Proof Of Reserves Is Crypto’s Key To Rebuilding Trust And Transparency

Opinion by: Lennix Lai, global chief commercial officer of OKX

More than three years after FTX’s collapse, the crypto industry must not forget that trust in our system depends on verifiable transparency. Arguably, that lesson matters more now than ever as we experience a period of volatility.

The idea behind proof of reserves (PoR) is simple yet powerful. Through transparent, onchain audits, exchanges can demonstrate that every customer balance is backed one-to-one by assets held in reserve. In the aftermath of FTX, PoR became a lifeline — a…