If you have 1 million clients for the company to cheat in 100 accounts, like to not include 100 people on purpose, if 5% of the population checks, they will be caught. You can cheat by omitting one account. If you know, this user will never check. This is obvious. However, we have to talk with asymptotics now. The real attack is if they are doing this like continuously and they're actually removing many balances from the Merkel tree. We realized that even with a small portion of people checking the inclusion proof, it would suffice. It would be OK. So these presenters, to tell the truth, have arise between depending on the population from 2
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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