token. One ETH B-Token can be created for each ETH deposit. Each B-Token must be kept in a wallet that has ETH backing until the associated collateral wallet has sufficient crypto asset reserves. Binance will still be able to take action in case of security breaches. However, the new semi-automated method still allows them to press the switch to save their face. Nevertheless, it isn’t a perfect totally automated system, and as we’ve seen in the past, Binance has handled this type of coin minting improperly.Previously, Binance created the now-famous Binance 8 wallet by mistakenly combining client and collateral assets, which caused some B-Tokens to seem to be significantly overcollateralized. According to the spokeswoman, the new automation component will help the exchange manage risk. It recently announced that zero-knowledgeproofs would be added to increase the privacy of its proof-of-reserves reports. Zero-knowledge proofs are used to verify the veracity and validity of claims without disclosing the methods used to make them. Binance’s case will see changes to Binance’s Merkle root hash used to verify customer asset balance changes. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comAnnieCoincu NewsTags: B-TokenB-Token CollateralizationBinance