[PRESS RELEASE – Majuro, Marshall Islands, 6th July 2022]
Gate.io has announced that it is making another proof-of-way to provide user verifiable repository data through a Merkle Tree implementation audited by a major third-party firm, following several high-profile bankruptcies in the space. Will initiate reserve audit.
In 2020, as the first cryptocurrency exchange in the world committed to providing 100% collateral, Gate.io has teamed up with a leading US audit firm, Armanino LLP, to successfully provide users with an open, professional and reliable asset. Verification services can be provided. Source, transparent and cryptographically verifiable Merkle tree. The asset verification model was patented by Gate.io in 2020. Performing PoR audits in this model has become one of the common places for exchanges to verify asset security, and Gate.io has set a benchmark for the industry in asset security verification.
Exchanges use proof-of-reserve (PoR) audits to prove that 100% of user funds are on the platform. Despite the volatility of the market, Gate.io is demonstrating that its stability is unaffected and that it has enough capital to continue operations and serve its users.
Proof-of-Reserve Audit Briefly
In centralized exchanges, users’ cryptocurrency balances are recorded in a centralized ledger; We will refer to this as the “Effective User Repository”. Additionally, we will refer to the actual amount of cryptocurrency users store on the exchange chain as “exchange reserves”.
Take Gate.io as an example; When the exchange proves that it has 100% of its reserves verified by a qualified audit firm, it is proving that the total amount of exchange reserves is equal to or greater than the effective user reserves.
After the audit is complete, users will be provided with a method to verify their funds using an open-source, transparent and cryptographically-verifiable Merkle tree. In short, a Merkle tree is a way of encrypting data that cannot be changed but can be verified. Alternatively, it allows users to reliably interact with the auditor’s findings without exposing the content of the data.
As a result, users of Gate.io can be confident that their assets are safe and accessible at any time, and that their assets are actually available on the exchange, regardless of market volatility.
Tom Yang, Executive Vice President of Gate.io, said, “Gate.io protects user funds at multiple levels, including legal, regulatory, platform security and proof-of-reserve audits. Gate.io has created security to protect user assets. has invested millions of dollars in measures and legal funds.”
To be a leader in user trust and platform transparency
Although these audits have been around since the early years of crypto exchanges, they have not always been conducted with complete transparency and credibility. Initially, it was common for exchanges to self-audit, lack reliable third-party audits, and fail to provide an opportunity for users to verify their assets.
After being developed and implemented by Gate.io, the third-party audit and Merkle tree verification methodology has been found effective by the market. Exchanges can in fact prove that the User Assets held by the Platform are not less than the total amount of funds that belong to Platform Users. This not only eliminates user doubts and enhances user confidence, but also promotes healthy and stable development of the platform and the industry.
Why provide proof of reservation now
During times of volatility and uncertainty in the market, Gate.io is taking steps to enhance the security of its users’ assets and build confidence in the industry and the market. The Exchange has a history of transparent and secure operations and intends to continue operating under these principles.
As one of the top ten cryptocurrency exchanges, Gate.io has a long history of providing secure services in the cryptocurrency industry, with zero asset settlement in its nine years of operation. In addition, the platform has taken steps to adhere to ethical and transparent operations, which is evident from its security history and by setting an industry example for open, transparent and reliable proof-of-reserve audits. All this coupled with the exchange’s commitment to advance the blockchain industry, presents as a beacon of hope and confidence, and provides a top-tier platform that crypto investors can rely on.
Founded in 2013, Gate.io is one of the oldest, leading cryptocurrency exchanges. Gate.io offers most of the major digital assets and has over 10 million registered users worldwide. It is consistently ranked as one of the top 10 cryptocurrency exchanges based on liquidity and trading volume on CoinGecko, and has been verified by the Blockchain Transparency Institute (BTI). Additionally, Gate.io has been rated 4.5 by Forbes Advisor, making it one of the best crypto exchanges for 2021. In addition to the main exchange, Gate.io also provides other services such as decentralized finance, research and analysis, venture capital. Investments, Wallet Services, and more.
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