OKX Announces Zero Knowledge Proof Solvency Verification, Full Liability Tree Disclosure Upgrades to Proof of Reserves

OKX, the world’s second-largest crypto exchange by trading volume and a leading Web3 technology company, announced it will upgrade its industry-leading Proof of Reserves (PoR) in the coming months to include full liability tree disclosure and zero-knowledge proofs (ZKP) for PoR solvency verification.

The upgrades build upon OKX’s current Merkle tree solution to ensure maximum transparency while enhancing customer privacy:

• Full liability tree: This upgrade, effective in the upcoming March PoR report, will enhance transparency by allowing anyone to download the full liability Merkle tree. At the same time, it will maintain privacy regarding account balances by splitting and shuffling every user’s balance into several segments (splitting leaf nodes).
• Zero-knowledge proofs: This upgrade, effective in the coming months, is a tamper-proof cryptographic method that allows users to verify all client deposits are accounted for and guarantees solvency by comparing net equity of user assets to exchange reserves.

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Haider Rafique, Chief Marketing Officer at OKX, said: “Proof of Reserves is essential to earning user trust, and we’re committed to constant innovation to exceed market expectations for transparency. This is reflective of how we approach everything that we do at OKX, and we’re grateful for the positive feedback from customers and the broader crypto community so far.”

OKX set the industry standard with its monthly publications of its PoR since November, with the most recent showing USD8.6 billion held by the exchange in BTC, ETH and USDT. OKX’s next monthly PoR publication will take place on or around the 20th of March.

OKX has published tens of thousands of addresses for its Merkle tree PoR program, and will continue to use these addresses to allow the public to view asset flows. The OKX PoR protocol is open source and available to the public on Github. Additional OKX holdings can be viewed on the OKX Nansen Dashboard.

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