Last week, Bybit unveiled a new system that will enable its customers to check that the crypto assets the exchange platform holds are accurate.
Utilizing Merkle Trees, a type of data structure for on-chain verification, Bybit’s proof of reserves system allows customers with funds on the platform to verify that it holds 100% of their assets.
Using a Merkle Tree-based system, customers of Bybit can now analyze the platform’s reserve ratio to confirm that it holds enough assets to cover the balances of its users.
This security measure has been implemented in the wake of the FTX collapse and is reflected in the reserve ratio of 1:1, according to the announcement on Saturday.
Furthermore, the public can view Bybit’s wallet addresses on their website and the Nansen dashboard.
Bybit is the most recent crypto exchange to introduce a method for users to confirm its holdings after the FTX bankruptcy occurred.
Binance and Crypto.com have likewise revealed their own proof-of-reserves declarations in response to customers withdrawing large sums of money out of fear of other crypto exchange’s fiscal stability.
These reports have created further skepticism for some platforms, such as Gate.io and Huobi, after their audits indicated the presence of borrowed funds.