Cryptocurrency exchange Binance says it has integrated zk-SNARKs verification technology into its Proof-of-Reserves asset verification portal.
On February 10, Binance CEO Changpeng Zhao announced that he has integrated the zk-SNARKs zero-knowledge proof verification mechanism into the Proof-of-Reserves user asset verification system.
Improving transparency is an on-going effort. This new system PoR with zk-SNARK is @VitalikButerin‘s idea (or suggestion). We implement it now. Keep building. https://t.co/ijVVeF7KQl
— CZ Binance (@cz_binance) February 10, 2023
Proof-of-Reserves is an initiative launched by Binance in December 2022, following the collapse of FTX. This is a tool to help Binance users verify if their deposits are being held by the exchange, or have been mixed and used by the exchange for other purposes.
Binance’s Proof-of-Reserves originally used Merkle Tree, a facility that extracts data from the blockchain. However, after receiving feedback about Merkle Tree not guaranteeing user privacy, Binance decided to switch to zk-SNARKs technology.
zk-SNARKs is a zero-knowledge proof encryption solution that essentially guarantees the authenticity of a certain information, but does not reveal what that information is.
And yet, Binance will open source the zk-SNARKs solution for crypto users to view and evaluate the code, ensuring transparency.
In addition, Binance also added 4 new tokens to the list of supporting Proof-of-Reserves verification, bringing the number to 13, including: BTC, ETH, BNB, BUSD, USDT, USDC, XRP, SOL, LINK, TRX , LTC, DOT, SHIB.
Notably, Binance CEO Changpeng Zhao revealed that he was inspired by zk-SNARKs from Ethereum founder Vitalik Buterin’s proposal.