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Nic Carter on Crypto Contagion, Proof of Reserves, FTX Clawbacks? & Bitcoin Miner Solvency

Coin Stories

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How Does Proof of Reserves Really Work?

A lot of people are now calling for proof of reserve. It refers to an entity that is custodial holding some third-party coins on their behalf, they do a cryptographic attestation to coins held. The more complex side is the proof of liabilities, which you want the liabilities to correspond exactly to the assets held. Most exchanges have not actually fully carried them out but they have indicated their desire to do it.

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