The bankruptcy of the Exchange FTX caused the cryptocurrency sector to suffer. This incident prompted exchange platforms to offer more transparency and security. But then, how can we ensure that the funds you place on the exchange platforms are safe? Bitvavo, the European leader, has opted for the implementation of proof of reservations (POR). Thus, the Bitvavo platform reassures its users. Find out how this mechanism works precisely, and why it is a key element to guarantee the confidence and serenity of its customers. Let’s go!
The Coin Journal offers this promotional article in collaboration with Bitvavo.
Proof of reservations (POR): a guarantee of transparency and confidence for users
Not everyone does not make earnings on the financial markets. However, it is not acceptable to lose one’s funds because of an exchange that manages irresponsibly. It is for this reason that the Proof of reservations (POR) is essential to establish a climate of trust.
To put it simply, a proof of reservations is a mechanism allowing users of a platform to ensure that funds deposited by customers are well detained by exchange platforms.
Adopting a system of proof of reserves is sending a clear message to users: their funds are safe. Bitvavo has understood this, and we will see that the Exchange manages his funds in a responsible manner.
Bitvavo: a safety and transparency model
If you do not know Bitvavo, it is an exchange platform that is very good developed in Europe. Indeed, in 2024, she, for example, exceeded certain market jugns like Binance or Coinbase By recording 100 billion exchange volumes in Euro. It also offers a varied range with more than 385 different cryptocurrencies.
Bitvavo plays the card of the transparency. She wishes to guarantee her customers that their funds are in good hands. In fact, some cryptocurrencies display a equivalent reserve rate or more than 100 %. This means that each euro or crypto filed on the platform is Covered by Bitvavo reserves. This is particularly the case for Bitcoin (BTC), Ethereum (ETH) or Solana (Sol):
On the other hand, how to ensure the veracity of this information ?
Bitvavo calls on a Independent accounting office For Certify its proofs of reserves. The rates are updated every quarter, and customers can of course Download the certificate reports. If you want to consult this type of document on Bitvavo, go to « Profile », then « Security », then « Proof of reserves »and select a period. Once it is done, it is possible to Download a document with the summary of proof of reservations. In addition, the data is organized in a Merkle treeallowing thedata integrity.
A Merkle tree is an intelligent way oforganize and check a large number of datalike the User sales. Finally, it makes it possible to group all this data in a unique structure, which is also immutable. The interest of this device? Offer a Clear, rapid and unfarable proof of reserveswithout revealing the private details of each user.
Finally, in just a few minutes, each user of the Bitvavo platform has the possibility of checking whether their funds are well covered by the platform. This system of proof of reservations, validated by an independent third party and supported by Merkle trees technology, guarantees total transparency and authenticity of the data. Bitvavo thus shows an example in the crypto industry: the safety of user funds should never be an option, but a standard.