Users will now be able to independently validate that their assets are backed by reserves.
The approach ensures the legitimacy of OKX’s PoR without compromising user anonymity.
The Proof of Reserves (PoR) system at OKX, the world’s second-largest crypto exchange by trading volume and a leading Web3 technology business, has taken a major step forward.
Users will now be able to independently validate that their assets are backed by OKX reserves. Thanks to the exchange’s incorporation of zk-STARK zero-knowledge technology. There was a 39% gain in Bitcoin, Ethereum, and USDT from January 2023 to the most recent PoR report, which showed a total of USD 10.4 billion.
Without Compromising User Anonymity
OKX’s PoR system has been significantly improved with the introduction of Zero-Knowledge Scalable Transparent Argument of Knowledge (zk-STARK).
Moreover, this cutting-edge cryptographic approach ensures the legitimacy of OKX’s PoR without compromising user anonymity. OKX customers may rest certain that their funds are safe and private, since no outsiders can see their account balances.
To guarantee that cryptocurrency exchanges have sufficient assets to cover consumer deposits, proof-of-reserve (PoR) is an essential part of the ecosystem around these markets. PoR audits have always been labor-intensive, error-prone, and performed manually. By automating and simplifying the PoR procedure, zk-STARK technology provides a revolutionary answer to this problem.
Lennix Lai, Chief Commercial Officer at OKX, stated:
“Proof of Reserves is an indispensable way to demonstrate transparency and guarantee solvency, and builds user confidence and trust in the industry as a whole. OKX is committed to leading the crypto space when it comes to empowering users to verify reserves and liabilities in real-time using trustless ‘future tools’ like Proof of Reserves.”
OKX’s reserve ratios of 103% for BTC, 103% for ETH, and 103% for USDT demonstrate a high degree of solvency. Moreover, the exchange has also increased the number of crypto assets that may be verified by the public from 11 to 21, thanks to its coverage expansion.