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Proof of Reserves (PoR) Explained

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This year (2022) has been difficult for the crypto space, considering the bearish streak cryptocurrencies have been stuck in. Following the recent collapse of the FTX exchange, the uncertainty and strain have further increased, causing many to question the financial stability and security of various exchanges.

Amidst this commotion, Proof of Reserves (PoR) has quickly drawn the spotlight to itself.

As many crypto enthusiasts anticipate, PoR might be the next best thing to strengthen the exchange-user dynamic and more. However, since this is a new concept, it is crucial to get familiar with what it is and the possible difference it can bring forth in the crypto space.

You can get a better understanding of Proof of Reserves through the details mentioned below.

What is Proof of Reserves (PoR)?

Proof of Reserves (PoR), as the term suggests, is an independent audit or a background check of a cryptocurrency exchange. This is conducted by a third-party auditor and is carried out to ensure that the crypto exchange is financially stable. According to the audit, the platform needs to have a total amount that is either equal to or greater than the total balance of what the clients own.

This is an essential verification technique that not only validates the transparency but the security of exchange as well.

PoR is a good way for crypto investors to be sure that the balance they hold on an exchange is supported by real assets.

How Does Proof of Reserves (PoR) Work?

PoR is an advanced cryptographic accounting procedure. The structure used to conduct the audit is called a Merkle Tree. With the help of this procedure, bigger pieces of data are broken down into smaller chunks, which makes it faster and more efficient to analyze the data.

In this article, we will take a look at some benefits of Proof of Reserves and how it improves the transparency of an exchange.

Why Proof of Reserves (PoR) is Important?

Considering the recent situations in the crypto space, PoR has become essential to implement. More and more exchanges are committing to it as it not only improves the transparency and quality of an exchange’s services but is also an additional layer of security against the risks one might face.

PoR is a technique that benefits both users and exchanges. By conducting the audit, the users can get a good idea of the cryptocurrency reserves, while, the crypto exchanges can strengthen their reputation and gain the trust of their users.

PoR is also a beneficial tool for regulators as well. The reason is that this self-regulating measure corresponds with the overall vision the regulators have for the crypto industry.

In other words, Proof of Reserves offers such a solution that is appealing and advantageous for all involved parties, crypto investors, exchanges and governments alike.

Key Takeaways on PoR!

Opting for an exchange that prioritizes the security of the user’s funds and information is crucial. There are several risks and uncertainties that can make the overall experience of buying or trading crypto stressful. This is where the Proof of Reserves comes in, which is an advanced technique anticipated to offer higher security to the users. As the number of exchanges committing to PoR is increasing, this might become a standard practice in the future. In the meantime, it is important that you carefully opt for an exchange and explore the safest ways to store your funds.

If you are interested in trading crypto then Bybit is a good and secure exchange you can opt for. Margin traders can trade Bitcoin and Ethereum with up to 100x leverage on Bybit. Use this link to sign up and earn a free bonus on your initial deposit.

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Cryptegrity DAO (ESCROW) is Now Available for Trading on Hotbit

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Cryptegrity DAO (ESCROW) is Now Available for Trading on Hotbit

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Hotbit Exchange, a global crypto trading platform, officially listed $ESCROW (Cryptegrity DAO) on January 27, 2023. The ESCROW/USDT trading pair is now available for all users of Hotbit Exchange.

To increase trust and protect the funds of buyers and sellers, Cryptegrity DAO (ESCROW) has introduced a means to trade crypto for goods and services without fear of theft or services not rendered, providing Security via smart contract technology. Its native token $ESCROW has been listed on Hotbit Exchange at 07:00 AM UTC on January 27, 2023, to expand its global reach further and maintain a secure and reliable platform for the exchange of goods and services using crypto.

INTRODUCING CRYPTEGRITY DAO

Cryptegrity is a blockchain-based platform that aims to increase trust between buyers and sellers of goods and services. The platform utilizes smart contract technology and cryptographic techniques to ensure transactions’ integrity and funds’ security. 

Cryptegrity’s web3 platform offers transparency and peace of mind that is impossible with traditional web2 competitors. Buyer funds are locked in an audited smart contract and released to the seller only when goods are received or services are rendered. This ensures that buyers and sellers can have confidence in the security of their transactions and reduces counterparty risk.

25% of revenue is distributed to $Escrow holders in real-time through smart contract technology. This revenue sharing continues for the lifespan of the platform or until all tokens are repurchased from public circulation. The Cryptegrity platform incentivizes the community and holders to help create liquidity and earn rewards by offering $Escrow for creating $Escrow LP pairs and staking them. Additionally, the Cryptegrity DAO rewards participants for contributing and resolving issues on the platform.

