Major Crypto Exchanges okx said it has launched a self-audit feature, which currently supports three cryptosets.
“You can now verify that your asset is backed 1:1 on OKX,” Told the announcement. supports new feature bitcoin (btc), Ethereum (ETH)And this usdt With the stable currency, more assets to come, the company said.
Website offers Users can also choose to view their audits as well as OKEx Reserves. It claimed that its on-chain wallet holdings are public so that users can always verify that their funds are backed by real assets.
It also said it regularly publishes proof-of-reserve (PoR) audits, to help users verify that their assets are held in the exchange’s reserves.
OKX said that Proof of Reserves is a common audit method used to ensure that a custodian actually holds sufficient funds to cover all assets held on its exchange. To verify an audit, three steps go through:
- One merkle tree is used, which is a data structure designed to encrypt data to verify all User Assets held on the Exchange;
- Exchange ownership of OKX on-chain wallet addresses and total OKX wallet holdings are verified;
- The exchange’s reserve ratio is verified by comparing total user asset holdings from OKEx on-chain wallet addresses.
OKEx states that each user is assigned a unique anonymous user hash ID, and the balance of each user’s total assets becomes a Merkle leaf in the tree.
“The sum total of all our user’s assets is combined to form a “Merkle Root”, a cryptographic signature that represents all user holdings.”
The exchange also said it published a list of wallet addresses with the signature message “I am an OKEx address” where users can verify their OKEx assets stored on-chain.
The website also gives instructions on how to self-verify PoR: how to verify the ownership and balance of an OKEx wallet address, as well as how to check whether one’s assets are included in the OKEx Merkle tree.
as informed ofMany exchanges have turned to PoR after the collapse of ftx Exchange, joining companies that are already conducting these audits.
There are some, however, who argue that some types of PoR are not sufficient. Jesse Powell, co-founder and former CEO of crypto exchange Kraken, Told He will be “more assertive” when it comes to “sweeping out problems”.
He tweeted that PoR audits require cryptographic proof of client balances and wallet control, and must:
- the sum of customer liabilities (the auditor should exclude negative balances);
- user-verifiable cryptographic proof that each account was included in the total;
- The signature proves that the custodian has control of the wallet.
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learn more:
, OKX Exchange shows proof of store
, Binance provides proof of reserves in response to FTX collapse – this is how much money they have
, Billion-dollar crypto fund Grayscale refuses to post proof-of-reserves – next firm to collapse?
, OKX Attracts More Institutions With New Trading Feature
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