Satoshi’s Math: How Bitcoin’s Use of Mathematical Tools Ensures System Consistency

Over 14 years ago, Satoshi Nakamoto unveiled the Bitcoin network to the world, creating the very first triple-entry bookkeeping system known to mankind. This technological wonder, with a current market value of $540 billion, ingeniously integrates encryption and mathematical formulas to fortify its security. In this exploration, we delve into two of the mathematical choices

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Binance Launches Proof of Reserves for Bitcoin

<p class="MsoNormal text-align-justify">Binance, the world’s largest cryptocurrency exchange by trading volume, on Friday launched the Proof of Reserves (PoR) for its Bitcoin (BTC) holdings in its latest show of transparency to reassure customers of its health following the sudden collapse of top cryptocurrency exchange FTX.</p><p class="MsoNormal">A PoR is an independent audit conducted by a third party that seeks to confirm that a digital asset custodian truly holds the assets it claims it has in reserves to secure customers' funds. The <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank">fall of once-beloved FTX</a> is currently driving renewed interest in PoR in the cryptocurrency community.</p><blockquote class="twitter-tweet"><p dir="ltr" lang="en">As part of our ongoing commitment to transparency, we have provided new updates on <a href="https://twitter.com/hashtag/Binance?src=hash&ref_src=twsrc%5Etfw">#Binance</a>’s Proof of Reserves. Further updates for <a href="https://twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw">$ETH</a>, <a href="https://twitter.com/search?q=%24USDT&src=ctag&ref_src=twsrc%5Etfw">$USDT</a>, <a href="https://twitter.com/search?q=%24USDC&src=ctag&ref_src=twsrc%5Etfw">$USDC</a>, <a href="https://twitter.com/hashtag/BUSD?src=hash&ref_src=twsrc%5Etfw">#BUSD</a> & <a href="https://twitter.com/hashtag/BNB?src=hash&ref_src=twsrc%5Etfw">#BNB</a> will be coming in the near future.Stay tuned.</p>— Binance (@binance) <a href="https://twitter.com/binance/status/1596115656059109377?ref_src=twsrc%5Etfw">November 25, 2022</a></blockquote><p class="MsoNormal">Merkle Tree Data</p><p class="MsoNormal">The new update comes two weeks after Binance <a href="https://www.financemagnates.com/cryptocurrency/cryptocom-releases-cold-wallet-addresses-of-select-largest-assets/">published the cold wallet addresses</a> and balances of six of the 600 coins traded on its platform. Details shared by the top exchange showed that it has about 475,000 BTC, 4.8 million ETH, 17.6 billion USDT, 21.7 billion BUSD, 601 million USDC and 58 million BNB.</p><p class="MsoNormal text-align-justify">In a statement shared with Finance Magnates on Friday, Binance noted that it has also made it possible for users to verify its BTC holdings with the Merkle Tree data structure. The exchange described the PoR for BTC as “the first interaction of the feature,” adding that it will introduce verification for Ether, USDT, USDC, BUSD and BNB "soon."</p><blockquote class="twitter-tweet"><p dir="ltr" lang="en">A Merkle Tree is a cryptographic tool that enables the consolidation of large amounts of data into a single hash.On <a href="https://twitter.com/hashtag/Binance?src=hash&ref_src=twsrc%5Etfw">#Binance</a>, you can use Merkle's Trees to verify your <a href="https://twitter.com/hashtag/Bitcoin?src=hash&ref_src=twsrc%5Etfw">#Bitcoin</a> is held 1:1, and you can have it verified by a third-party audit agency. Here's how it works ?? <a href="https://t.co/ZH1DN27jWO">pic.twitter.com/ZH1DN27jWO</a></p>— Binance (@binance) <a href="https://twitter.com/binance/status/1596202200266846208?ref_src=twsrc%5Etfw">November 25, 2022</a></blockquote><p class="MsoNormal">“Binance is also working to onboard an independent third-party auditor to validate the Merkle Tree data,” the exchange said, adding that it has designed a new PoR site to show that it holds client funds in full, with reserves.</p><p class="MsoNormal">“So, in simple terms, when a user deposits one Bitcoin, Binance’s reserves increase by at least one Bitcoin to ensure client funds are fully backed. People will be able to check the site and see Binance’s Proof of Reserves, showing Binance’s reserve ratio alongside customer liabilities,” <a href="https://www.financemagnates.com/tag/binance/" target="_blank">Binance</a> explained.</p><p class="MsoNormal text-align-justify">‘Massive Undertaking’</p><p class="MsoNormal">In the statement, Changpeng Zhao, Binance’s CEO and Founder described the new project as “a massive undertaking.” He added that developing the data required for the majority of assets under the exchange's custody requires a few weeks.</p><p class="MsoNormal">“Given recent events, it is understandable that the community will demand more from crypto exchanges, far more than what is currently required of traditional financial institutions. That’s why we are pleased to provide this latest feature for our users to verify their funds,” Zhao explained. </p><p class="MsoNormal">The CEO assured that the firm was working to get the next update out as quickly as possible to meet the expectations of the cryptocurrency community.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Nine Leading Crypto Exchanges Commit to Proof of Reserve Amidst FTX’s Liquidity Crunch

