Although major hacks at crypto exchanges and custodians happen far less frequently than they used to, many of these operators are now responsible for hundreds of billions of dollars worth of client assets – often without the same regulatory and auditing requirements of their peers in traditional markets.
With blockchains offering a level of transparency not feasible elsewhere, the concept of Proof of Reserves was first proposed by Bitcoin core developer, Greg Maxwell, back in 2014 whereby entities could public attest, and cryptographically prove, that they could meet their total obligations without impacting the privacy of individual customers.
Although a small number of exchanges adopted these practices, they have for the most part been ignored.
Noah joined Ian to discuss the paper that he recently co-authored on behalf of the Chamber of Digital Commerce that proposes best practices, bother operationally and technically, for operators in the space to implement – thus setting standards to enhance trust in the industry as a whole.
You can download the full report at: