KrakenCEO and co-founder Jesse Powell, Binance’sstated that proof of reserve would be meaningless without obligations.
crypto industry, latest FTX It took a new dimension after the events. One of the largest cryptocurrency exchanges FTX went bankrupt after a major slump. The debris he left behind had consequences that were difficult to recover from. many companies, FTX started to file bankruptcy, citing the events. At the same time, the number of projects experiencing problems with withdrawals has also increased. In light of all these processes, Binance has announced its new proof of reserve. However, this move KrakenIt caught the attention of its CEO.
Kraken CEO Jesse Powell Criticizes Binance Reserve Evidence
KrakenCEO of the stock market Jesse Powell, Binance voiced criticism about the reserve evidence system. These criticisms Binance CEOChangpeng Zhao ( CZ) was quick to respond.
I'm sorry but no. This is not PoR. This is either ignorance or intentional misrepresentation.
The merkle tree is just hand wavey bullshit without an auditor to make sure you didn't include accounts with negative balances. The statement of assets is pointless without liabilities. https://t.co/b5KSr2XKLB
— Jesse Powell (@jespow) November 25, 2022
powellstated that such an application would be meaningless as the exchanges do not include obligations. to PowellAccordingly, it is possible to establish a complete reserve proof system. KrakenIts CEO spoke of a robust proof-of-reserve system in terms of cryptographic proof of client balances and wallet control.
powell, Merkle Tree He underlined that his method would be completely meaningless without an auditor. He stated that this method requires auditing to examine accounts with negative balances.
Responding to these criticisms BinanceCEO CZnoted that a plan is in place that includes third-party auditors to audit the reserve evidence system.
To address questions posed by Jesse P,
In the report 👇, "Upcoming Plans: Involve third-party auditors to audit PoR results", for this PoR result.
I said multiple times publicly, the bottleneck was the auditors has a few weeks wait. We move forward in incremental steps. 1/2 https://t.co/BTNa2rl3XB
— CZ 🔶 Binance (@cz_binance) November 26, 2022
