Crypto security: Could the combo of PoR and SAFU funds be the answer?

[Jascrypt]

The recent FTX debacle sent shockwaves through the crypto world, prompting top exchanges to take immediate action to enhance security and accountability. Among these measures, Proof of Reserve (PoR) and SaFu funds have emerged as popular strategies.

Proof of Reserve is now referred to as the Pillar of Transparency because it's a cryptographic technique that allows exchanges to demonstrate that they hold sufficient assets to cover their customer liabilities. By publishing a Merkle tree, a data structure that efficiently verifies the integrity of a large dataset, exchanges can prove that they have the necessary reserves to back their users' funds.

SaFu Funds also known as customer protection funds on the other hand is a Safety Net for Users cos  it demands a pool of assets is set aside by exchanges to protect users funds in the event of a security breach or insolvency. These funds are typically held in a separate wallet and are not used for trading or other business operations.

I feel these two factors should be worth considering when choosing a good exchange cos while PoR provides a snapshot of an exchange's financial health at a specific point in time, SaFu funds offer a more comprehensive safety net that can protect users in a wider range of scenarios.

Few exchanges like Binance, OKX and particularly, Bitget who recently took this hybrid initiative by implementing both Proof of Reserve and a Users Protection Fund seems to have enjoyed some decent trading volume on their platform according to quarterly and annual report by token Insight and coingecko. This dual protection strategy may be the way forward to avoid the FTX-like debacle in the future and it also provides users with the assurance of knowing that their assets are backed by both cryptographic verification and a dedicated pool of funds.

As the crypto landscape is fast evolving and improving from setbacks everyday should we rely on these two security concept and say we are a bit safe to trade on few of these exchanges that are committed to users assets security?

[NeuroticFish]

The recent FTX debacle sent shockwaves through the crypto world, prompting top exchanges to take immediate action to enhance security and accountability. Among these measures, Proof of Reserve (PoR) and SaFu funds have emerged as popular strategies.

Proof of Reserve is now referred to as the Pillar of Transparency because it's a cryptographic technique that allows exchanges to demonstrate that they hold sufficient assets to cover their customer liabilities. By publishing a Merkle tree, a data structure that efficiently verifies the integrity of a large dataset, exchanges can prove that they have the necessary reserves to back their users' funds.

SaFu Funds also known as customer protection funds on the other hand is a Safety Net for Users cos  it demands a pool of assets is set aside by exchanges to protect users funds in the event of a security breach or insolvency. These funds are typically held in a separate wallet and are not used for trading or other business operations.

I feel these two factors should be worth considering when choosing a good exchange cos while PoR provides a snapshot of an exchange's financial health at a specific point in time, SaFu funds offer a more comprehensive safety net that can protect users in a wider range of scenarios.

Few exchanges like Binance, OKX and particularly, Bitget who recently took this hybrid initiative by implementing both Proof of Reserve and a Users Protection Fund seems to have enjoyed some decent trading volume on their platform according to quarterly and annual report by token Insight and coingecko. This dual protection strategy may be the way forward to avoid the FTX-like debacle in the future and it also provides users with the assurance of knowing that their assets are backed by both cryptographic verification and a dedicated pool of funds.

As the crypto landscape is fast evolving and improving from setbacks everyday should we rely on these two security concept and say we are a bit safe to trade on few of these exchanges that are committed to users assets security?

Isn't this is pretty much the same question as Could protection funds restore investors confidence back to CEX?
I start to have the feeling that somebody is paying for these "questions"....

[alterra57]

The recent FTX debacle sent shockwaves through the crypto world, prompting top exchanges to take immediate action to enhance security and accountability. Among these measures, Proof of Reserve (PoR) and SaFu funds have emerged as popular strategies.

Proof of Reserve is now referred to as the Pillar of Transparency because it's a cryptographic technique that allows exchanges to demonstrate that they hold sufficient assets to cover their customer liabilities. By publishing a Merkle tree, a data structure that efficiently verifies the integrity of a large dataset, exchanges can prove that they have the necessary reserves to back their users' funds.

SaFu Funds also known as customer protection funds on the other hand is a Safety Net for Users cos  it demands a pool of assets is set aside by exchanges to protect users funds in the event of a security breach or insolvency. These funds are typically held in a separate wallet and are not used for trading or other business operations.

I feel these two factors should be worth considering when choosing a good exchange cos while PoR provides a snapshot of an exchange's financial health at a specific point in time, SaFu funds offer a more comprehensive safety net that can protect users in a wider range of scenarios.

Few exchanges like Binance, OKX and particularly, Bitget who recently took this hybrid initiative by implementing both Proof of Reserve and a Users Protection Fund seems to have enjoyed some decent trading volume on their platform according to quarterly and annual report by token Insight and coingecko. This dual protection strategy may be the way forward to avoid the FTX-like debacle in the future and it also provides users with the assurance of knowing that their assets are backed by both cryptographic verification and a dedicated pool of funds.

