OKX has reached a significant milestone with its 24th consecutive Proof of Reserves (PoR) report for October 2024. Their post on X revealed marking two years of consistently maintaining a 100% or higher reserve ratio.
This accomplishment shows OKX’s commitment to financial transparency and the safeguarding of customer assets. As of the latest verification on October 8, 2024, at 00:00:00 (UTC+8), OKX holds reserves covering over $20.3 billion in user assets.
The report highlights impressive reserve percentages, including Bitcoin (BTC) at 104%, Ethereum (ETH) at 102%, and Tether (USDT) at 106%.
With these verifications, OKX aims to set a high standard for trust in the crypto industry, showcasing its adherence to a transparent, user-centered approach.
Proof of Reserves: A Pioneering Commitment to Security
Proof of Reserves is an essential protocol in the cryptocurrency industry, demonstrating that custodians have sufficient funds to cover user deposits and remain solvent.
OKX’s report confirms that each customer’s assets are backed by a 1:1 reserve ratio, showing that its balance sheet is more than capable of covering user liabilities.
For instance, the report reveals that OKX holds 137,365 BTC in accounts, with wallet assets totaling 143,527 BTC. Similarly, Ethereum reserves reflect 1,556,932 ETH in account assets and 1,592,761 ETH in wallets.
This system builds customer confidence, allowing users to verify assets independently while maintaining privacy.
By making its wallet holdings public, OKX allows users to confirm the reserve data via blockchain, showcasing a consistent commitment to security and financial accuracy, which is especially important in light of the volatile cryptocurrency market.
The Role of zk-STARK in Transparent Verification
To further enhance the transparency of its Proof of Reserves, OKX uses a zero-knowledge proof algorithm called zk-STARK. This advanced cryptographic system confirms that OKX holds sufficient assets without revealing sensitive user data.
By generating a tamper-proof record, zk-STARK enables secure verification of customer assets and meets three core constraints: Total Balance, Non-negative Balance, and Inclusion.
For instance, the report details that OKX holds over $5.76 billion in Tether (USDT) and $1.04 billion in USD Coin (USDC), both with reserve ratios of 106% and 100%, respectively.
These rules ensure that OKX’s reserve calculations include all user balances, accurately representing the exchange’s solvency. zk-STARK thus adds a layer of cryptographic proof that reassures users of OKX’s reserve levels, strengthening OKX’s dedication to protecting user funds.
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Verifying OKX’s Wallet Ownership and Reserve Ratio
OKX has made its on-chain wallet addresses publicly accessible, enabling users to verify the company’s assets. These addresses include signed messages to confirm their ownership, making it easier for users and third-party verifiers to confirm OKX’s reserves.
The report also states that OKX’s holdings include 236,200,791 XRP and 3,931,629,608 DOGE, with reserve ratios of 103% and 101%, respectively.
To further simplify verification, OKX offers tools that allow users to validate the reserve ratio by comparing wallet holdings to account assets from a Merkle root.
OKX’s Proof of Reserves system, available as open-source on GitHub, allows transparency while safeguarding user privacy.
This unique approach, verified by zk-STARK and public records, sets OKX apart as a leader in crypto exchange transparency, building a trusted ecosystem for its customers.
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