Binance, the world’s largest crypto exchange, has recently added 11 new cryptocurrencies to its Proof-of-Reserves (PoR) system, bringing the total to 24 different assets. These new tokens include popular options such as Dogecoin, Curve DAO Token, and 1inch, among others. With the latest update, the crypto-based exchange reports that its PoR system now holds more than $63 billion in assets across its supported cryptocurrencies.
Boost customer confidence regarding the asset’s security
One notable aspect of Binance‘s PoR system is that it retains a 1:1 reserve ratio for all customer funds, in addition to holding extra reserves. According to a crypto-based exchange company, this provides customers with the confidence that their assets are safe and secure on the exchange.
The PoR system also reveals reserve ratios for each supported cryptocurrency. As of the latest update, USD Coin (USDC) had the highest reserve ratio at 5490.54%, with Binance retaining $3.55 billion worth of USDC and users having a net balance of $64.7 million in assets. Binance USD (BUSD) came in second with a reserve ratio of 128.81%, while Binance’s native token, BNB, came in third at 123.85%.
Binance Introduces ZK-SNARKs for PoR
In February 2023, The exchange announced a significant upgrade to its PoR system by incorporating ZK-SNARKs. This is a zero-knowledge proof technology that allows Binance to verify that it holds the assets it claims to hold without revealing specific details about those assets.
The addition of ZK-SNARKs enhances the privacy and security of user data during the verification process. By implementing this technology, the exchange further cements its commitment to ensuring the safety and security of customer assets on its platform.
The Impact on Binance’s Native Token, BNB
Following the announcement of the ZK-SNARK upgrade, the price of BNB has fluctuated. Currently, BNB is trading at $288, representing a slight gain of 0.01% over the past 24 hours. However, over the last seven days, BNB has experienced a drop of 4.73%.
Despite the recent price fluctuations, Binance’s continued efforts to enhance its PoR system and ensure the security of customer assets bode well for the long-term viability of its platform and the popularity of its native token, BNB.
The addition of new cryptocurrencies to Binance’s PoR system and the incorporation of ZK-SNARKs technology further strengthens the exchange’s reputation as a secure and reliable platform for cryptocurrency traders and investors. With over $63 billion spread across 24 different assets, the PoR system provides users with confidence that their assets are held 1:1 in the exchange’s custody.
Enhanced POR System
As a result, the continued development and enhancement of the PoR system are likely to attract more traders and investors to Binance’s platform, which will have a positive impact on the exchange’s native token, BNB. Binance’s commitment to enhancing security and privacy through the integration of new technologies demonstrates the exchange’s long-term vision and commitment to providing its users with the best possible experience.
While the recent price fluctuations of BNB may cause concern for some investors, it is important to note that the cryptocurrency market is highly volatile and subject to sudden price swings. As such, investors should focus on the underlying fundamentals of Binance’s platform and the potential for future growth, rather than short-term price movements.
Conclusion
Binance’s PoR system expansion to 24 different cryptocurrencies, combined with its 1:1 reserve ratio for all customer funds, provides users with a high level of confidence in the security and safety of their assets on the platform. The addition of ZK-SNARKs further strengthens this commitment to security and privacy, positioning Binance as a leader in the cryptocurrency space. The impact of these developments on Binance’s native token, BNB, remains to be seen, but the exchange’s dedication to improving its PoR system is likely to have a positive long-term effect on the token’s value.
Source: https://www.cryptopolitan.com/binance-adds-11-new-tokens/