On February 10, cryptocurrency exchange Binance announced a significant improvement to its proof-of-reserves verification process.
Binance said it will now use zk-SNARKs, a cutting-edge technology that will enable it to validate its reserves in a more secure and transparent way.
Proof-of-reserves verification has become a vital component of the cryptocurrency business after FTX’s collapse in 2022 since it helps verify that exchanges actually retain the assets they claim to. One of the first exchanges to use the system was Binance, which at first employed conventional cryptography. However, the security and openness of the verification process should be greatly enhanced by its recent upgrade to include zk-SNARKs.
The zk-SNARKs improvement, which was first proposed by Ethereum creator Vitalik Buterin, will offer “greater privacy and security,” according to Binance CEO Changpeng Zhao. He said, “This is a significant advancement in PoR technology. Our open-source PoR system is available to everyone in the business, allowing us to give all users the security they require to enjoy SAFU.
Short for “zero-knowledge,” Zk-SNARKs A cryptographic method called “succinct non-interactive argument of knowledge” enables one party to show another that they have a given quantity of assets without disclosing any additional information. As a result, it is said to be a better method for confirming Binance’s reserves because it enables the exchange to demonstrate the presence of its assets while maintaining the secrecy of important data.
Stay with us for more daily crypto news. Comment your thoughts of these news on our social channels below