solvency-proofs
Latest updates:
- Dec 1st, 2022: a cryptographic report on Binance's Proof of Reserve's solution has been uploaded. TL;DR 4 vulnerabilities and 3 other privacy, trust and optimization issues have been identified. See the full details here.
- Binance is already working with their auditor and cryptography experts to address feedback and they try to improve in the subsequent versions of their PoR system.
Goal
This repository aims at tracking and enlisting:
- cryptographic schemes for proofs of solvency applied to centralized exchanges, wrapped coins, custodians etc. These schemes typically include:
- proofs of liabilities: proving the total value the prover owes to all of its customers or creditors.
- proofs of assets (also known as proof of reserves) and is divided into 2 main categories:
- blockchain account ownership for various assets:
- fungible: cryptocurrency, stable coins etc.
- non-fungible (NFTs)
- non-blockchain asset ownership (cash, bonds, stocks, real estate etc.), usually divided into:
- liquid assets
- semi-liquid assets (can be converted to cash within a reasonable amount of time, usually within one year)
- illiquid assets
- blockchain account ownership for various assets:
- proofs of solvency: the combined outcome of the above two, including absolute, fractional or with a surplus solvency expectations.
- useful cryptographic primitives:
- Zero-Knowledge Proof systems and related gadgets
- Merkle trees (including sparse trees)
- Random sampling algorithms
- Private Information Retrieval (to avoid tracking re who verifies proofs)
- repository links with implementations for any of the above algorithms / solutions
- official audit reports
- links to official solvency reports from various exchanges
- list of Exchanges, Oracles, Auditors and Organizations that work on (provide) solvency proofs solutions.
- interesting news-posts or social network threads and posts (Reddit, Twitter, LinkedIn etc)
- other educational material, including podcasts and blogposts
- list of known attacks or insolvent cases.