Crypto Exchanges Conclude That Proof-of-Reserves (POR) Is Not The Same

Proof-of-Reserves (POR) is a method for cryptocurrency exchanges to demonstrate that they hold sufficient assets to cover the deposits of their customers. While POR can be an effective way to increase transparency and build trust among users, it is important to note that not all POR implementations are created equal.

Crypto exchanges have concluded that POR is not the same across all exchanges due to the varying methods they use to verify the assets they hold. Some exchanges use trusted third-party auditors to verify their reserves, while others rely on self-auditing procedures.

Additionally, some exchanges may claim to use POR but only provide a snapshot of their assets at a particular moment in time, rather than proving that they consistently hold sufficient reserves over an extended period.

Therefore, it is important for users to do their due diligence and research the POR procedures used by exchanges they are interested in using. They should also consider other factors, such as the exchange's reputation, security measures, and regulatory compliance, when choosing a platform to trade on.