With the aim of assuring users their funds are well safeguarded with transparency, Bitget, one of the leading global cryptocurrency exchanges earlier today announced that it would be launching its Merkle tree proof of reserves page to reassure users it is a ‘’full-reserve exchange.’’
Proof of Reserves is an auditing procedure that is verifiable through cryptographic proofs, checks of public wallet ownership, and recurring audits to certify the holdings of an exchange. Ever since the FTX downfall, this procedure has been the latest method exchanges now use to convince users of how well reserved they are.
Per the press release, Bitget proof of reserves uses a ‘’cryptographic-audited Merkle tree’’ and stores the hash of each user’s account assets in a leaf node on the Merkle tree, allowing each user to verify that their funds are included in the Merkle tree by checking the total amount of users’ assets stored in the Merkle tree leaf nodes.
Prior to the Merkle Tree proof of reserves debut, Bitget had previously published a proof of reserves page explaining to users all the information they might need on PoR including several core elements such as ‘’Merkle Validator.’’
As a way to reassure users assets are well stored, the Snapshots of reserve wallets on the platform demonstrate that assets are held at least at a 1:1 ratio.
Bitget To Further Enhance Transparency Using ‘Merkle Validator’
Still on the topic of users’ assets safeguarding, Bitget will launch a ‘’Merkle Validator,’’ whereby users would be able to self-audit their Bitget account themselves. This will be possible as users’ assets would have a ‘Merkle leaf’ stored under the ‘Merkle data structure.’
That aside, Bitget has also committed to executing regular audits of the proof of reserves in order to verify how up-to-date the balances and the status of user assets within its reserves.
Gracy Chen, Managing Director of Bitget, commented on the PoR topic expressing that Bitget has since been looking to venture into publishing a Merkle tree Proof-of-Reserves even before FTX filed for bankruptcy.
‘’Today, we are proud to fulfill our promise. The release of the Proof of Reserves and the Merkle tree data equips users with updated and informational insights on the financial status of Bitget and enhanced control of their assets stored on the platform, which is echoed in our commitment to maximum transparency and top-notch protection policies for users,’’ said Chen.
So far, Bitget is one of the fastest growing cryptocurrency exchanges with the platform currently serving over 8 million users. Aside from serving as an exchange, the platform is also full of innovative products.
Last month, Bitget introduced a social trading service dubbed “Strategy Plaza.” The unique service offers an option to the consumers to follow various automated strategies for trading along with permitting the system to automatically carry out strategies following the subscription.