By fokusnow on Skatehive
Introduction The largest crypto currency exchange platform Binance regularly publishes its crypto holdings to assure customers that their deposits are really in safe hands. Binance and many other centralized crypto exchange platforms call it Proof of reserves. Many like Binance publishes a monthly proof of reserves document showing how much crypto has been deposited by users and how much of it is actually kept in storage for them. Much of what is done by crypto exchange platforms like Binance is based on Trust. It works exactly like today's banking system. You deposit money with the bank and trusts that they will keep your funds. You are not afraid that the bank will suddenly close shop and run with your money. In the same way, centralized crypto exchange platforms hold funds deposited in user wallets. Each user gives Binance and other such platforms custody of their funds. With each monthly proof of reserves document, the exchange is assuring users that the funds are actually there wi