If doing proof of keys/reserves meant revealing all the exchange's public keys, would it be worth the privacy implications for the clients?
- Yes27.8%
- No25.6%
- Depends15.5%
- See Results31.2%
3,524 votesFinal results
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Conversation
- exchanges hold funds in omnibus accounts so there's no per-user balances
- exchanges have no privacy anyway
several companies have identified the cold/hot wallets for multiple exchanges. kraken's balances are by no means 'private'.
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Not all wallets are identified and publicly enumerating all wallets would increase transparency and certainty around data for anyone looking in from the outside without a subpoena.
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Use a zkp. This way, no customer info is leaked.
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has anyone attempted/suggested a zkp implementation of this yet?
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We suggested to build it, described below. It's quite practical, using STARKs. But when we asked, exchanges didn't seem interested in it, preferring to use manual methods (accountants and auditors).
coincenter.org/entry/how-can-
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And prior to that, there's the beautiful academic Provisions work, by , , and others. crypto.stanford.edu/~dabo/pubs/abs
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Excellent work and still something we’d like to do in the future but engineering lift is heavy and method may not be support all address types we use, like multisig. In the short term, privacy not being a concern, the transparent method with full address list is easily doable.