Clarify Merkle Tree：see how centralized exchanges "certify their innocence"
Based on Merkle Tree’s proof model, exchanges can prove whether the assets held by each user are included in the exchange reserves, but this scheme still has flaws. Written by: Babywhale, Foresight News Original Link: https://foresightnews.pro/article/detail/18550 In February 2019, Bitcoin and blockchain infrastructure company Blockstream published a blog post titled “ Standardizing Bitcoin Proof of Reserves ,” which explained how to self-certify the Bitcoin reserves of institutions such as exchanges and control over those reserves. Blockstream initially researched the scheme to prove to auditors the Bitcoin reserves on the Bitcoin sidechain Liquid Network, and later developed into a specification for Bitcoin Proof of Reserves. Before Blockstream, the variety of verified schemes made it difficult for users to understand the reserves of each exchange. Additionally, there is a risk of funds being stolen during the transfer of assets in signed transactions due to the need to verify owne...