Transparency Better Than an Audit

OKX announced it will upgrade its Proof of Reserves system in the coming months as it attempts to position itself as the “transparent” exchange.As the number two crypto exchange OKX is using its position to set new standards for transparency according to its managing Director Lennix Lai.

According to Cryptorank.io OKX is the world’s second largest crypto exchange by adjusted volume in the spot market.

The new upgrade aims to enhance transparency while maintaining customer privacy with the first upgrade being effective in its upcoming March PoR which will include full liability tree disclosure.

In the coming months the most interesting part is within the second upgrade which will involve using zero knowledge proofs (ZKP) a cryptographic method which guarantees solvency by comparing the net equity of user assets to exchange reserves and allows user to verify funds exist.

In much simpler terms this means users can confirm that all money deposited is accounted for and ensures that the exchange has enough money to pay everyone if one chooses to withdraw their funds.

OKX Chief Marketing Officer Haider Rafique in a statement said, “the company wanted to exceed market expectations for transparency.”

The upgrade will make it possible to verify whether your Bitcoin has been deposited into OKX-branded public address by checking the blockchain allowing users to always check any time the Bitcoin exists in your address.