Binance Improves Transparency with Zero-Knowledge Proofs

Twitter icon  •  Published hace 1 año  •  Hassan Maishera

Over the weekend, Binance released a form of zk-SNARKs, zero-knowledge proof, to improve the transparency of their finances and liquidity.

Over the weekend, Binance released a form of zk-SNARKs, zero-knowledge proof, to improve the transparency of their finances and liquidity.  

Binance is the world’s largest cryptocurrency exchange as measured by daily trading volume, according to Coin Market Cap. Read more about this exchange in our complete Binance review. They first launched their Proof-of-Reserves in November 2022 using Merkle Tree cryptography. 

Last year, major cryptocurrency exchange FTX collapsed, causing fears throughout the crypto market. Many exchanges, including Binance, began showing transparency in order to calm investors. Cryptocurrencies then entered into a bull market at the beginning of 2023. 

zk-SNARKs allow users to verify that all user accounts are not net-negative and that all user assets are part of what Binance claims in its total net balance. 

Binance concluded the Friday, February 10th announcement promising even greater transparency, with hopes of pushing the entire industry to new levels of transparency. 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.