OKX Improving POR Transparency and Safety Through Technological Innovations

On April 12th, Lennix, Managing Director of OKX Global Institutional Business, was invited to attend the 2023 Hong Kong Web3 Carnival Main Forum and participate in roundtable discussions. Lennix said that in addition to releasing the POR of reserve certificates on a monthly basis, OKX is improving the transparency of POR to traditional financial audit standards based on technological innovations such as the overview of Merkel tree and zero-knowledge proof, and continues to lead the industry in safety and transparency. In addition, Hong Kong’s robust and clear encryption regulatory policies are a very good starting point, providing virtual asset investors with the highest level of protection currently available globally, while also contributing to the healthy and sustainable development of the industry.

OKX Lennix: OKX leads the industry in improving transparency by upgrading POR through technological innovation

On April 12th, Lennix, the Managing Director of OKX Global Institutional Business, attended the 2023 Hong Kong Web3 Carnival Main Forum and participated in roundtable discussions. During the discussion, Lennix highlighted OKX’s efforts to improve transparency and safety through technological innovations such as the overview of Merkel tree and zero-knowledge proof.

Monthly Release of POR Reserve Certificates

OKX has been releasing the Proof of Reserves (POR) of reserve certificates on a monthly basis, providing investors with clarity and assurance about the assets held by the exchange. The POR provides a snapshot of the amount of virtual assets held by OKX, calculated using a formula that takes into account the daily balances of all user wallets.

Improving Safety and Transparency through Technological Innovations

OKX is committed to improving the transparency and safety of its platform through the integration of state-of-the-art technologies.

Merkel Tree Overview

One of the technological innovations that OKX is using to improve transparency is the Merkel tree overview. The Merkel tree provides a digital signature of the entire set of account balances on the platform, enabling users to verify the authenticity of the balance data and ensuring that it has not been tampered with.

Zero-Knowledge Proof

Another technology employed by OKX to improve transparency is the zero-knowledge proof (ZKP). The ZKP enables OKX to prove that it has sufficient reserves to cover all customer deposits without revealing the actual balance of those reserves.

Hong Kong’s Encryption Regulatory Policies

Lennix also praised Hong Kong’s regulatory policies, which provide virtual asset investors with the highest level of protection currently available globally. Hong Kong’s encryption regulatory policies have been lauded for their robustness and clarity, providing a solid foundation for the growth of the virtual assets industry.

Healthy and Sustainable Development of the Industry

By providing the highest level of protection for virtual asset investors, Hong Kong has taken a significant step towards ensuring the healthy and sustainable development of the virtual assets industry. With its strong regulatory framework, Hong Kong is poised to become a major hub for the virtual assets industry, attracting investments and talent from all over the world.
In conclusion, OKX’s efforts to improve transparency and safety through technological innovations such as the overview of Merkel tree and zero-knowledge proof, combined with Hong Kong’s robust regulatory framework, are contributing to the healthy and sustainable development of the virtual assets industry. Investors can be assured that their assets are safe and their investments are protected, as the industry continues to grow and evolve.

FAQs

Q: What is the Proof of Reserves (POR) of reserve certificates?
A: POR is a snapshot of the amount of virtual assets held by OKX, calculated using a formula that takes into account the daily balances of all user wallets.
Q: What is the Merkel tree overview?
A: The Merkel tree provides a digital signature of the entire set of account balances on the platform, enabling users to verify the authenticity of the balance data.
Q: What is zero-knowledge proof (ZKP)?
A: ZKP enables OKX to prove that it has sufficient reserves to cover all customer deposits without revealing the actual balance of those reserves.