The failure of cryptocurrency exchange, FTX led to the creation of the phrase “Proof of Reserve”. Changpeng Zhao (CEO of Binance), stated that all crypto exchanges should have Merkle-tree proofs-of-reserves on November 9. Crypto exchanges shouldn’t be running on fractional reserves like banks. Binance will soon begin to provide proof-of-reserves. Full transparency.”
How Proof Of Reserve Works? CoinGape was the first to publish this article.