OKX: Proof of Reserves is Future of CEX industry

cryptonews.com:

It's opening morning at London's Blockchain Economy Summit - the UK's largest gathering of crypto and blockchain companies. And Centralised Exchanges are a hot topic.

In the aftermath of the collapse of FTX - conference debate is centring on the future of the CEX sector.

Shaping the debate is Lennix Lai - Managing Director of OKX.

Lai opened the conference with an impassioned presentation on the future of transparency for the CEX industry. Highlighting the technology being developed by OKX to help prevent another monumental CEX collapse.

"[Blockchain is] offering a new financial system for humanity … with the ability to solve issues of financial inclusion," said Lai.

But to achieve this mass adoption. Against a backdrop of ramped-up efforts by regulators to pin-down this rapidly emerging industry. It is necessary for CEXs to meet regulatory agencies in the middle.

Working together to introduce technologies that build more trust and transparency into the industry.

OKX is pioneering this field - as Lai revealed freshly incorporated Proof of Reserve (PoR) technology on the world's second largest exchange.

This creates a system that enables user verification of their funds.

Using Merkle Tree data structures, PoR technology is able to disclose the total balance of a user's assets. While simultaneously checking this against on-chain snapshots of connect wallet addresses.

The results are impressive claimed Lai. Affording the ability to reveal the exact total of all user funds on the exchange, and verifying the existence of 1:1 CEX reserves.

In a practical demonstration, Lai revealed that OKX has $8.6bn in reserve to match 1:1 user deposits over the past 4 months.

Gone are the days of expensive hit-or-miss audits. This technology offers a