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HomeCryptoGate.io to Upgrade Proof of Reserves Method with Zero-Knowledge Technology

Gate.io to Upgrade Proof of Reserves Method with Zero-Knowledge Technology

MAJURO, Marshall Islands, Aug. 18, 2023 /PRNewswire/ — Gate.io, a leading cryptocurrency exchange, announces its plan to upgrade its Proof of Reserves (PoR) guarantees by integrating zero-knowledge (ZK) proof technology. This innovation is expected to bolster the privacy and security of users’ asset verification processes during PoR validation.

A Pioneer in Proof of Reserve

Cryptocurrency exchanges have long grappled with concerns over the misappropriation of user deposits, a risk that can trigger fund losses, insolvency, and even bank run-like scenarios.

Gate.io, a pioneer in the realm of reserve guarantees, became the first mainstream exchange to introduce third-party audited Proof of Reserves using the Merkle tree methodology in 2020. This method enabled users to independently verify that their account balance was included and assessed by a licensed external accounting firm.

Gate.io’s commitment to transparency and user empowerment was reaffirmed in 2022 when the PoR process was replicated, revealing reserves exceeding user deposits with 108% of BTC and 104% of ETH deposits securely maintained in the exchange’s reserves. Striding toward enhancing industry-wide trust, Gate.io made its PoR method open source, inviting fellow digital asset platforms to participate in producing verifiable PoR data.

The next evolution of PoR

This pursuit of innovation continues as Gate.io embarks on the next phase of PoR evolution. The exchange, which currently employs Merkle tree data structures in its PoR method, is set to embrace zero-knowledge proof tech for users’ asset verification, which provides additional security and privacy when conducting PoR.

By implementing zero-knowledge tech, which enables data verification without revealing specific information, users are afforded a more central role in verifying their assets are held in reserve. In addition, this shows Gate.io’s larger commitment to increasing confidence in the digital asset space, alongside other efforts such as sharing PoR methods publicly and supporting peers through the industry support fund.

“Gate.io’s efforts in security, transparency, and user trust within the digital asset landscape define our role in shaping cryptocurrency exchanges. By embracing cutting-edge zero-knowledge proof tech and empowering users, Gate.io aims to foster enhanced security and trust — a new industry standard,” said Dr. Lin Han, Founder and CEO of Gate.io.

SOURCE Gate.io

Originally published at https://www.prnewswire.com/news-releases/gateio-to-upgrade-proof-of-reserves-method-with-zero-knowledge-technology-301904517.html
Images courtesy of https://pixabay.com

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