Cryptomexiz has implemented a commitment confirmation solution

by
Crypto Regulation
DCG and Barry Silbert hit with securities lawsuit 

Cryptocurrency exchange CryptoMexiz 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 CryptoMexiz, reserve data was published by a number of venues, including Huobi, Bitfinex and Bybit.

Kraken founder Jess Powell criticized CryptoMexiz'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.

Read more about

Graeme Massie

Graeme is a graduate of Mass Communication and Media Studies. He joined the blockchain movement in 2016 when a friend of his introduced him to an investment platform accepting bitcoin. He has never looked back since then. Graeme believes the world needs real change and freedom from poverty. He sees crypto and the underlying distributed ledger technology as the catalyst to a better future for all.