OKX POR Anniversary Report: The number of public currencies has increased to 22, and the POR system continues to be iterated
The crypto industry, which was born due to the lack of trust in the traditional financial system, has gradually emerged and triggered peoples thinking and widespread attention around the world. It has grown into a trillion-dollar market so far. However, as an emerging industry without any reference, while the encryption market brings innovation and vitality to the traditional financial market, various emerging black swan events cannot be ignored. Compliance and transparency are becoming the main theme of its future development.
As a leading Web3 technology company and crypto asset platform,OKX always regards the safety of user assets as its first principle and is committed to improving the transparency of platform funds to traditional financial audit requirements, and is becoming the reference standard for industry transparency.
Proof of Reserve (hereinafter referred to as POR) is the key to establishing trust between platforms and regulatory agencies and is crucial to promoting a healthy and sustainable crypto ecosystem. OKX is committed to maintaining a 1:1 reserve ratio, demonstrating its commitment to promoting the healthy growth of the platform and ensuring the accuracy of customer funds and net balance data.
On October 30, OKX released the twelfth reserve certificate report. The reserve rates of 22 public currencies all exceeded 100%. Among them, the reserve rates of BTC, ETH, and USDT were all 103%. The total value of the three reached $12.564 billion.
The release of OKX’s twelfth POR marks a full year since its first POR release at the end of 2022. During this year,OKX insists on releasing POR on a monthly basis, and gradually increases the number of public currencies from 3 to 22. The reserve ratio has exceeded 100% for 12 consecutive months, and has successively passed the Merkle tree, the full-view Merkel tree, and zk- Technologies such as STARK continue to upgrade the POR system and hit multiple milestones.
OKX POR first anniversary milestone event review
Proof of Reserve POR is designed to verify whether user assets are 1:1 reserved on crypto exchanges, i.e. to demonstrate to users their solvency and sufficient liquidity.
OKX is an exchange that simultaneously implements open source verification of Merkle trees, open source verification of wallet address ownership, and open source verification of on-chain assets. It allows users to independently verify their solvency at any time while protecting privacy. Currently, hundreds of thousands of users have participated. Visit the POR page and complete self-verification.
The reserve certificate uses an encrypted proof method to confirm that the digital currency exchange holds a specific amount of assets on a certain blockchain at a specific time, improving the transparency of the users total assets and total exchange deposits without revealing any relevant personal accounts. Sensitive information about balances makes Proof of Reserves a key component of the crypto ecosystem.
The assets used as reserves are digital currencies with strong liquidity and widely accepted by the market. OKX provides reserve certificates for up to 22 currencies, including BTC, ETH, USDT, USDC, XRP, DOGE, SOL, OKB, APT, DASH, DOT, ELF, EOS, ETC, FC, LINK, LTC, OKT , PEOPLE, TON, TRX and UNI.
On the occasion of its first anniversary, the launch of OKX POR has hit several key milestones:
• In November 2022, OKX issued its first reserve certificate and became one of the first mainstream exchanges to issue a reserve certificate.
• In February 2023, the number of users viewing proof of reserves on OKX exceeded 250,000
• In March 2023, OKX improved the transparency of the reserve certificate through the Merkle tree upgrade, making all debt Merkle trees public while protecting user privacy.
• In April 2023, OKX introduced zk-STARK technology into the certificate of reserves, allowing users to independently verify the solvency of the exchange and confirm that their assets are fully protected
• In April 2023, OKX expanded the coverage of reserve proof assets to more than 21 mainstream currencies and released more than 220,000 public wallet addresses
• In September 2023, expert Nic Carter called OKX’s proof of reserves the “highest quality” among mainstream exchanges
• October 2023 marks the one-year anniversary of the release of the OKX Reserve Certificate, and the twelfth OKX Reserve Certificate report has now been released.
OKX Chief Marketing Officer Haider Rafique said: “A series of milestones such as releasing hundreds of thousands of blockchain addresses, introducing zero-knowledge technology to enable trustless verification, and listening to user feedback and upgrading and iterating represent the 12 months of OKX. A huge effort.I want to take this opportunity to encourage you, whether you are an OKX user or not, to take another look at our Proof of Reserves, OKX is setting the standard for trust and transparency in the crypto industry.
OKX verifies user assets through zk-STARK to improve POR transparency
In the past year,OKX has continuously upgraded the POR system through Merkle tree, panoramic Merkel tree, zk-STARK and other technologies. While completing the self-certification of solvency, it also promotes CEX to improve fund transparency, thereby giving users confidence.
