{"id":70906,"date":"2022-12-02T15:41:23","date_gmt":"2022-12-02T13:41:23","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=70906"},"modified":"2025-09-08T04:55:36","modified_gmt":"2025-09-08T01:55:36","slug":"bitmex-unveils-liability-verification-solution","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bitmex-unveils-liability-verification-solution\/","title":{"rendered":"BitMEX unveils liability verification solution"},"content":{"rendered":"<p>The cryptocurrency exchange BitMEX has unveiled a <span data-descr=\"proof of liability\" class=\"old_tooltip\">Proof-of-Liability<\/span> feature. It enables users to verify the platform&#8217;s liabilities to them within the total balance.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">[1\/4] BitMEX\u2019s PoL System Now Live &#038; Operational<\/p>\n<p>All BitMEX depositors can now verify their individual liability is included in the total exchange liability balance. This self verification process can be conducted without a third party auditor.<a href=\"https:\/\/t.co\/1z5MJ2nlVK\">https:\/\/t.co\/1z5MJ2nlVK<\/a><\/p>\n<p>\u2014 BitMEX Research (@BitMEXResearch) <a href=\"https:\/\/twitter.com\/BitMEXResearch\/status\/1598307402390147073?ref_src=twsrc%5Etfw\">December 1, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The company updates the data twice a week: on Tuesdays and Thursdays.<\/p>\n<p>The solution uses a cryptographic algorithm called <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-merkle-tree\">Merkle tree<\/a>. To view the information, clients can use the accountNonce value to obtain multiple snapshots, or enter one-time codes for each account snapshot.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/ZAJLAHN70-ig-REnhi-Yiw1Ess6u3nk4i_rmAAfCinjEWlMZKJP5IGhRPoYjVVU0O6hmjdZG8r70aYyt-ik4a6nwSnbqQ8Mho8S3enXBsbNUBLkqIauPDeDIU0J_jxqUgu9v4mol4TSJVwA7OlX2BNFATevBCMjfV-72peZkZiiH4BRP8ieZUvRHDivSuw\" alt=\"BitMEX implements liability verification solution\"\/><figcaption>Source: BitMEX.<\/figcaption><\/figure>\n<p>Following <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\">FTX collapse<\/a>, the largest exchange by volume, Binance, first <a href=\"https:\/\/u1f987.com\/en\/news\/binance-discloses-details-of-its-cryptocurrency-reserves\">disclosed data on its own crypto reserves<\/a>, and then launched the <a href=\"https:\/\/u1f987.com\/en\/news\/binance-launches-proof-of-reserves-feature-for-bitcoin-holders\">Proof-of-Reserves<\/a> feature. The latter allows Bitcoin holders to verify that their funds on the platform are backed by corresponding asset volumes.<\/p>\n<p>For BitMEX, an example of the platform&#8217;s liabilities to a holder of roughly 0.1 BTC in an account looks as follows (the funds are reflected as four Merkle-tree leaves):<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/tDZJC5CnjBSOoSFdJu5R_5TjGwX4giHIQKkDTfySrdN1RI_sEL77T0eSVbPGmKFndPEOxI1XHdVgQA1eQZ-sIAqmeF9VAiZtmBzSIIcsR83guc0OETAY8SlzBkB2x8GUkugmN03bqcxseANVwWoNTSfDJYdknQdCQbm37UWA3anrDzZrhSYGPSmi5Bhcsg\" alt=\"BitMEX implements liability verification solution\"\/><figcaption>Source: BitMEX.<\/figcaption><\/figure>\n<p>Following Binance, a number of platforms published reserve data, including <a href=\"https:\/\/u1f987.com\/en\/news\/huobi-discloses-reserves-exchange-holds-assets-worth-3-5-billion\">Huobi<\/a>, <a href=\"https:\/\/u1f987.com\/en\/news\/bitfinex-discloses-reserves\">Bitfinex<\/a> and <a href=\"https:\/\/u1f987.com\/en\/news\/bybit-discloses-user-asset-holdings\">Bybit<\/a>.<\/p>\n<p>Kraken founder Jesse Powell criticized Binance&#8217;s Proof-of-Reserves. In his view, the feature does not prove that the exchange holds more bitcoins than its liabilities to customers.<\/p>\n<p>As Ethereum co-founder Vitalik Buterin has said, the <a href=\"https:\/\/u1f987.com\/en\/news\/vitalik-buterin-proposed-using-zk-snarks-to-verify-exchange-reserves\">use of zk-SNARKs<\/a> in this case would yield a better result than a Merkle tree.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news in our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cryptocurrency exchange BitMEX has introduced the Proof-of-Liability feature. It lets users verify the platform&#8217;s liabilities to them in the overall balance.<\/p>\n","protected":false},"author":1,"featured_media":70907,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[788,1166],"class_list":["post-70906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitmex","tag-centralized-exchanges-cex"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=70906"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70906\/revisions"}],"predecessor-version":[{"id":70908,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70906\/revisions\/70908"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/70907"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=70906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=70906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=70906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}