HOME / GLOSSARY
Proof of Reserves (PoR)
GLOSSARY PSEO / WEB3 GLOSSARY
Proof of Reserves (PoR)
noutita.com#TECH
A cryptographic auditing procedure utilizing Merkle trees to prove a centralized exchange holds sufficient digital assets to back 100% of user liabilities.
How this mechanic works
Widely adopted post-FTX, Proof of Reserves enables users to verify their individual account balance against the exchange's audited on-chain cold storage reserves without disclosing private customer data.
Related terms
StakingValidateurProof of StakeSlashingImpermanent LossMEV