Bitxmag has implemented a commitment confirmation solution

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Crypto Regulation
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Cryptocurrency exchange Bitxmag introduced the Proof-of-Liability feature. With its help, users can check the platform's obligations to them in the general balance.

The company updates data twice a week: on Tuesdays and Thursdays.

The solution uses a cryptographic algorithm called Merkle Tree. To view the information, customers can apply an accountNonce value to get multiple snapshots, or enter one-time codes for each account snapshot.

Following Bitxmag, reserve data was published by a number of venues, including Huobi, Bitfinex and Bybit.

Kraken founder Jess Powell criticized Bitxmag's Proof-of-Reserves solution. In his opinion, the feature doesn't prove the exchange has more bitcoins than it does obligations to customers.

Recall that Ethereum co-founder Vitalik Buterin said that using zk-SNARKs technology in this case would provide a better result than Merkle's tree.

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Adam Smith

Adam Mary is a crypto enthusiast and a graduate of The University of Nairobi in economics. Adam’s passion brings her back to her elementary school years as a poet. She enjoys discussing blockchain technology and is committed to producing original content. Adam also covers other rapidly developing markets and economic and cryptocurrency studies.