This brings up a little extra question, which is like you'd have to do this for each currency, wouldn't you? Like each blockchain would need to run something like this because when you talk about accounts and being on chain, it's not that it's joined across Bitcoin versus Ethereum even. Wouldn't you have to run it twice? Can you have one user having just one tree for all of their assets? This is a very difficult problem because there is an exchange rate between them,. Different exchanges might have a different exchange rate. It's not easy to do this at the moment. What we have is individual market risk per asset.
This week, Anna explores the topic of proof of solvency with Kostas Chalkias, co-founder and chief of Cryptography at MystenLabs. They cover Kostas’ background in Cryptography and explore his work on Proof of Reserves, otherwise known as Proof of Solvency. They review past Proof of Solvency models using ZKPs and look at the protocols that major centralized exchanges are currently using. Then they dive into the security vulnerabilities, privacy issues, and general bugs that Kostas and his collaborators have identified in these protocols and their recommendations on how to better build Proof of Solvency systems.
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Today’s episode is sponsored by Aleo
Aleo is a new Layer-1 blockchain that achieves the programmability of Ethereum, the privacy of Zcash, and the scalability of a rollup.
If you’re interested in building private applications then check out Aleo’s programming language called Leo. Visit leo-lang.org to start building.
You can also join Aleo’s incentivized testnet3 by downloading and running a snarkOS node. No sign-up is necessary to participate. For questions, join their Discord at aleo.org/discord.
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