5 ms·

Kraken is actually pretty far ahead — proof of reserves: https://www.kraken.com/proof-of-reserves https://www.kraken.com/proof-of-reserves Jesse Powell also en

• vkou 4y ago
  Proof of reserves is worthless without proof of outstanding liabilities. And the only way you're going to provide the latter is through something called an audit.
  • olalonde 4y ago
    There's also a cryptographic way: https://syskall.com/proof-of-liabilities/#what https://syskall.com/proof-of-liabilities/#what
    • vkou 4y ago
      No on-chain solution is ever going to prove that your exchange doesn't owe a trillion dollars to a third party. You need an audit for that. An audit. One of those things that has been done for centuries and millennia. It's not rocket science, it just consists of paying an accounting firm to look at your books.
      • throwaway290 4y ago
        (That, and having said books:)
• georgeecollins 4y ago
  This is just a web page describing a process that is not an audit of Kraken. If a company isn't audited by a third party who assumes liability for being wrong there are all kinds of things that could blow up. This web page is also a great example of using financial speak to make it sound like they are doing the things that are considered important in their own special non traditional way-- or really-- without actually doing them. Who wants their account audited? Does your bank do that? I want the bank audited.