BitMEX founder and ex-CEO, Arthur Hayes, took to Twitter on Thursday to announce that the funds on the exchange were completely safe. And, this was due to the release of their full-fledged roof-of-liability system. Using this, users could verify their individual liability on the crypto exchange’s total liability balance.
BitMEX Reveals Proof Of Liabilities
As per BitMEX’s official skelbimas, the self-verification process can be conducted on your own and does not require a third-party auditor. Talking about client privacy, BitMEX pointed out that user privacy is their utmost concern.
[1/4] BitMEX’s PoL System Now Live & Operational
All BitMEX depositors can now verify their individual liability is included in the total exchange liability balance. This self verification process can be conducted without a third party auditor.https://t.co/1z5MJ2nlVK
- „BitMEX Research“ (@BitMEXResearch) Gruodis 1, 2022
And in order to preserve user privacy, account balances are randomly split into multiple leaves of the Merkinės medis and not stored under one single roof. Reserve and Liability snapshots will be published twice a week on Tuesdays and Thursdays.
The official announcement further stated that,
“This PoL system is not a quick panicked reaction to the failure of FTX. The system is genuinely innovative and groundbreaking. It is the first system where every user can verify for themselves that their balance is included in the total, without breaching customer privacy.”
Push For Transparency
Pagal FTX bankruptcy proceedings, it was uncovered that the crypto exchange had loaned out a large portion of its customer’s assets, keeping it hidden from the public knowledge.
As a direct result of this, well-known crypto exchanges have been frantically trying to reassure users about their atsargų įrodymas in order to promote transparency in the market.
Plačiau paskaitykite čia: Kripto biržos skuba pateikti atsargų įrodymą po FTX krizės
Concerns Raised On PoR Systems
However, this strategy has met with its share of criticism, as Kraken’s CEO, Jesse Powell points out that, exchanges publishing their reserve balances are “pointless”.
Šios Kraken CEO stated that the whole point of coming out transparent was to understand whether a crypto exchange had more crypto in its custody than what it owed to its clients.
Plačiau paskaitykite čia: „Kraken“ generalinis direktorius Binance'ą vadina „atsargų įrodymu“.
Pateiktame turinyje gali būti asmeninė autoriaus nuomonė ir jis priklauso nuo rinkos sąlygų. Prieš investuodami į kriptovaliutas, atlikite rinkos tyrimus. Autorius ar leidinys neprisiima jokios atsakomybės už jūsų asmeninius finansinius nuostolius.
Source: https://coingape.com/arthur-hayes-calls-bitmex-funds-safu-due-to-this-new-feature/