An attestation that a custodian holds at least as much of an asset as it owes to customers. Modern PoR uses a Merkle tree of customer balances so any user can verify their account is included in the total. PoR addresses the failure mode FTX exhibited (using customer funds for proprietary trading). It does not address all custodial risks. See our coverage.
Proof of Reserves
An attestation that a custodian holds at least as much of an asset as it owes to customers. Modern PoR uses a Merkle tree of customer balances so any user can verify their account is included in the total. PoR addresses the failure mode FTX exhibited (using customer funds for proprietary trading). It does not address all custodial risks. See our coverage.
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