Binance implements ZK-SNARKs with its PoR

On Feb 10, 2023

Binance exchange introduced ZK-SNARKs with the Proof-of-reserves (PoR) so that customers can easily verify the fund holdings behind the exchange.

Binance is a famous Crypto trading service provider platform. Changpeng Zhao (CZ) is the co-founder & CEO of this exchange. For a few years, this exchange has been standing at the first rank in the crypto sector, thanks to the highly secured services of this exchange.

On 10 Feb 2023, Binance exchange announced that its engineers successfully implemented the Zero Knowledge verification method (ZK-SNARKs) in its PoR.

Our team made some upgrades to the #Binance Proof of Reserves (PoR) verification system this week.

🧵 Here’s a thread to summarise the updates. pic.twitter.com/TGFg4Q5WMu
— Binance (@binance) February 10, 2023

Binance CEO CZ confirmed that the team will release the code of this protocol, to remain confident in the Crypto community with the reliability of the code.

3. Product and Service. Plus transparency.

The #Binance Proof of Reserve system has now integrated with zk-SNARK, a zero-knowledge verification method.

It will also be made open source. We hope this would help the entire industry benefit. https://t.co/ijVVeF8iFT
— CZ 🔶 Binance (@cz_binance) February 10, 2023

CZ noted that Merkle tree-based traditional method to give PoR information access to the customers was not safe because any outside actor can take advantage but here Zero Knowledge verification method is better to ensure the privacy of the critical data.

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More privacy and security, this is an important step forward in PoR technology.

Anyone in the industry can take advantage of our open-source PoR system so that we can provide all users with the assurance they need to feel SAFU.

Find the code here: https://t.co/4RLdLaT5GG
— CZ 🔶 Binance (@cz_binance) February 10, 2023

FTX meltdown, Vitalik Buterin & PoR

After the collapse of the FTX crypto exchange in early Nov 2022, Binance exchange proposed the idea of a Proof-of-reserves (PoR) system for all the exchanges as a mandatory step, so that crypto Investors can feel safe in their trading space.

Ethereum co-founder Vitalik Buterin proposed an idea with Coinbase, Kraken & Binance exchange to develop ZK-SNARKs supported protocol to show the PoR of the crypto platforms.

Having a safe CEX: proof of solvency and beyondhttps://t.co/AKEweYZfj2

Big thanks to @balajis and staff from @coinbase @binance @krakenfx for discussion!
— vitalik.eth (@VitalikButerin) November 19, 2022

Popular cointracting website Coinmarketcap also added a special section to show the PoR reporting of the crypto exchanges.