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Crypto Exchange @okx Releases Proof of Reserve: $BTC, $BTC And $BTC

Today, crypto exchange @okx released its Proof of Reserve (PoR), showing that its BTC, ETH and USDT reserve ratios all exceed 100%. It also launched a series of verification tools.

TokensInsight has tested how can they help to improve assist security in the 🧵👇

1/ What is PoR? It is an audit method used to prove whether the on-chain reserves are sufficient to cover all assets of the user on the exchange. When reserves/asset are ≧💯%, the user assets are safe🛟enough.

2/ Merkel Tree It's used to verify user assets, the info is stored in anonymous snapshots in leaf nodes🍀 and will be aggregated to the root. If the user assets change, it will be reflected in the root node data. It improves the transparency,

but there are still 2 questions🤨:

3.1/ Do all users' assets are recorded by the Merkel tree? Users can manually verify the assets, OKX provides a file containing data on different heights and nodes in the Merkel tree. After verification, "Merkle tree path validation passed" appears, it also shows token balances💵

3.2/ Do all users' assets recorded by the Merkel tree? If we change a few numbers in the data file then verify again, it shows "Merkle tree path validation failed", indicating that the verification fails.

4/ Are the addresses disclosed by the exchange belongs to OKX? OKX shares the crypto type, amount, signature and signs a message with the corresponding private key 🔑when sharing the wallet address. Our test shows that the verification has passed and OKX owns the addresses.

5/ Read the full article at TokenInsight:

Can OKX's PoR Self-Audit Feature Improve Transparency?
This post is based on this twitter thread.


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