Just-In: Binance unlocks a new feature for Bitcoin holders
In a recent announcement, Binance, a top cryptocurrency exchange, revealed the Merkle tree Proof of Reserves system. Binance claims that this feature will increase transparency and protect user funds.
WuBlockchain has tweeted that the launch of this feature will begin with BTC and then move to other tokens, networks, and currencies in the coming weeks. Binance will also implement ZK SNARKs for PoR later, to improve privacy and robustness.
The Proof of Reserves (PoR), the next step to ensure transparency of user funds, was announced by the top cryptocurrency exchange. Binance also announced its plans to introduce the next batch of PoR, which will include new assets. Binance plans to also include third-party auditors for the verification of PoR
ZK-SNARKs will be implemented by the top exchange. This will improve privacy and robustness and show that each user’s net balance (USD), is not negative. Binance will also offer Margin and Loans services for its users.
Notably, after the FTX collapse, where the now-bankrupt cryptocurrency exchange moved user funds to mitigate its own risk, crypto exchanges devised a transparency solution known “proof-of-reserves.” The next batch of PoR, including new assets, will be released in the next two weeks.
Ethereum CEO shares his opinion on ZK-SNark feature
In fact, Vitalik Buterin, the CEO and co-founder of Ethereum, has previously discussed the ZK-SNark feature being used to increase Ethereum’s scalability.
Notably, the Ethereum CEO highlighted in the previous presentation that ZK-SNARK not only increases the efficiency and memory-efficient shielded transactions. He also stated that the complexity of Ethereum’s onchain abstractions is being examined can only bode well to the platform’s future.
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