Following the FTX scandal, the cryptocurrency exchange Bybit recently joined the crypto exchanges in the sector, striving for transparency.
According to a statement from Bybit, the Merkle tree-based Proof-of-Reserve system has been introduced. Users can easily confirm the assets they’ve deposited in Bybit using the system’s Merkle Tree, which also verifies that Bybit has all of the users’ assets in a 1:1 ratio.
According to Bybit:
“As part of our mission to be the Crypto Ark of the world, we spare no effort to ensure next-level reliability. As well as keeping our users’ assets safe and secure, we are also committed to full transparency via our Proof of Reserves (PoR).”
Every user with funds in their funding and trading accounts, including cryptocurrency holdings in Bybit Earn products, is eligible to use the feature. Assets on a number of blockchains, including Ethereum, Arbitrum, BNB Smart Chain, Optimism, Polygon, Avalanche, and TRON, can be verified.
Ben Zhou, co-founder, and CEO of Bybit, stated:
“At Bybit, we believe that transparency and accountability are crucial to building trust in the cryptocurrency industry. Our Proof of Reserves system uses a purpose-built Merkle Tree. The cryptographic solution brings forth a crypto-native, trustless model of providing verifiable evidence of our on-chain holdings and liabilities, and gives our users the reassurance that their funds are safe with us.”
Bybit’s Merkle Tree can securely check the details of the contents of its reserves thanks to the accessibility and transparency that blockchain technology has to offer. Bybit has also completed the wallet ownership verification process and provided detailed instructions on how to independently confirm user assets and the ownership of Bybit’s wallets.
Binance was the first to open up its reserves to public scrutiny and to commit to a Merkle tree-based system, which it later revealed after two weeks.
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