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The first exchange to conduct a proof-of-reserve audit in the crypto industry, Gate․io launches its second third-party audit – Press release Bitcoin News
press release
PRESS RELEASE. Gate.io has announced that it will start a new one proof-of-reserve audit to provide user-verifiable backup data through a Merkle tree implementation revised by a leading third-party firm.
In 2020, as the first cryptocurrency exchange in the world to commit to providing 100% security, Gate.io has worked closely with Armanino LLP, a leading US auditing firm, to succeed in providing users with professional and credible asset verification services in an open source, transparent and cryptographically verifiable Merkle tree. The asset verification model was patented by Gate.io in 2020. Performs PoR revisions in this model has become one of the common ones for exchanges to verify asset security, and Gate.io has set a standard for the industry in asset security verification.
Proof-of-reserve revisions in a nutshell
In centralized exchanges, users’ cryptocurrency balances are recorded in a centralized general ledger; we will refer to this as “efficient user reserves.” In addition, we will refer to the actual amount of users’ cryptocurrencies that Oslo Børs stores on the chain as «exchange reserves».
Take Gate.io as an example; when Oslo Børs proves that it has 100% of the reserves confirmed by a qualified auditing firm, it proves that the total amount of foreign exchange reserves is equal to or greater than the effective user reserves.
After the audit is completed, users will be given a method to verify their funds using an open source, transparent and cryptographically verifiable Merkle tree. Essentially, the Merkle tree is a method of encrypting data in a way that cannot be changed, but can be verified. Alternatively, it allows users to reliably interact with the auditor’s findings without disclosing the contents of the data itself.
As a result, Gate.io users can be confident that their assets are safe and available at all times, and regardless of market volatility, their assets are genuinely held and available on the stock exchange.
Tom Yang, Executive Vice President of Gate.io, said: “Gate.io protects user resources at several levels, including legal, regulatory, platform security audits and proof-of-reserves audits. Gate.io has invested millions of dollars in security and legal measures means of protecting users’ assets. “
Take the lead in user trust and platform transparency
Although these revisions have existed since the early years of cryptocurrency exchange, they have not always been carried out with complete transparency and credibility. Early on, stock exchanges self-audited, lacked credible third-party audits, and failed to provide users with an opportunity to verify their assets.
After being developed and used by Gate.io, third-party auditing and the Merkle Tree verification method have been found effective by the market. Stock exchanges can actually prove that the user funds held by the platform are not less than the total amount belonging to the platform users. It not only eliminates user doubts and increases user trust, but also promotes a healthy and stable development of the platform and the industry.
Why provide proof of reserves now?
In a time of market fluctuations and uncertainty, Gate.io takes steps to increase the security of users’ assets and improve confidence in the industry and the market. The exchange has a history of transparent and safe operations and intends to continue operating under these principles.
As one of the top ten cryptocurrency exchanges, Gate.io has a long history of providing secure service in the cryptocurrency industry, and boasts zero active compromises in its nine years of operation. In addition, the platform has taken steps to comply with ethical and transparent operations, clarified by the security history and by setting industry examples for open, transparent and credible proof-of-reserve audits. All of this is linked to the exchange’s commitment to promoting the blockchain industry, presenting itself as a beacon of hope and trust, and offering a top-level platform that crypto investors can rely on.
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