Gate.io Conduct Certified & Verifiable PoR Audit to Provides Proof of 100% Collateral
작성자 게이트아이오
조회수 28
작성일 22.07.06 17:42
As the world's leading digital asset trading platform, Gate.io has been operating safely and stably for nine years, always putting the safety of users' assets in the first place. The platform has now officially announced it will commence another proof-of-reserves audit in July 2022. After completion of the audit, users will be provided with a method to verify their funds using an open-source, transparent, and cryptographically-verifiable Merkle tree.
In 2020, as the first cryptocurrency exchange in the world to commit to providing 100% collateral, Gate.io has worked closely with Armanino LLP, a leading US audit firm, to successfully provide users with professional and credible asset verification services in an open-source, transparent, and cryptographically-verifiable Merkle tree. The asset verification model has been patented by Gate.io in 2020. Performing PoR audits in this model have become one of the commonplaces for exchanges to verify asset security, and Gate.io has set a standard for the industry in asset security verification.
What is 100% collateral?
In a centralized exchange for trading blockchain assets, every user’s assets are recorded by the ledger of a centralized database. The recorded assets in the database are the total amount of the user’s assets. Collateral is the amount of user’s assets held by the exchange. For a cryptocurrency exchange, its collateral equals the total amount of assets controlled by the exchange in the blockchain. Collateral can also include the amount of fiat currency in a bank, for fiat trading exchanges. In terms of Gate.io, its fiat trading is performed in a C2C manner without holding any of users’ fiat currency. In a blockchain, 100% collateral of a coin is provided, if the amount of the coin owed by an exchange is higher than or equal to the total number of the coin held by all of its users.
Why is 100% Collateral Important?
Assets held by a centralized exchange can’t be monitored by the users themselves. In this sense, an exchange could potentially misuse users’ assets without their knowledge, which could lead to a situation in which the collateral turns out lower than the recorded assets in the database. As a result, users would face tremendous risks, involving delayed withdrawal. Worse yet, users could be unable to withdraw their coins as a result of insolvency of the exchange. All these factors combined will diminish a users’ sense of trust in an exchange. Therefore, if the exchange wants to gain users’ trust, it must be able to prove that the collateral is higher than the recorded assets in a trustworthy manner, so as to sustain sound development in the long run.
What is a Merkle Tree?
Merkle tree, a binary hash tree, was invented by Ralph Merkle in 1979. Each leaf node of the tree stores the hash value of a data element. The stored data is irreversible with the hash algorithm of the tree as any changes in the data of the leaf node will lead to a different root hash. In the block of Bitcoin, every transaction is recorded through the tree structure.
How Does Gate.io Prove 100% Collateral
Gate.io provides users with a reliable method that combines the mathematical algorithm and a financial audit to check the collateral, including a user’s total assets on the platform; all whilst protecting users’ privacy from hacking. We adopt two methods to prove the user’s total assets and users’ collateral held by Gate.io. The first method is to store each user account’s hash value of assets in the leaf nodes of the Merkle tree. The second method is to audit those assets in the leaf node of the Merkle tree and verify all the users’ collateral held by Gate.io through an audit of a third party institute.
Conclusively, the written audit report and the Merkle tree of the hash value of users’ total assets are open to the public through the audit of the third party. Each user, through the application of mathematical algorithms, can verify whether their assets amount is recorded accurately in the Merkle tree.
In essence, 100% collateral ensures that the exchange can meet the full withdrawal requirements of all users at any time without the risk of a run caused by a concentration of user withdrawals. Any user of the platform can obtain verification information from the platform and verify that their assets are accurately recorded in the audit through the Merkle tree and verification program.
During a time of market fluctuations and uncertainty, Gate.io is commencing another proof-of-reserves audit, taking steps to enhance the security of its users' assets and improve confidence in the industry and market. Gate.io is a trading platform that does not charge listing fees, only launches quality projects and provides users with proof of assets and audit reports through Merkle tree, aiming to create a safe and transparent trading environment to help the healthy and stable development of the digital asset market.
Since its establishment in 2013, Gate.io has been operating safely for nine years with zero incidents. Gate.io is committed to accelerating the promotion and application of global blockchain technology and building a more open, free and innovative economic and financial system for the world.
We appreciate your continued support and trust during the nine-year growth of Gate.io!
Gateway to Crypto
Trade over 1,400 cryptocurrencies safely, quickly and easily on Gate.io
Sign up to enter the crypto gateway and get 40% commission from referrals
Download iOS/Android App right now.
Reach out to us!