Following the liquidity crunch of Sam Bankman-Fried's FTX exchange that ignited a market collapse.

Continue reading Nine Leading Crypto Exchanges Commit to Proof of Reserve Amidst FTX’s Liquidity Crunch at DailyCoin.com.

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Crypto Exchange Binance Raises Its SAFU Fund To $1B Amid Price Swings

Recently, the crypto market has gotten into a tight tunnel as prices keep decreasing. Most crypto assets are moving to the south with little or no break. The bears are becoming too intense, and tension keeps increasing in the market. The fluctuations have triggered the leading crypto exchange Binance, to pursue sustainability. This new action came after the exchange announced its intent to acquire the FTX to ease its liquidity issues. Related Reading: These Solana Numbers May Scare Off SOL Investors – Here’s Why The CEO of Binance, Changpeng Zhao (CZ), has actively noted the events in the Binance-FTX drama. Also, he took to Twitter to disclose some points regarding the drama. In a tweet today, CZ revealed that his firm made more funding on its insurance backing. According to the post, Binance increased its Security Asset Fund for Users (SAFU) to $1 billion equivalent. CZ reported that the move ensures the network’s safety against the market’s recent price fluctuation. In addition, the aim is to protect users by ensuring continuing operations regardless of market trends. Details Of Binance’s SAFU Further, the Binance CEO mentioned the detail of the two reserve accounts and their links. One of the accounts holds Binance Coin (BNB) token and the Binance stablecoin (BUSD) worth about $700 million. The second account comprises Bitcoin (BTC) tokens worth about $300 million. Reacting to the Twitter post, some people from the crypto community made their positions known to the CEO. Some applauded his initiative and unique leadership vision for the network’s security. One of the users mentioned that all crypto companies should emulate Binance to have a Security Asset Fund for Users (SAFU). However, some still question the fund’s reserve cap adequacy for users. In 2018, the Binance SAFU kicked off with a fund dedicated to backing up user holdings in critical situations. Further, the firm allocated 10% of the trading fee to the fund. Gradually, the fund kept growing and hit $1 billion for the first time in February this year. CZ Maintains Transparency In The Crypto Firm The CEO of Binance has maintained a transparent position in handling almost all the firm’s events. CZ stated that the company would deploy a system of Proof-of-Reserve using Merkle Trees. The aim is to achieve full transparency with the community. In addition, Merkle Trees enable the encoding of blockchain data through a more secure and efficient method. Related Reading: Crypto Market Liquidations Reach $830 Million, When Will It Stop Bleeding? Hence, reactions on the sufficiency of Binance’s SAFU are emerging after CZ tweeted on the use of Proof-of-Reserve the previous day. The CEO mentioned that the mechanism would provide detailed information on liquidity for the network. featured Image From Pixabay, Charts From Tradingview

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What is Sharding? This Ethereum Scaling Concept Explained

As the scaling debate in cryptocurrencies continues, some potential solutions have actually been in development for quite some time now. Specifically, in the case of Ethereum, where a large focus is placed on decentralization and security at the expense of scalability, the application of sharding in conjunction with implementing Proof of Stake consensus is seen [...]

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How Taro Brings Assets To Bitcoin Through Taproot And Lightning

Taro, a new protocol proposed by Lightning Labs, leverages Taproot and the Lightning Network to bring new assets and scalability to Bitcoin.

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