Binance added zk-SNARK, a zero-knowledge verification mechanism, to its Proof of Reserves (PoR) system on Friday to protect sensitive data.
Additionally, the company integrated four new crypto tokens into the PoR system. These tokens are denoted by the symbols SHIB, SOL, DOT, and CHZ.
What Is zk-SNARK?
Binance improved its Proof of Reserves (PoR) Verification System by integrating zk-SNARK, a zero-knowledge verification method. According to an announcement made by the cryptocurrency exchange, the integration of zk-SNARK was designed to improve the confidentiality and safety of sensitive information.
In addition, Proof-of-Reserve trading has been enabled for the following four new cryptocurrencies on Binance: SHIB, DOT, SOL, and CHZ.
The word zk-SNARK refers to a technique that enables one party to prove to another party that a statement is true without giving any more information beyond the statement itself. This makes the zk-SNARK mechanism particularly useful in situations where confidentiality must be maintained.
Binance has claimed that this is the first time it has included zk-SNARK, and the business is looking forward to collecting views from the community regarding the newly added functionality. zk-SNARK was developed by the Bitcoin Privacy Working Group.
The company also has the intention of making the source code of the system publicly available, which will both raise the level of openness and make it possible for other market participants to utilize the technology.
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Binance To Add More Crypto Tokens To PoR
This is the most recent improvement that has been made to the Proof-of-Residence (PoR) mechanism that is utilized by Binance. The cryptocurrency exchange also anticipates the addition of other tokens in the weeks to come.
There are now a total of thirteen verified assets available for trading on Binance after the addition of four new tokens.
As a direct response to the failure of the FTX, the largest cryptocurrency exchange in the world launched its Proof-of-Residence (PoR) system in November 2022. This was done in order to ensure complete transparency regarding user assets.
In a nutshell, the purpose of the approach is to provide evidence that Binance maintains user funds in the identical tokens that were initially placed by the user.
The FTX debacle, which caused at least $20.7 billion worth of cryptocurrencies to be removed from various exchanges, triggered calls for increased openness in the cryptocurrency business.
This placed Proof of Reserves (PoR) into the spotlight, despite the fact that some people believe the system is only a first step because it does not demonstrate an exchange’s total financial health. Nevertheless, this propelled PoR into the spotlight.
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