As the crypto landscape is fast evolving and improving from setbacks everyday should we rely on these two security concept and say we are a bit safe to trade on few of these exchanges that are committed to users assets security?

Isn't this is pretty much the same question as Could protection funds restore investors confidence back to CEX?
I start to have the feeling that somebody is paying for these "questions"....

They're bots. There's so many of these accounts around here and nobody bans them.

[Jascrypt]

The recent FTX debacle sent shockwaves through the crypto world, prompting top exchanges to take immediate action to enhance security and accountability. Among these measures, Proof of Reserve (PoR) and SaFu funds have emerged as popular strategies.

Proof of Reserve is now referred to as the Pillar of Transparency because it's a cryptographic technique that allows exchanges to demonstrate that they hold sufficient assets to cover their customer liabilities. By publishing a Merkle tree, a data structure that efficiently verifies the integrity of a large dataset, exchanges can prove that they have the necessary reserves to back their users' funds.

SaFu Funds also known as customer protection funds on the other hand is a Safety Net for Users cos  it demands a pool of assets is set aside by exchanges to protect users funds in the event of a security breach or insolvency. These funds are typically held in a separate wallet and are not used for trading or other business operations.

I feel these two factors should be worth considering when choosing a good exchange cos while PoR provides a snapshot of an exchange's financial health at a specific point in time, SaFu funds offer a more comprehensive safety net that can protect users in a wider range of scenarios.

Few exchanges like Binance, OKX and particularly, Bitget who recently took this hybrid initiative by implementing both Proof of Reserve and a Users Protection Fund seems to have enjoyed some decent trading volume on their platform according to quarterly and annual report by token Insight and coingecko. This dual protection strategy may be the way forward to avoid the FTX-like debacle in the future and it also provides users with the assurance of knowing that their assets are backed by both cryptographic verification and a dedicated pool of funds.

As the crypto landscape is fast evolving and improving from setbacks everyday should we rely on these two security concept and say we are a bit safe to trade on few of these exchanges that are committed to users assets security?

Isn't this is pretty much the same question as Could protection funds restore investors confidence back to CEX?
I start to have the feeling that somebody is paying for these "questions"....

They're bots. There's so many of these accounts around here and nobody bans them.

Why do you have such assertion about me. I did saw few info about the topic feel like sharing my input and I feel it's unfair for to have such assertion. What happens to FoI mate?

[Jascrypt]

The recent FTX debacle sent shockwaves through the crypto world, prompting top exchanges to take immediate action to enhance security and accountability. Among these measures, Proof of Reserve (PoR) and SaFu funds have emerged as popular strategies.

Proof of Reserve is now referred to as the Pillar of Transparency because it's a cryptographic technique that allows exchanges to demonstrate that they hold sufficient assets to cover their customer liabilities. By publishing a Merkle tree, a data structure that efficiently verifies the integrity of a large dataset, exchanges can prove that they have the necessary reserves to back their users' funds.

SaFu Funds also known as customer protection funds on the other hand is a Safety Net for Users cos  it demands a pool of assets is set aside by exchanges to protect users funds in the event of a security breach or insolvency. These funds are typically held in a separate wallet and are not used for trading or other business operations.

I feel these two factors should be worth considering when choosing a good exchange cos while PoR provides a snapshot of an exchange's financial health at a specific point in time, SaFu funds offer a more comprehensive safety net that can protect users in a wider range of scenarios.

Few exchanges like Binance, OKX and particularly, Bitget who recently took this hybrid initiative by implementing both Proof of Reserve and a Users Protection Fund seems to have enjoyed some decent trading volume on their platform according to quarterly and annual report by token Insight and coingecko. This dual protection strategy may be the way forward to avoid the FTX-like debacle in the future and it also provides users with the assurance of knowing that their assets are backed by both cryptographic verification and a dedicated pool of funds.

As the crypto landscape is fast evolving and improving from setbacks everyday should we rely on these two security concept and say we are a bit safe to trade on few of these exchanges that are committed to users assets security?

Isn't this is pretty much the same question as Could protection funds restore investors confidence back to CEX?
I start to have the feeling that somebody is paying for these "questions"....

Yeah, I did saw that and that where I decided to write something similar with more findings. Was I wrong doing that?

[Husires]

Proof of Reserve (PoR) and SaFu funds all give a false sense of security, but they are not true, as there is no way to verify that these companies will guarantee your money if a hack occurs or it is invested incorrectly. Therefore, if you want to invest huge amounts of money, it is better to invest in an ETF. Or withdraw your money once you purchase.

[Jascrypt]

Therefore, if you want to invest huge amounts of money, it is better to invest in an ETF. Or withdraw your money once you purchase.

That has been the way; buy on CEXes and send them to my wallet and hodl till when is the right time to sell them again except the little meant for trading which demands due diligence to get close to a safe one.