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Bitcoin advocate Nick Carter has published an in-depth analysis of the centralized exchange’s proof of reserve, ranking the proofs provided by some of the most prominent crypto trading platforms in the field. attached.
carter It was published A detailed inspection of the quality of Proof of Reserves (PoR) of several exchanges. A cryptocurrency executive uses parameters such as proof of holdings and disclosure of liabilities, incorporates third-party auditors, obtains his PoR of all assets, and determines which PoRs are of the highest quality. Demonstrated credibility by committing to ongoing steps to
Crypto trading platforms Kraken and BitMEX ranked top. Kraken’s use of Armanino to prove its stockpiles gives customers an “adequate level of confidence” that there are no hidden debts, according to Carter, who also conducts his PoR every six months. I applauded the efforts of the trading platform.
On the other hand, BitMEX, which also received accolades, opted for a highly transparent model that does not rely on auditors. On the asset side, the exchange listed all his BTC balances held by the exchange, proving that they can be used on BitMEX Multisig. Along with its debt, the company has released a complete Merkle tree of user balances. “This means that there are no exclusions or negative balance issues because anyone can fully scrutinize their debt,” Carter wrote.
Related: CryptoQuant verifies Binance reserves, reports no ‘FTX-like’ behavior
Some of them got high marks for their PoR scores, but cryptocurrency exchange Binance’s PoR didn’t do well in the rankings. According to Carter, the exchange’s low PoR score is due to an incomplete PoR. A cryptocurrency analyst said despite Binance CEO Changpeng Zhao (CZ) stressing the importance of his PoR after his FTX demise, executives are still grappling with their own agendas. No. he wrote:
Binances first PoR does not give a strong guarantee. It only covers Bitcoin representing 16.5% of client assets.
A PoR helps ensure that individual users are included in a set of responsibilities, but Carter said the PoR doesn’t represent the entire list of responsibilities. This makes it difficult for third parties to verify procedures according to analysts.
