The Bitcoin exchange OKX updated its Proof-of-Reserves (PoR) procedure by adding support for zero-knowledge zk-STARKs.
⚡️ #OKX Proof of Reserves (PoR) is now powered by zero-knowledge (ZK) proof technology ⚡️
Our April PoR report offers industry-leading privacy protection via zk-STARKs and shows 100% reserve ratios for $BTC, $ETH, $USDT, & 18 additional assets.
Verify: https://t.co/CDPCCaEuWg pic.twitter.com/DonPfh8nn3
— OKX (@okx) April 28, 2023
The new system allows users to independently verify assets while preserving confidentiality. The platform’s liabilities are not disclosed.
The event coincides with the April PoR report.
The latest assessment confirmed 100% reserves for Bitcoin, Ethereum, USDT and 18 other digital assets. The aggregate value of cryptocurrencies that passed PoR this month rose from $8.9 billion to $10.7 billion.
In November 2022, Binance launched PoR among CEXs.
Initially, the company provided information on the coverage of user deposits in the first cryptocurrency. The Binance team Merkle Tree was used to verify on-chain data.
Subsequent initiatives were adopted by Bitget, OKX, Gate.io and Huobi.
Several experts have cast doubt on the effectiveness of such checks, noting that the indicators do not indicate the safety of users’ assets.
In February 2023, Binance implemented a zk-SNARK tool into the PoR system to enhance security and privacy. The use of the technology was proposed by Ethereum co-founder Vitalik Buterin.
As reported in December 2022, a representative of the U.S. SEC urged investors to be ‘very cautious’ about audits of crypto exchange reserves. In his view, such checks do not always reflect the true financial state of the company.
In March 2023, Senators Elizabeth Warren and Ron Wyden called on authorities to take action against ‘fake audits’ of crypto projects.