Arnaud SAINT-MARTIN
@anou91
What is Proof of Reserves? Proof of Reserves (PoR) is a verification method used by cryptocurrency platforms (such as exchanges and custodians) to demonstrate that they have sufficient reserves to cover customer assets. The goal of PoR is to improve transparency and build user trust in platforms. Key aspects of Proof of Reserves: šµ Asset Verification ā āāPlatforms publish data showing that the assets in their reserves are equal to or greater than their obligations to customers. ā This is demonstrated by cryptographic proofs, such as the Merkle Tree. šµ Third-party Auditing ā To build trust, the auditing process is often performed by independent auditors who verify and confirm the platformās data. šµ Merkle Tree ā A Merkle Tree is a cryptographic structure that allows users to verify that their balance is included in the platformās total assets, without disclosing other usersā data. šµ Openness and Transparency ā Using PoR allows platforms to show that they are not taking ā¦
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Arnaud SAINT-MARTIN
@anou91
Part 2: Proof of Reserves Benefits: šµ Trust Building: Users can trust that the platform has sufficient reserves to meet its obligations. šµ Risk Reduction: Transparency helps prevent sudden bankruptcies, as has been the case for some exchanges. šµ User Attraction: Platforms with PoR attract customers who value security and transparency. šµ Demonstration of Trustworthiness: For institutional and retail customers, PoR confirms that their funds are safe. CryptoFam #Crypto #cryptofam
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Anuoluwapo Bello
@anubello1
Gm gm my Fren. Have a great day.
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Ali
@aliozdemir
Good morning my fren š
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