In a context of growing demand for transparency in the crypto ecosystem, Binance, a global leader in blockchain infrastructure and cryptocurrencies, has positioned itself as a benchmark by developing its Proof of Reserves (PoR) system . Launched two years ago, this tool not only seeks to guarantee the security of users' assets, but also to strengthen trust in a market that continues to evolve.
Commitment to transparency and security
From the beginning, Binance’s PoR has been based on a clear principle: all user assets must be backed at least 1:1. This commitment was reaffirmed by Guilherme Nazar, Binance’s Regional Vice President for Latin America:
Additionally, Binance established the SAFU (Secure Asset Fund for Users) in 2018, an additional protection measure that secures users' assets in unexpected situations.
Technological evolution: zk-SNARKs and Merkle trees
Since its launch, Binance PoR has evolved significantly:
Merkle Trees : Initially used to consolidate user asset data, allowing for accurate and transparent verification.
zk-SNARKs : Introduced in 2023, this zero-knowledge proof technology allows full backing of funds to be proven without compromising user privacy.
These innovations allow users to verify their funds in the calculation of the total net balance, while maintaining the security and confidentiality of their information.
Incorporation of loans and advanced methodology
Recently, Binance expanded its PoR system to include:
User Collateral and Loans : Effectively capturing user debts in calculations, reducing potential vulnerabilities.
Open Source : Binance PoR has been developed as an open source project, encouraging community collaboration and allowing for constant improvements.
A standard for the crypto industry
Binance Proof of Reserves is not only a reflection of responsible fund management, but also a step towards the maturity of the crypto ecosystem. Nazar highlighted: