Proof of Reserves (PoR) is a method that exchanges use to show that they hold assets like cryptocurrencies and fiat cash. This is important for exchanges because it allows customers to verify that the exchange has the assets it claims to have, which helps to build trust and confidence in the exchange. It is an auditing technique that is provable using cryptographic proofs, checks of public wallet ownership, and recurrent audits to verify an exchange’s holdings. A proof of reserves report provides a snapshot of various exchange-owned assets, such as cryptocurrency holdings and fiat cash. Composition of Binance PoR assets. How does proof of reserve work? The process of proving reserves typically involves the use of cryptogr…