According to Binance news, Binance celebrated the second anniversary of the launch of its Proof of Reserves (PoR) system. The system aims to increase the transparency of user assets and ensure that all user assets are always backed by at least 1:1. The reserves cover 34 tokens and more than $120 billion in assets.
Since its launch in 2022, PoR has become a standard tool for centralized trading platforms to fulfill user responsibilities, building and maintaining trust in the crypto asset ecosystem. Binance continues to improve PoR technology, combining advanced protocols such as zk-SNARKs to transparently capture debts and liabilities, allowing users to more clearly understand their debt collateral information.
Two years ago, in response to the trust crisis in the industry, Binance launched the first generation of PoR system, becoming one of the first trading platforms in the world to support user asset transparency and publicly disclose proof of user asset custody, indicating that Binance has always been committed to providing sufficient reserve support for user assets at a ratio of at least 1:1.
Today, maintaining a PoR system has become a must-have requirement for any responsible centralized exchange. Safely storing and maintaining user assets on a 1:1 basis is essential to building and maintaining trust. As the industry continues to mature and crypto assets become more popular than ever before, Binance's PoR system has made significant progress over the past two years, demonstrating its uniqueness.