Binance Deploys zk-SNARKs Technology for Proof-of-Reserves

Cryptocurrency exchange Binance says it has integrated zk-SNARKs verification technology into its Proof-of-Reserves asset verification portal.

Binance Deploys zk-SNARKs Technology for Proof-of-Reserves

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.

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.

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