Tag: Proof of Reserves

Blockchain transparency is a prominent narrative in the Web3 space. Crypto exchanges are using Proof of Reserves audits and Merkle Trees to try and restore investor confidence after the collapse of FTX. This lack of confidence can be explained by the misuse of customer deposits by the second-largest crypto exchange in the world. Merkle trees hold the key to unlocking transparency among crypto exchanges. But, how do they work?