Chainlink Labs offered its Proof of Reserve product as a solution to future trust issues in the crypto exchange market on Nov. 10.
Will crypto continue to repeat the mistakes of the traditional black-box financial industry?
— Chainlink (@chainlink) November 10, 2022 In answer to this question, it offered its Proof of Reserve (PoR) product, which it said is useful for “for verifying centralized exchange asset reserves, off-chain bank account balances, cross-chain collateral, real-world asset reserves, and much more.”
Over the past few days, the crypto market has been in a freefall thanks to a liquidity crisis at the world’s second-largest crypto exchange, FTX.
In the wake of these ongoing issues, the crypto community has started to discuss ways to solve the problem, and one solution that has been offered is for customers to require that every exchange they use offer a Proof of Reserve.
The contract can be queried by any other account on the network to determine whether the exchange’s crypto assets are equal to its liabilities.

Source - Coin Telegraph

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