Proof of Reserve Auditing software: A 100% must-have integration!

The occurrence of centralized exchange platforms is drenched in this entire crypto galaxy; potentiating custodians to verify transactions thus enhancing trust and safeguarding the cryptocurrencies of users. The Crypto market is flourishing and flooded with custodian crypto wallets whose keys are accessible by the business itself though there is an onset of decentralized finances. Because users are not flexible in dealing and handling the funds and cryptocurrencies by themselves, hence dependent solely on ventures.

However, the major issues in custodian crypto wallets will pertain to a lack of transparency while maintaining the funds and their verification. Proof of Reserve contract or audit is a remedy that eradicates this problem for off-chain and cross-chain platforms. Exploiting indispensable cryptographic data structures like Merkle Trees and Public wallet verification that checks whether the user deposits of off-chain vault and reserve balances match. This peculiar and reliable mechanism enhances the trustworthiness of the ventures and makes the crypto exchange to be liable for the cryptocurrencies of users.

Our Clients

Microbuddies NFT Collection

Wanna give a test ride of our NFT collections? Make your footprints on our exclusive NFT collectibles - Microbuddies. It is an NFT strategy game that indulges cute and adorable collections of microbes that are emphasized with the production of GOO - native currency.

We dealt with their project, handing from pilot scale to its accomplishment. The client is surpassing huge revenue with their extensive gaming experience portfolio that leveraged infinite audiences. With a meek passion, we also revolutionized their gaming with a lucrative gamut of our marketing services. - Cryptocurrency Exchange and NFT Marketplace

Bag piles of cryptocurrencies at just one tap on, a massive revenue generator in this crypto economy. A leading firm that adopted and utilizeds our tech stacks and now skyrocketed with a brilliant NFT marketplace and cryptocurrency exchange platform.

We unified their goals to make the fascinating marketplace for showcasing digital avatars, built XT smart chain features, and enabled the platforms on multiple devices.

Partnership With EOS

Our partnership with EOS has led to substantial development of blockchain platforms, especially dApps administered with a top speed of transactions, proven configurations, and security above the threshold. We utilize their compliant technological stacks that can manipulate the features of the inventive platforms leading to the finest inspiring business-grade services. We widen our scope by tailoring their standalone operating systems and adaptive technologies at one shot.


Partnership With Polygon

Inching every small step to accomplish our dApps, we partnered with Polygon-Matic, a leading blockchain firm. Polygon is an off-chain or decentralized Ethereum scaling platform that handles transactional operations with high throughput. Sequencing the Ethereum scaling solutions and frameworks to meet the requirements of building dApps is our vision and reason for the partnership. Uncoiling fast-driven transactions, low gas fees, and low carbon fuel expenditure will enhance the usability of the platforms.

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Proof of Reserves Audit - An overview

Proof of reserves (PoR) is generally a third-party authentication that performs an auditing function to witness the stability of transactions, reserves balance, and user assets. Auditors will trace out the cryptographic signatures to assess the total balance of the users. Thus the proof of reserve assesses the custodian to ensure there is no inconvenience in the riches of users' funds. Basically, it provides high transparency that can rupture the barriers of launching ventures that are centralized so that it enhances the trustworthiness of users.

A proof of reserve (PoR) audit by a crypto venture produces a 100% authentication report called an attestation. This report validates the current balance of reserves that are held in a venture. These audits are done periodically like once a month or quarter, but you may find a few ventures that provide real-time proof-of-reserves balance updated on their website.

Why is Proof of Reserve superior in the crypto galaxy?

Accountability with proof of Reserve

  • 1. Financially stabilized

  • 2. Trusted platform

  • 3. Secured users assets

  • 4. High transparency

Without Proof of Reserve

  • 1. Lack of transparency

  • 2. Zero or delayed cash out

  • 3. The platform may suffer from Withdrawal issues

  • 4. Bankruptcy may prevail

Proof of Reserves for Crypto Exchange
Business benefits acquisition by a tech giant

  • For UsersBehold your recognition and certainty with an elevated user base.

  • RegulatorsExploit our adroit developers to satisfy most of the international regulatory requirements.

  • ManagementEnhanced trust in your own interior operational system proffered by our industrial CPA’s assessing your process.