Looking back on the OKX POR upgrade process, OKX initially introduced Merkle Tree technology to prove platform assets. Merkle tree is a data structure that can efficiently and securely verify the integrity of data by dividing original data into blocks, hash calculations and building tree structures. It has been widely used in cryptography, data security and many other applications. collar. Merkle tree technology generally requires three core steps: verifying whether the users assets are included in the Merkel tree and the total assets, verifying the ownership of the exchange wallet, and verifying whether the assets of the wallet address published by the exchange are greater than or equal to the users total assets. This proves that the exchange’s asset reserves are sufficient. According to public data,OKX reserve ratio has exceeded 100% for 12 consecutive months.
Although this technology can verify whether a users assets are recorded on the exchange while ensuring the security and privacy of user data, it cannot completely prove that their funds have not been misappropriated. Since then, in order to make up for the shortcomings of Merkle tree technology verification, OKX subsequently upgraded to full-view Merkle tree (Merkle Tree) technology to further enhance the transparency of its reserves. Through this technology, users can download the full-view Merkle tree verification Is the total user assets announced by the exchange correct? In addition, by randomly splitting user data, all user balances are announced while ensuring user privacy. That is, the users complete asset data will not be seen by others.
Thereafter,In order to continuously promote the improvement of industry transparency, OKX once again took the lead in carrying out POR upgrades in less than half a year. By introducing advanced and innovative zero-knowledge proof zk-STARK technology, OKX raised the transparency of exchange assets to the latest level in the industry.zk-STARK, Zero-Knowledge Scalable Transparent Argument of Knowledge, is a secure method to verify data and prove the authenticity of the audit through the zero-knowledge principle and the FRI protocol. In addition, zk-STARK will not disclose specific amounts, values or addresses, thereby protecting user privacy. The zk-STARK proof model mainly imposes three constraints on user-side statistics: summation, non-negativeness, and inclusion. That is, the sum of user asset values is credible, there are no users who forge negative net assets, and users can verify whether the assets are included. , thereby making up for the shortcomings of Merkle tree technology and allowing users to independently verify the solvency of the exchange.
The core role of POR is to prove that the exchanges total reserves > total liabilities (all user assets).Former OKX first used the zk-STARK zero-knowledge proof algorithm to prove and verify all user assets held by the exchange. The ownership of the wallet address on the OKX chain and the total assets of the OKX wallet will then be verified. Finally, the asset reserve rate of the OKX platform is verified by comparing the total assets of exchange users with the total assets in the published wallet addresses on the OKX chain.
At the same time, the wallet assets on the OKX chain are open and transparent, and the public assets are gradually expanded to 20+.With more than 220,000 public wallet addresses, users can verify that their funds are backed by 1:1 real assets at any time, fully promoting the transparency of platform funds.
The zk-STARK technology has been strongly promoted by Vitalik, the founder of Ethereum.He previously stated when participating in forum activities that zk-STARK technology will become as important as blockchain in the next 10-20 years. As a powerful privacy technology, it can not only solve the problems of blockchain applications, but also Bringing better security to users of centralized systems. also,zk-STARK’s technology will also help blockchains balance scalability and privacy.
Transparency becomes the main theme of the future encryption industry
In recent years, traditional banks have exposed the shortcomings of the financial system, and a large number of users have begun to pay attention to and try the encryption industry. Although the encryption industry cannot completely avoid black swan events and systemic risks, looking back on its development history in just a few decades, although the journey has been full of thorns and twists and turns, it has shown great financial technology innovation and imagination. It has derived many applications such as DeFi, NFT, DAO, Web3 and so on.
And under the leadership of Web3 technology companies represented by OKX, they are constantly promoting the improvement of industry transparency and the establishment of standards. Through continuous technological innovation, they ensure the security of user assets and help the industry develop for the better.
In addition to transparency in CEX, OKX continues to promote decentralized business development. For example, as a one-stop Web3 portal, OKX Web3 wallet now supports 70+ public chains, covering 5 major sectors: wallet, DEX, DeFi, NFT market, and DApp exploration, and supports Ordinals market, MPC and AA smart contract wallets, and gas exchange , connect to hardware wallets, etc., bringing users a convenient and safe experience.
As a leading crypto asset platform and Web3 technology company, OKX always maintains a 1:1 reserve for user assets and publishes reserve certification reports every month, setting higher standards for the encryption industry and proving its commitment to users with actions. promise.
Perhaps, the current POR is not perfect, but it is necessary.
