Kanyeswap has implemented a commitment confirmation solution

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

Kraken founder Jess Powell criticized KanyeSwap'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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Simon Calder

Simon is outgoing young lad who likes adventures and discovering new things. Despite his boring life, He loves writing about cryptocurrencies and exploring what blockchain technology can do for the coming digital world where all adventures will be virtual.