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