Key Points:
- OKX released the 8th Proof of Reserve report with over 100% reserve ratio for 22 coins, totaling $11.3 billion.
- The exchange aims for traditional financial audit-level transparency and issues monthly reserve certificates.
- Enhanced PoR system with zk-STARK enables independent solvency verification by users.
OKX, the second largest offshore cryptocurrency exchange, officially released the 8th Proof of Reserve (PoR).
According to reports, OKX is dedicated to improving the transparency of PoR to the traditional financial audit level in order to maintain its position as the industry leader in security and transparency.
It is one of the industry’s few major encryption exchanges that issue reserve certificates on a monthly basis.
The recent reserve ratio of 22 publicly traded coins all topped 100%, with BTC, ETH, and USDT all at 103% and a total value of $11.3 billion.
OKX Global Chief Commercial Officer Lennix Lai stated:
“Security, transparency and trust are the core tenets of OKX’s operating philosophy. That’s why we’re committed to operating with complete transparency and providing regular PoR audits that users can independently verify. We hope that our efforts will raise the overall standard of the digital asset industry and establish new benchmarks for transparency and security.”
Proof of reserves (PoR) is the process of confirming that the customer assets held by a cryptocurrency exchange or financial institution match the number of assets kept in reserve on the customers’ behalf. PoR has been widely publicized as the major method for crypto investors to ensure that their assets are properly safeguarded. It’s also a crucial tool for crypto platforms since it allows them to demonstrate that they have enough assets to support transactions and withdrawals.
The bankruptcy of FTX and the dissolution of Three Arrows Capital both stunned the cryptocurrency sector. They called into doubt the dependability and integrity of cryptocurrency custodians.
A PoR audit shows that the company’s on-chain holdings are equal to the client assets recorded on the balance sheet, reassuring consumers that the business is viable and liquid enough to continue doing business with them.
PoR is often carried out by a third-party auditor who examines a trading platform’s assets and liabilities. The auditors want to validate the exchange’s assertions and will then publish the findings for public consumption. This theory assumes that the exchange’s digital assets kept in custody for users are backed up 1:1 by exchange-owned reserves.
At the moment, OKX’s PoR system has been improved using zk-STARK and other cutting-edge technology, and users may independently check OKX’s solvency at any time.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
Coincu News
Source: https://coincu.com/198390-okx-released-the-8th-por/