Twitter: https://twitter.com/gate_io
Telegram: https://t.me/gateio
Instagram：https://www.instagram.com/gateioglobal
Medium：https://medium.com/@gateio
Podcast: https://gateio.buzzsprout.com/?ch=buzzs
Gate.io Team
July 6
In 2020, as the first cryptocurrency exchange in the world to commit to providing 100% collateral, Gate.io has worked closely with Armanino LLP, a leading US audit firm, to successfully provide users with professional and credible asset verification services in an open-source, transparent, and cryptographically-verifiable Merkle tree. The asset verification model has been patented by Gate.io in 2020. Performing PoR audits in this model have become one of the commonplaces for exchanges to verify asset security, and Gate.io has set a standard for the industry in asset security verification.
What is 100% collateral?
In a centralized exchange for trading blockchain assets, every user’s assets are recorded by the ledger of a centralized database. The recorded assets in the database are the total amount of the user’s assets. Collateral is the amount of user’s assets held by the exchange. For a cryptocurrency exchange, its collateral equals the total amount of assets controlled by the exchange in the blockchain. Collateral can also include the amount of fiat currency in a bank, for fiat trading exchanges. In terms of Gate.io, its fiat trading is performed in a C2C manner without holding any of users’ fiat currency. In a blockchain, 100% collateral of a coin is provided, if the amount of the coin owed by an exchange is higher than or equal to the total number of the coin held by all of its users.
Why is 100% Collateral Important?
Assets held by a centralized exchange can’t be monitored by the users themselves. In this sense, an exchange could potentially misuse users’ assets without their knowledge, which could lead to a situation in which the collateral turns out lower than the recorded assets in the database. As a result, users would face tremendous risks, involving delayed withdrawal. Worse yet, users could be unable to withdraw their coins as a result of insolvency of the exchange. All these factors combined will diminish a users’ sense of trust in an exchange. Therefore, if the exchange wants to gain users’ trust, it must be able to prove that the collateral is higher than the recorded assets in a trustworthy manner, so as to sustain sound development in the long run.
What is a Merkle Tree?
Merkle tree, a binary hash tree, was invented by Ralph Merkle in 1979. Each leaf node of the tree stores the hash value of a data element. The stored data is irreversible with the hash algorithm of the tree as any changes in the data of the leaf node will lead to a different root hash. In the block of Bitcoin, every transaction is recorded through the tree structure.
How Does Gate.io Prove 100% Collateral
Gate.io provides users with a reliable method that combines the mathematical algorithm and a financial audit to check the collateral, including a user’s total assets on the platform; all whilst protecting users’ privacy from hacking. We adopt two methods to prove the user’s total assets and users’ collateral held by Gate.io. The first method is to store each user account’s hash value of assets in the leaf nodes of the Merkle tree. The second method is to audit those assets in the leaf node of the Merkle tree and verify all the users’ collateral held by Gate.io through an audit of a third party institute.
Conclusively, the written audit report and the Merkle tree of the hash value of users’ total assets are open to the public through the audit of the third party. Each user, through the application of mathematical algorithms, can verify whether their assets amount is recorded accurately in the Merkle tree.
In essence, 100% collateral ensures that the exchange can meet the full withdrawal requirements of all users at any time without the risk of a run caused by a concentration of user withdrawals. Any user of the platform can obtain verification information from the platform and verify that their assets are accurately recorded in the audit through the Merkle tree and verification program.
During a time of market fluctuations and uncertainty, Gate.io is commencing another proof-of-reserves audit, taking steps to enhance the security of its users' assets and improve confidence in the industry and market. Gate.io is a trading platform that does not charge listing fees, only launches quality projects and provides users with proof of assets and audit reports through Merkle tree, aiming to create a safe and transparent trading environment to help the healthy and stable development of the digital asset market.
Since its establishment in 2013, Gate.io has been operating safely for nine years with zero incidents. Gate.io is committed to accelerating the promotion and application of global blockchain technology and building a more open, free and innovative economic and financial system for the world.
We appreciate your continued support and trust during the nine-year growth of Gate.io!
Gateway to Crypto
Trade over 1,400 cryptocurrencies safely, quickly and easily on Gate.io
Sign up to enter the crypto gateway and get 40% commission from referrals
Download iOS/Android App right now.
Reach out to us!
Twitter: https://twitter.com/gate_io
Telegram: https://t.me/gateio
Instagram：https://www.instagram.com/gateioglobal
Medium：https://medium.com/@gateio
Podcast: https://gateio.buzzsprout.com/?ch=buzzs
Gate.io Team
July 6
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