technology news August 26th morning news recently, the domestic bitcoin trading platform launched overseas business development, financing currency, virtual futures and other new trading form at the same time, bitcoin market downturn, once again raised questions about bitcoin holders trading platform. OKCoin, bitcoin China and fire currency network and other domestic three bitcoin trading platform launched a reserve verification system of 100% to ensure that the sudden emergence of a large number of bank deposits, there is sufficient liquidity.
in the traditional financial institutions, the reserve refers to the concept of commercial bank stock cash and deposit according to the proportion of deposited in the central bank, to ensure that the commercial banks in the face of sudden extraction of a large number of bank deposits, to have sufficient liquidity.
and bitcoin trading platform, the 100% reserve is the sum of the amount of bitcoin bitcoin platform and the user account is consistent. The 100% reserve open also means the safety of funds, trading platform to prove all users within the platform no funds are used by the platform itself, to avoid adverse consequences leading currency trading platform, run away in case of change.
100% reserve for the market, is a good thing, but at the same time, but also brings the user privacy concerns. How to take into account both the 100% reserves in the open way, each trading platform is not the same. The notary audit, the user through the Merkle tree verification system is currently the main way to verify.
August 24th, OKCoin 100% reserve verification system formally launched, including the notary audit and Merkle tree verification system in two ways to achieve the platform with Merkle Tree certified reserves of 100%.
in terms of notaries, OKCoin invited the cryptography and digital currency expert Stefan Thomas to conduct audits, he was also Bitfinex and Kraken percent of the reserves of auditors. By verifying the assets of all OKCoin wallet and all user account balances, in August 24th, OKCoin successfully completed the first audit.
addition, OKCoin platform to achieve the user self-examination system, that is, Merkle tree verification system. Merkle tree is composed of each user account as a verification system node, by the number of users to provide audit user account bitcoin and Merkle tree to all nodes on the root node of the hash, the user can confirm their bitcoin is included in the audit.
it is understood that OKCoin will hire different auditors in the future, or each time the use of a number of auditors, the audit on a regular basis.
bitcoin China’s program is a complete release of user database information (to remove user privacy information) to the witness, and through random sampling