SECURITY SOLUTIONS
CRYPTO SETS HIGHER STANDARDS FOR PROOF OF RESERVES FOR TRADITIONAL FINANCE
The future of the crypto industry is one step closer to its full potential , now trust and transparency is at the forefront , said Bybit CEO , Ben Zhou . According to Zhou , technology will lead the way in restoring trust in crypto , and legitimate exchanges have what it takes to outperform traditional financial institutions in terms of transparency .
Speaking as part of a panel discussion at Blockchain Life 2023 in Dubai , Zhou proposed leveraging the open nature and real-time verification that decentralised technology offers . Blockchain is part of the solution and crypto-native solutions can help armour the financial industry against traditional and new forms of fraud risk . He noted that crypto exchanges are able to offer real-time , verifiable proof of reserves – which is far and above the transparency traditionally offered by financial institutions .
Bybit is committed to managing user funds with the utmost transparency and integrity , which is why it has realtime proof of reserves with a purposebuilt Merkle Tree . Users can use their Merkle Leaf code to check that their assets are recorded as liabilities in Bybit ’ s on-chain wallets down to the granular details .
For Zhou , this kind of technology – powered by blockchain – is the real solution to the constant news of malfeasance in the crypto and wider financial sector . The new industry norm of proof of reserves can offer users more peace of mind and visibility into exchanges ’ assets and this has tilted the conventional power dynamics between the customers and financial service providers .
Zhou went on to talk about the role – of crypto exchanges as the industry moves forward from a challenging 2022 . While security considerations are given , Zhou revealed why CEXs are still preferred by serious traders : deep liquidity and powerful infrastructure with millisecond precision .
Referring to institutional clients and professional traders , Zhou said : “ Centralised exchanges are pretty much their only choice simply because of the liquidity . And you simply can ’ t do high-frequency trading on a decentralised exchange ( DEX ) due to infrastructure limitations .”
However , Zhou suggested that those interested in medium-to-long-term trades could consider DEXs as an option .
" Our role – and that of any centralised exchange – is to be ready for mass adoption and be the gateway to Web 3.0 when it happens . So , I still believe in the industry ," Zhou added . " In two years , you will see signs of mass adoption . Your uncles , your aunties and your cousins will all start to use crypto .” � www . intelligentfin . tech
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