World's largest crypto exchange Binance has launched a new website to explain its proof-of-reserves system, and is starting with Bitcoin (BTC) reserves.
The company currently has a 101 per cent reserve ratio. This indicates that it has enough BTCs available to cover every user's balance, reports TechCrunch.
With the new proof-of-reserves website, the crypto exchange company confirmed that its own money is not included in the BTC wallets used in the proof-of-reserves system.
"It is important to note that this does not include Binance's corporate holdings, which are kept on a completely separate ledger," the company was quoted as saying in the report.
Regarding user assets, the business creates a cryptographic seal using a Merkle tree that contains all individual user accounts.
A few weeks ago, the crypto exchange company began by sharing wallet addresses for cryptocurrency assets worth billions of dollars.
Also Read
The company demonstrated with this action that it does own a lot of assets and is capable of processing a ton of withdrawals, the report said.
However, Binance didn't make it clear whether those assets are of users, or of its own balance sheet, or a combination of both.
--IANS
aj/kvd
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)