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In conclusion, Cryptegrity is an innovative platform changing our thoughts about online identity verification. With its cutting-edge technology, user-friendly interface, and listing on Hotbit, this project is poised to make a big impact in the industry.  

About $ESCROW Token

The Escrow Token serves dual purposes: it distributes platform fees to Token holders via revenue sharing and functions as a governance token with voting rights in the Cryptegrity DAO. It is the native token of the Cryptegrity Platform and is built on the Bep-20 and Erc-20 standards.

ESCROW has a total supply of 100 million tokens, with the following allocation: 10% to founders, 10% to the team, 10% for marketing and development, 10% for promotions, 10% for partnerships, 10% for liquidity for future DEX and CEX, and 40% available for sale to the public.

The ESCROW token is now available for trading on Hotbit Exchange starting at 07:00 AM UTC on January 27, 2023. Investors can easily buy and sell the token in relation to the Cryptegrity Project. The listing on Hotbit Exchange will aid in expanding the project’s reach and increasing market attention.

ABOUT HOTBIT

Founded in 2018 and holding Estonian MTR license, American MSB license, Australian AUSTRAC license, and Canadian MSB license, Hotbit cryptocurrency exchange is known as a leading trading platform that continues to develop and integrate various forms of businesses such as spot trading, financial derivatives, cryptocurrency investment and DAPP into one platform. Hotbit has already gained over 8 Million registered users from more than 210 countries and regions. Based on its globalized and unified strategies, Hotbit continues to focus on world’s emerging markets, such as Russia, Turkey and Southeast Asia markets and was ranked one of the top 3 most welcomed exchanges by Russian media in 2019. Hotbit is constantly introducing and listing high-quality crypto projects so its users can directly trade, manage, track, and analyze cryptocurrencies, making the entire experience easier for ordinary people.

Start Trading Now: Hotbit.io

Telegram: https://t.me/Hotbit_English 

Twitter: https://twitter.com/Hotbit_news


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Centralized Exchange Tokens Post Solid Gains in January Despite SEC Interest; Bitcoin, Ether, in the Red.

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Centralized Exchange Tokens Post Solid Gains in January Despite SEC Interest; Bitcoin, Ether, in the Red.


“If demand for trading on the FTX platform increased, demand for the FTT token could increase, such that any price increase in FTT would benefit holders of FTT equally and in direct proportion to their FTT holdings,” the SEC wrote in its complaint. “The large allocation of tokens to FTX incentivized the FTX management team to take steps to attract more users onto the trading platform and, therefore, increase demand for, and increase the trading price of, the FTT token.”


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Australian Government Flagged FTX Concerns Eight Months Before Downfall

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Australian Government Flagged FTX Concerns Eight Months Before Downfall

A new report shows that the fallen crypto exchange FTX had already caused concerns with the Australian regulator months before its collapse. According to a document on The Guardian Australia’s website, the ASIC (Australian Securities and Investments Commission) started investigating the firm’s local operation last March.

An article in the Australian Financial Review prompted the concerns. The article outlined the now-bankrupt exchange’s plans to launch in Australia within a few weeks. FTX caused more concerns when rumors that it would allow users to purchase cryptocurrencies with margin loans of 30 times their investment started making rounds.

In early April 2022, several Australian regulators held meetings with FTX leadership, and at that time, the exchange promised to operate under the stipulated while cautioning its customers about potential scams. However, the regulators somehow remained concerned about the FTX business.

Report Shows ASIC Issued Several Notices to FTX Australia Within a Few Months

In a span of four months, the ASIC had issued about four notices to FTX’s Australian subsidiary, requesting more information about its business operations. However, to avoid interfering with its law enforcement activities, ASIC did not issue the notices via a freedom of information request.

The Guardian Australia’s briefing document released on November 12, 2022, a day after FTX had filed for bankruptcy, indicates that, indeed, the ASIC had been carrying out what’s described in the document as a ‘surveillance activity’ on the fallen exchange since last March.

The document stated that since March 2022, the Australian regulator has been requesting information from FTX Australia regarding its financial offerings. Among the issues raised included the firm’s compliance with the ASIC’s product intervention order alongside pricing and how it registered new users.

FTX Licensing Strategy

It has been discovered that FTX Australian began its operations without ASIC’s approval because it evaded the usual licensing procedures by buying out an existing firm that had possessed an Australian Financial Services License since 2021.

Another revelation shows that IFS Markets, the company acquired by FTX, had also gotten the license by taking over another financial firm called Forex Financial Services a few months earlier.


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