Proof of Reserve: A trust-building factor for legal-compliant crypto exchange

Though the onset of Decentralized finance applications is in emerging markets, custodial operations based on centralized crypto exchanges are embellishing the trend. As they enhance usability, there are drawbacks involving a lack of transparency in the transactions as well as risks in managing the crypto funds.

Adopting the third-party verification system that periodically monitors and regulates the balances check in both wallets and asset reserves. Since this mechanism is automized and runs without the indulgence of assistance, it highly enhances the trust factor among users. Firmly establishing transparency in the custodial operations of crypto exchanges without the presence of blockchains and smart contracts becomes the major league.

Get started now with your Proof of reserve auditing software-based centralized crypto exchange to inculcate guardianship of your user's assets safely.

Get PoR for Crypto Exchange

Proof of Reserve on Blockchain - Its implication attains high transparency!

Zero risk and high automationInstigate highly automized audits and attestation into your decentralized application to reduce the risk and efficiency via circuit breakers.

Transparency leveled upProducing periodic and robust on-chain reserve audits to increase transparency when compared to conventional audits.

Lower-rank system failuresAssessing the on-chain and off-chain collateral reserves to diminish the risks and failures thus safeguarding users from unfavorable fractional reserve activity.

Proof of Reserve on Blockchain: Know the classification

Proof of reserve for off-chain assets Proof of reserve for cross-chain assets
The assets reserve balance is monitored under our programmed network protocols. The asset reserve balance on miscellaneous blockchains is verified by our programmed network protocols.
Information about any collateralized off-chain assets is produced from the crypto exchange. Information about any collateralized off-chain assets is produced from the crypto exchange.
Through transactions update, there could be modifications in the existing data which will impact the proof of reserve contracts. Through transactions update, there could be modifications in the existing data which will impact the proof of reserve contracts.
DApps of crypto exchanges automatically will produce auditing reports of the reserve as per the requirements of users. DApps of crypto exchanges automatically will establish auditing reports on the assets as per the requirements of the users.
When the asset value is more collateralized, then a successful transaction is activated. When the asset value is more collateralized then a successful transaction is activated.
While the asset value is lower-rankly collateralized, then the transaction failure is activated. When the asset value is lower-rankly collateralized, then the transaction failure is activated.

Proof of Reserves Audit - Operating procedure

Substantiating ownership of Address

For the assets which are extensively used for substantiating reserves, it is ensured by us that the ownership of either hot or cold wallet belongs to Binance.

Snapshots are taken to witness

The snapshot value is reckoned on the basis of assets held in the user’s spot, Funding, earn, margin, future, and options wallet balances clustered in the data and time corner of the snapshot.

Depicting a Merkle Tree

a. We submit the underpinnings such as the data block by connecting the hashed UID and balance of every user asset. Then we produce a Merkle Tree which tracks all the users’ data.
b. The root of the Merkle Tree will get modified whenever any account ID or balance in the leaf node alters.
c. Each and every user could substantiate and ensure whether their assets are added to the lead node.


Third-party authentication support is yet to be implemented…

Diverse applications of Proof of Reserve to explore and research with Appdupe

  • Digitized Assets: Assurance for a stablecoin, CBDCs, and wrapped cross-chain assets are kept as a backup.

  • Circuit Breakers: Promote a failsafe to eradicate under collateralization.

  • Noble Financial Services: Establish completely transparent on-chain financial devices and products.

  • Cross-chain Tokenization: Get collateralized data on any cross-chain asset over any other miscellaneous blockchain.

Frequently asked questions (FAQ)

Assets can only be considered reserves when they hold a strong liquidity profile. Prominent reserves are bitcoin, ether, and stablecoins like tether, USD coin, Binance USD, and dai.
This is a certification produced on the basis of periodic assessments of asset balances in custodial crypto exchanges. This certification is usually proffered by a third-party authenticating agency. This piece of information of real-time attestation is updated many times per day whereas the periodic attestation is produced once a month, quarter, or bi-annually.
Yes, auditors must have to review the reserves just like it happens in a conventional financial body as they exploit industrially-certified accounting standards and ensure the submission of third-party affirmation.

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