Can crypto exchagnes regain users trust with PoR?

[Jating]

Indeed, when viewed from the point of view of Proof of Reserves, it is to give more confidence to investors and their customers so that they believe that this exchange still has reserve funds.  This seems to be a very effective way of letting clients know more about the exchanges they trade on

How about new exchanges though? obviously they don't have the money to begin with since they are just starting on the business, what proof they should show us?

So for me this PoR is just good in papers for this exchanges, and we really don't know if this exchanges has the real funds anyone, they can play with it, I mean giving us false data, maybe it's not their real funds to begin with.

Yeah, I read though that Binance has started it, but they only show BTC only, and they say that next is all other assets.

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[nimogsm]

Since Proof of Reserve is a new thing it would be too soon to say whether it is enough to regain user trust.
It also depends on what is the proof of reserve and it's significance on the users.
But I must say that Binance has played it really smart. They have gone to the safer side with the PoR.
It is at least better than no audit at all.

It was the best decision at that time because reputation is very important. The pros are that other exchanges have also followed suit and shown their reserves to convince their users of the security of their assets.Another thing is how they will manage these reserves in case of unforeseen circumstances, I really hope that we will not catch this moment.

[dothebeats]

I think this isn't enough for an exchange to win the trust of its patrons. Letting other people know that you have X amount of reserves for your stablecoin is one thing, and just being a trustworthy exchange is another. People will never bother checking yet another coin if PoR is tokenized (lol) if they already know the exchange has its stablecoins. Knowing how much money the exchange has in reserves is a good to know info, but I guess for the most part it doesn't really matter to us normal users (except if the platform has its own stablecoins).

[BIT-BENDER]

Well firstly crypto exchanges never lost the trust of Crypto-currency enthusiast. Dont generalize it. I have been using crypto-currency exchange and i havent had any distrust.

Well what i have noticed is that this has to do with centralized exchange like FTX and binance, right now its best to use decentralized exchanges. Because its most secured and your privacy is protected.

[Silberman]

Indeed, when viewed from the point of view of Proof of Reserves, it is to give more confidence to investors and their customers so that they believe that this exchange still has reserve funds.  This seems to be a very effective way of letting clients know more about the exchanges they trade on

In my opinion this is too little too late, exchanges are realizing the massive mistake they made by thinking that people will simply keep their coins with them all the time and that this will never change, proof of reserves is nothing but a gimmick, if they really have the reserves needed to pay all their customers then why do they care that people are getting their coins out of the wallets of exchanges and they are transferring them to their own wallets? They care because they are afraid of a bank run and they want to avoid this by presenting a small report that says everything is fine, which is worth nothing as it is information which comes from them and not a third party we can trust.

[LastKiss]

~snip~

Is PoR actually enough after all that has happened so far? 

Source: https://app.getresponse.com/view.html?x=a62b&m=BVGySe&mc=9I&s=BtgXWnG&u=QcLhh&z=EShzGUd&

That's won't be enough to get all those victims for FTX and LUNA collapse since they're losing a lot of money there, but at least we can get something progressing in our crypto space. The good thing with PoR we can see that will make the current investor keep believing in Centralized Exchange.

[bittraffic]

~snip~

Is PoR actually enough after all that has happened so far? 

Source: https://app.getresponse.com/view.html?x=a62b&m=BVGySe&mc=9I&s=BtgXWnG&u=QcLhh&z=EShzGUd&

That's won't be enough to get all those victims for FTX and LUNA collapse since they're losing a lot of money there, but at least we can get something progressing in our crypto space. The good thing with PoR we can see that will make the current investor keep believing in Centralized Exchange.

It could be enough if the PoR is more transparent. So far CZ only shows partial details of the PoR, they were not showing the liabilities which because of the number of users in Binance, there could be a lot of liabilities. AFAIK there are other exchanges that did show their PoR too but the same shenanigans.

But despite all there I guess we're still going to continue to trade on them. The Crypto industry will not die.

[Ayers]

Indeed, when viewed from the point of view of Proof of Reserves, it is to give more confidence to investors and their customers so that they believe that this exchange still has reserve funds.  This seems to be a very effective way of letting clients know more about the exchanges they trade on

How about new exchanges though? obviously they don't have the money to begin with since they are just starting on the business, what proof they should show us?

So for me this PoR is just good in papers for this exchanges, and we really don't know if this exchanges has the real funds anyone, they can play with it, I mean giving us false data, maybe it's not their real funds to begin with.

Yeah, I read though that Binance has started it, but they only show BTC only, and they say that next is all other assets.

How do they give us fake data? When they are all public, and you can check the assets they are holding. Blockchain technologies are supposed to be transparent and public, so if you don't trust them, does that mean that blockchains can be faked and scammed? I'm not defending them, but they're clearly trying to make things better and more transparent. We should support them rather than doubt and slander them.

[adaseb]

Like kraken ceo said multiple times. Proof of reserves is useless without proof of liabilities. This would make any exchange even FTX look solvent when you see they got $1b in reserves but have $10b in liabilities.

There are some exchanges such as kraken and Bitmex which actually have the proof of liabilities also shown and this is vital. I think moving forward many customers will be asking for this info when using a crypto exchange.

[kelonmusk]

Before implementing PoR, exchanges should think about the fact that it may not provide any additional security. From what I can tell, the premise behind PoR is that a public ledger (blockchain) is harder to falsify than a private ledger.

Although this sounds like a sensible idea, does it hold up when we consider the situation of exchange hacks?

Instead of moving all the coins to a single address, an attacker might move the majority to one address and send the remainder to smaller addresses on several different wallets or even exchanges. It would be difficult to track these stolen funds through blockchain analysis because they are split up among smaller wallets or exchanges.

I don't think that anyone would call Proof Of Reserves perfect. There are a number of issues with this mechanism, and it is quite accurate to say that no number of PoR reports can give us a full sense of an exchange's financial situation.

[Silberman]

~snip~

Is PoR actually enough after all that has happened so far? 

Source: https://app.getresponse.com/view.html?x=a62b&m=BVGySe&mc=9I&s=BtgXWnG&u=QcLhh&z=EShzGUd&

That's won't be enough to get all those victims for FTX and LUNA collapse since they're losing a lot of money there, but at least we can get something progressing in our crypto space. The good thing with PoR we can see that will make the current investor keep believing in Centralized Exchange.

But why do you believe that keeping people into believing in centralized institutions which can steal their coins at any moment is a good thing? In my opinion decentralized exchanges should become the standard of this industry, proof of reserves is nothing but a weak attempt by centralized exchanges to keep their power, and we must not let them get away with it, otherwise in a few more years we will see another scandal like this one, showing that we learned nothing from it.

[alexandr1115]

I really don't understand why this system was created?? Or what advantages does it give to the user? But you can also verify this transaction on the blockchain, what is the advantage? Maybe I don't understand something and I ask you to explain what the difference is! Who doesn't find it difficult!