Bybit uses the Merkle tree to authenticate its proof of reserves

Bybit uses the Merkle tree to authenticate its proof of reserves

Bybit, the third most visited bitcoin and crypto exchange in the world, has implemented a proof of reserves system that allows users to directly verify the company’s holdings.

The system uses the Merkle tree to allow users to quickly verify their assets deposited in Bybit and authenticates that Bybit holds all user assets at a minimum ratio of 1:1.

Learn more » Official site

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With the release of the Merkle tree, Bybit has further demonstrated its strong financials and commitment to full transparency. Users can use their Merkle Leaf code to verify that their assets are recorded as liabilities in Bybit’s reserves. They can also verify ownership of wallets by Bybit and verify that assets are held in a 1:1 ratio.

Direct verification of proof of reservations is available to all users with actions in the following areas:

  • Trading accountswhich include spot, futures, options and margin accounts.
  • Funding accountswhich include crypto assets and financial balances.

Verification is available for assets on multiple blockchains, including Ethereum, Arbitrum, BNB Smart Chain, Optimism, Polygon, Avalanche, and TRON. Bybit takes regular snapshots to ensure the balance and highly liquid nature of their holdings.

“At Bybit, we believe that transparency and accountability are key to building trust in the cryptocurrency industry,” said Ben Zhou, co-founder and CEO of Bybit.

“Our reserve proof system uses a specially designed Merkle tree. The crypto solution promotes a crypto-native, trustless model that provides verifiable evidence of our on-chain assets and liabilities and gives our users confidence that their funds are safe with us.”

Merkle tree, built from the ground up by Bybit, can securely verify the contents of Bybit’s reserves down to granular detail with the clarity and accessibility that blockchain has to offer. Bybit has also completed wallet ownership verification and released detailed guides on how to perform user asset self-verification and Bybit ownership verification on its wallets.

“The widespread adoption of proof of reserves by crypto exchanges is a positive development for the blockchain industry as we come together to rebuild trust using the very technology we advocate,” Zhou said. “We want to normalize transparency and accountability in the digital asset space.”

To demonstrate its commitment to ethical practices, Bybit has recently implemented a number of initiatives, including:

  • Publish the contents of its Bitcoin and Ethereum wallets initially, viewable via a Nansen dashboard;
  • Ensure flawless withdrawals alongside investment in building a robust proof of reserves mechanism;
  • Strengthen its risk management controls to more closely comply with KYC and AML requirements and regulations; and Realization of regular certificates.

“Our mission is to be a ‘crypto ark’ for the world. It is therefore essential for us to demonstrate the highest standards of accountability and responsibility,” Zhou said. “This past year has been challenging, but the crypto industry has matured accordingly and major players have risen to the challenge and shown true resilience. We remain committed to continuing to democratize financial services and provide access to the incredible opportunities of Web3.”

About Bybit

Bybit is a cryptocurrency exchange created in 2018 that offers a trading platform where crypto traders can find a super-fast matching engine, excellent customer service, and multilingual community support. Bybit is a proud partner of reigning Formula 1 Driver and Constructor Champions, Team Oracle Red Bull Racing, esports teams NAVI, Astralis, Alliance, Made in Brazil (MIBR), City Esports and Oracle Red Bull Racing Esports, and Borussia Dortmund football team.

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Learn more about Bybit » Official site

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Bybit uses the Merkle tree to authenticate its proof of reserves

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