CryptoKing
Wed Jul 17 2024
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5 answers
1118
How does crypto proof of reserves work?
Could you elaborate on the mechanics behind crypto proof of reserves? I'm curious to understand how this process verifies the authenticity and availability of digital assets held by a cryptocurrency exchange or custodian. Specifically, what steps are involved in the auditing process? How does the proof demonstrate that the assets are not double-counted or otherwise misrepresented? Additionally, what are some of the key challenges in implementing and maintaining a robust proof of reserves system? Your insights into this topic would be greatly appreciated.
