• Blockchain Economy Summit in London is discussing centralized exchanges (CEX)
• OKX Managing Director Lennix Lai is advocating for Proof of Reserve (PoR) technology to increase transparency
• PoR will use Merkle Tree and ZK-Snark technology to verify 1:1 user deposits and transactions
Overview of the Blockchain Economy Summit
London’s Blockchain Economy Summit is the UK’s largest gathering of crypto and blockchain companies. At this event, discussion around the future of CEXs has been taking place in light of the collapse of FTX.
OKX’s Proof of Reserves Technology
OKX has presented their Proof of Reserves (PoR) technology at the summit. This tool uses Merkle Tree data structures to check a user’s assets against on-chain snapshots and can show exactly how much funds are held by an exchange. It also allows for verification that reserves match 1:1 deposits over a period of time.
In 2023, OKX plans to integrate ZK-Snark technology into PoR to make it even more secure and private. This tech bundles multiple transactions together while still verifying the total size without revealing individual details.
This level of transparency increases trust between users, regulators, and exchanges alike which can help with compliance efforts from regulatory agencies worldwide.
Proof of Reserves technology could become standard across most major exchanges with its low cost, high accuracy, and privacy features enabled by ZK-Snark technology. The increased transparency could go a long way towards increasing trust between users, regulators, and CEXs alike.