Latest crypto, Bitcoin, BNB, Blockchain, NFTs, and Altcoin trends and happenings.

Binance’s CZ Has Announced His Answer Regarding The Proof of Reserve!

0

Binance’s CZ has announced his answer regarding the Proof of Reserve! Binance CEO “CZ” answers questions about proof of reserves and shows how Binance manages customers’ crypto assets.

After some crypto leaders said that Binance’s “proof of reserves” is useless, Binance CEO Changpeng “CZ” Zhao said that Merkle Tree’s proof of deposit is a “good proof”. On Saturday, Binance’s CEO explained in a blog post how money is managed on Binance to ensure full transparency and security of customers’ crypto assets.

Binance President “CZ” Responds to Wallet Insights

In a November 26 blog post, Binance CEO “CZ” answered questions from the community about how Binance manages funds and wallets. It claims that Binance is committed to full compliance with laws and regulations and does not use customer funds in its own accounts. Binance holds clients’ crypto assets in separate accounts. These are very different from the accounts Binance uses to hold its crypto assets. Additionally, the crypto exchange uses the same wallet infrastructure to store user assets as well as Binance crypto assets.

User deposits are transferred to the wallet, and Binance periodically transfers these coins to the hot or cold wallet depending on the transaction amount. This helps reduce the number of trades and keeps gas prices low, ultimately passing these savings on to customers by keeping trade costs low in the industry.

Binance maintains a balance in an active wallet to manage deposits and withdrawals. However, large deposits and withdrawals are controlled by small wallets. In addition, each client has a unique identifier (UID) and associated login credentials, which helps distinguish the client’s crypto assets from Binance assets. In addition, Binance has started working on various crypto-asset trading wallets to comply with MiCA regulations. It also uses its own wallet facilities to store customer assets.

  • “Creating a self-sufficient ecosystem has shielded Binance customers from being exposed to the types of contagion risk we have seen with the implosions of other industry players like Celsius, Voyager, and now FTX.”

Is Merkle Tree Proof of Reserves the best way to verify assets?

Kraken’s CEO Jesse Powell called the proof of Binance’s reservation “useless” because the exchanges do not include unaudited fees. Binance CEO believes that Merkle Tree proof of reserves is the best way to verify crypto assets.

He responded to Jesse Powell’s question by stating that third-party auditors will be involved in demonstrating the security of Binance.

  • “I said multiple times publicly, the bottleneck was the auditors has a few weeks wait. We move forward in incremental steps.”

Telegram address.

Leave A Reply

Your email address will not be published.