Binance will use zk-SNARKs as a Proof of Concept, allowing exchanges to prove they have reserves without having to provide details of what those reserves are.
Earlier, Binance revealed that it will introduce zk-SNARKs to exchanges’ capital verification systems, making it easier for users and other organizations to verify exchanges that may face bankruptcy. There are also four new riptos in the PoR system.
Since the FTX incident that has destabilized the crypto market, As Investor Confidence In The Crypto Market Drops, Binance Seeks Ways To Restore The Exchange’s Trust
Binance was one of the first exchanges to launch a crypto exchange proof of funds feature. It initially rolled out the Merkle Tree feature, however, the company said the feature had a few issues. Especially in terms of privacy of users mainly.
Binance decided to upgrade its PoR system by adopting the zk-SNARKs concept of Ethereum co-founder Vitalik Buterin. Who want to prove the reserves of crypto exchanges can do this without revealing what those reserves are.
Binance adds that it has made its PoR system open source in order to create more transparency.
Binance’s PoR feature currently counts 13 cryptocurrencies supported, and four more will be added after the zk-SNARKs are implemented.
source LINK