Gate.io Implements Zero-Knowledge Tech in Upgraded Proof of Reserves Method

Dear Gate.io users,
We are pleased to announce that Gate.io’s Proof of Reserves (PoR) process has received its most significant upgrade to date. The new method enhances transparency and security in the existing PoR process by introducing zero-knowledge tech, expanding the covered assets, and providing more frequent reporting and publishing.

Gate.io pioneered PoR in 2020 by enlisting a third-party auditor to verify exchange wallets, compile user balance data in a Merkle tree, and publish the anonymized data. This allowed users to securely and privately verify that their account balances were reflected in the data compiled, therefore confirming the exchange truly holds their assets. The process was repeated following the collapse of FTX. While this method does provide security, privacy, and independent verification, it was identified that there was still room for improvement.

The latest upgrade has introduced zero-knowledge technology (zk-SNARKs) to Gate.io’s existing PoR process. Primarily, implementing zk-SNARKs addresses concerns about the previous method, which left open the possibility of including fabricated accounts with negative balances to alter the data. In addition, the enhanced process upholds and improves upon the following:

- Privacy Protection: Users can conduct asset verification while retaining the privacy of assets and identities.

- Accuracy: Zero-knowledge proofs ensure higher accuracy in the data presented to and verified by users.

- Risk Reduction: Various risks, such as data leakage, identity theft, and other potential threats, are better mitigated by implementing zero-knowledge proofs.

Following the upgrade, PoR certificates will be generated utilizing the new process and covering the top 100 digital assets by market capitalization. The PoR certificates will be regularly generated and published on Gate.io’s Proof of Reserves webpage, where users can verify the results independently. Additionally, to continue to meet the diverse needs of users in an ever-evolving market, Gate.io will regularly uate the market and gradually increase supported currencies.

Currently, if user deposits are deducted from the total reserves, a balance of around $400 million USDT worth of various assets is present. This surplus is crucial for safeguarding user assets, as the assets held in reserve exceed total user deposits. This reflects the stability of the exchange and the commitment to protecting users’ rights and interests.

The latest upgrades have been released as open source and align with existing guarantees and Gate.io’s founding purpose: to provide safe, secure, and reliable digital asset services. Additional information about how zk-SNARKs improve Gate.io’s PoR is available on Gate Learn.

For more details, please visit Gate.io’s Proof of Reserves webpage:

Thank you for your support as we continue to expand features, improve the overall experience, and provide the best digital asset services.

Gate.io Team

Author: Global Marketing Aaron
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