Ethereum co-founder Vitalik Buterin shared his suggestion for the crypto exchanges to use reliable tech tools to show the crypto reserves holdings.
As we know, FTX collapsed badly recently, and also the exchange filed for bankruptcy on 8 November in a US district court. Due to the downfall of the FTX exchange, the majority of the crypto investors are trying to get out from the centralized crypto platforms, to remain away from any kind of big risks. In this critical situation, the majority of the crypto exchanges are showing the on-chain reserves holdings of the user’s funds, to regain the trust of the customers again.
On 19 November, Vitalik Buterin, co-founder of the Ethereum blockchain & also a crypto leader, shared a suggestion for the crypto exchanges to adopt some better blockchain tools to regain the customers’ trust again and with a better confidence.
In particular, Vitalik suggested centralized exchanges to achieve trustlessness involving zero-knowledge Succinct Non-Interactive Argument of Knowledge (ZK-SNARKs), and other advanced technologies.
Vitalik noted that Crypto exchanges also have huge numbers of crypto & blockchain talents to develop a dedicated blockchain tech solution to show reserves, instead to get fiat concept-based licenses or any kind of custody solutions.
Binance, Coinbase, and Kraken, along with a16z general partner Coinbase CTO Balaji Srinivasan contributed to this suggestion post of Vitalik.
On the same day, Changpeng Zhao, CEO & founder of Binance Crypto exchange, informed his followers that Binance is working on a new idea of Vitalik Buterin. He also confirmed that he was not able to understand the each question & proposed solution but still his team confirmed that they can develop & implement the same.
The proposed tech resolutions by the Ethereum co-founder are mainly focusing on non-custodial-based solutions. And the tech solutions will be open-source for the devs, which means any crypto exchange will be able to access the source code to use & implement in their corresponding crypto platform.