Binance’s Proof of Reserves (PoR) report, which is one of the world’s leading and largest cryptocurrency exchanges, has been updated to include 11 new assets. MASK, ENJ, WRX, GRT, CHR, CRV, 1INCH, CVP, HFT, SSV, and DOGE are the tokens that are accounted for in the Proof of Reserves report. With this most recent update, the total number of assets on the Binance PoR system increased to 24, with a combined value of over $63 billion.

The Proof of Reserves (PoR) mechanism that Binance has developed aims to provide its clients with transparency and certainty about the custody of their funds. Binance claims that its Proof of Reserves (PoR) uses Merkle trees to aggregate the data that is stored on-chain. This helps ensure that client assets are retained for them on an individual basis.

The adoption of the Proof of Reputation (PoR) approach by other cryptocurrency exchanges comes at the same time that Binance’s Proof of Reputation (PoR) system is being expanded to include other coins. This comes as a direct result of the FTX failure, which brought to light the need for more openness within the cryptocurrency sector.

However, several specialists have warned that the PoR technique has a series of drawbacks. For example, it does not provide any information on the use of leverage, collateralization, or proof of liability that correlates with these concepts. This information can only be disclosed if the PoR is accompanied by financial documents detailing the financial situation of the company.

Binance released a significant upgrade to its PoR system in February 2023, which included the addition of zk-SNARK. This is an example of a zero-knowledge proof, which is a type of proof that allows verification of data without revealing the data itself. According to Binance, this will result in an improvement in the level of privacy and security provided to user data during the verification process.

In conclusion, the addition of 11 more tokens to Binance’s Proof of Residency (PoR) system is a step in the direction of increased user trust and visibility. However, it is essential to note that the PoR approach is not without its flaws, and users should always proceed with extreme caution when engaging in the use of cryptocurrency exchanges.