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  • StarkWare verifies first zero-knowledge proof on Bitcoin

    StarkWare verifies first zero-knowledge proof on Bitcoin

    • StarkWare has verified the first zero-knowledge (ZK) proof on the Bitcoin.
    • It’s part of the core Starknet developer’s plans to scale Bitcoin for mass adoption.

    StarkWare has achieved a historic feat by completing the first zero-knowledge proof verification on the Bitcoin network, according to the details posted on X on Wednesday.

    The blockchain developer revealed that after months of exploring, its developers have managed to verify the first ZK proof using a new STARK verifier, Stwo Verifier on OP_CAT-enabled Bitcoin Signet. It’s the first of many steps in the quest to scale Bitcoin.

    Scale Bitcoin for mass use

    StarkWare announced in June that the company was looking to scale Bitcoin for mass adoption using ZK proofs. With the new scaling solution, dApps can decide to settle on Bitcoin or Ethereum.

    “Starknet will become the first network to settle simultaneously on Bitcoin and Ethereum and scale Bitcoin to many thousands of transactions per second. This will happen within six months after the potential Bitcoin upgrade, OP_CAT,” StarkWare CEO Eli Ben-Sasson wrote.

    StarkWare offered a $1 million application grant targeted at research efforts around an OP_CAT in June.

    “My dream is to see Bitcoin attain the scale it needs to serve everyone, constantly. This involves opening it up to participation for all, without financial barriers to entry. I believe it must happen with steadfast adherence to Satoshi’s insistence on decentralization and security,” Ben-Sasson added.

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  • Binance unveils its proof of reserves mechanism

    Binance unveils its proof of reserves mechanism

    • Binance’s proof of reserves system initially shows results for the flagship cryptocurrency Bitcoin.
    • The crypto exchange will add other tokens and networks as well as implement ZK-SNARKs.
    • Crypto exchanges are looking to show they have the assets they should hold after the shocking collapse of FTX.

    Binance has published its proof-of-reserve (PoR) system, days after CEO Changpeng Zhao pledged to have the mechanism in place following the collapse of rival FTX.

    The bankruptcy and the contagion that followed crashed the market, with Binance Coin price dropping to lows of $250. Bitcoin price also fell below $16,000, hitting its lowest level since 2020.

    In response, multiple exchanges had released a snapshot of their asset reserves. But the crypto community largely noted the snapshot of assets alone wasn’t enough – there was a need to have exchanges’ liabilities also available.

    Binance’s proof of reserves showed a 101% ratio

    In its update on the issue, Binance has noted its users are now able to verify the exchanges holdings. As for what’s possible now, Binance announced the mechanism will initially support Bitcoin. The exchange will look to add other tokens and networks over the next few weeks.

    Binance will also allow for the auditing of its proof of reserves results by third-party auditors and implement ZK-SNARKs to help bolster privacy and robustness.

    “Because Binance offers Margin and Loans services, the audit results will show the Net Balance, Equity and Debt of each user, where the Net Balance = Equity – Debt,” the Binance team wrote.

    A snapshot taken on 22 November 2022 at 23:59 (UTC) shows Binance’s on-chain Bitcoin balances stood at 582,485.9302, while customer net balance was 575,742.4228. The reserve ratio from the snapshot was 101%, with the margin at 6,743 BTC.

    Binance customers can verify whether the exchange holds their crypto as it should.

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