What is Proof of Reserves?

November 19, 2022A Proof-of-reserves is an independent third-party audit that provide transparency and proof that a custodian owns the assets it claims to hold on behalf of its clients.A PoR method enables users to instantly audit the reserves of crypto exchanges.This auditor takes an anonymized snapshot of all balances held and aggregates them into a Merkle tree — a privacy-friendly data structure that encapsulates all client balances.In 2021 Ledn, a digital asset lending platform, became the first lender to undergo a PoR attestation with a certified public accountant.Following the epic meltdown of FTX, some within the industry are calling for PoRs to provide greater transparency–but it has its released its Proof-of-Reserves last week.Read More