bitcoin
Bitcoin (BTC) $ 17,225.09
ethereum
Ethereum (ETH) $ 1,281.59
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 290.01
usd-coin
USD Coin (USDC) $ 1.00
binance-usd
Binance USD (BUSD) $ 0.999560
xrp
XRP (XRP) $ 0.392230
dogecoin
Dogecoin (DOGE) $ 0.098171
cardano
Cardano (ADA) $ 0.314995
matic-network
Polygon (MATIC) $ 0.925808
polkadot
Polkadot (DOT) $ 5.44
staked-ether
Lido Staked Ether (STETH) $ 1,266.00
litecoin
Litecoin (LTC) $ 77.08
shiba-inu
Shiba Inu (SHIB) $ 0.000009
okb
OKB (OKB) $ 20.96
dai
Dai (DAI) $ 1.00
solana
Solana (SOL) $ 13.72
tron
TRON (TRX) $ 0.054002
uniswap
Uniswap (UNI) $ 6.19
avalanche-2
Avalanche (AVAX) $ 13.40
leo-token
LEO Token (LEO) $ 3.82
chainlink
Chainlink (LINK) $ 7.03
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 17,208.45
cosmos
Cosmos Hub (ATOM) $ 9.80
the-open-network
Toncoin (TON) $ 1.82
monero
Monero (XMR) $ 147.26
ethereum-classic
Ethereum Classic (ETC) $ 19.17
stellar
Stellar (XLM) $ 0.085508
bitcoin-cash
Bitcoin Cash (BCH) $ 111.80
quant-network
Quant (QNT) $ 122.26
crypto-com-chain
Cronos (CRO) $ 0.064758
algorand
Algorand (ALGO) $ 0.225212
filecoin
Filecoin (FIL) $ 4.43
near
NEAR Protocol (NEAR) $ 1.70
apecoin
ApeCoin (APE) $ 3.94
vechain
VeChain (VET) $ 0.019090
hedera-hashgraph
Hedera (HBAR) $ 0.047980
internet-computer
Internet Computer (ICP) $ 4.31
eos
EOS (EOS) $ 1.00
trust-wallet-token
Trust Wallet (TWT) $ 2.61
flow
Flow (FLOW) $ 1.04
elrond-erd-2
MultiversX (Elrond) (EGLD) $ 45.03
terra-luna
Terra Luna Classic (LUNC) $ 0.000174
frax
Frax (FRAX) $ 1.00
the-sandbox
The Sandbox (SAND) $ 0.594627
axie-infinity
Axie Infinity (AXS) $ 8.15
tezos
Tezos (XTZ) $ 1.00
aave
Aave (AAVE) $ 63.15
theta-token
Theta Network (THETA) $ 0.872707
huobi-token
Huobi (HT) $ 6.54

Binance CEO CZ begins working on Vitalik Buterin’s ‘safe CEX’ ideas

0

- Advertisement -


The collapse of numerous major crypto ecosystems in 2022 revealed the urgent need for revamping the way crypto exchanges operate. Ethereum co-founder Vitalik Buterin believed in exploring beyond “fiat” methods to ensure the stability of crypto exchanges, including technologies such as Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARKs). 

Following a discussion with angel investor Balaji Srinivasan and crypto exchanges such as Coinbase, Kraken and Binance, Buterin recommended options for the creation of cryptographic proofs of on-chain funds that can cover investor liabilities when required, also known as safe centralized exchanges (CEX).

The best case scenario, in this instance, would be a system that does not allow crypto exchanges to withdraw a depositor’s funds without consent.

Fellow crypto entrepreneur CZ, who has been vocal about Binance’s intent for complete transparency, acknowledged the importance of Buterin’s recommendations, stating:

“Vitalik’s new ideas. Working on this.”

The earliest attempt to ensure fund safety was proof of solvency, wherein crypto exchanges publish a list of users and their corresponding holdings. However, privacy concerns eventually fueled the creation of the Merkle tree technique — which dampened the privacy leakage concerns. While explaining the inner workings of the Merkle tree implementation, Buterin explained:

“The Merkle tree technique is basically as good as a proof-of-liabilities scheme can be, if only achieving a proof of liabilities is the goal. But its privacy properties are still not ideal.”

As a result, Buterin placed his bets on cryptography via zk-SNARKs. For starters, Buterin recommended putting users’ deposits into a Merkle tree and using a zk-SNARK to prove the actual claimed value. Adding a layer of hashing to the process would further mask information about the balance of other users.

Buterin also discussed implementing proof of assets for confirming an exchange’s reserves while weighing the pros and cons of such a system, considering that crypto exchanges hold fiat currencies and the process would require crypto exchanges to rely on trust models better suited for the fiat ecosystem.

While long-term solutions will need the involvement of multisignature and social recovery wallets, Buterin pointed out two alternatives for the short-term — custodial and noncustodial exchanges, as shown below:

Two short-term options for alternatives for safe CEX. Source: hackmd.io (via Vitalik Buterin)

“In the longer-term future, my hope is that we move closer and closer to all exchanges being non-custodial, at least on the crypto side,” added Buterin. On the other hand, highly centralized recovery options can be used for wallet recovery for small funds.

Related: Crypto self-custody a ‘fundamental human right’ but not risk-free: Community

On Nov. 4, Buterin added a new category of milestones to the Ethereum technical roadmap — aimed at improving censorship resistance and decentralization of the Ethereum network.

The updated technical roadmap now inserts the Scourge as a new category, which will run parallel to other previously-known segments — the Merge, the Surge, the Verge, the Purge and the Splurge.





Source link

- Advertisement -

Leave A Reply

Your email address will not be published.

Shares