How Crypto Exchanges Use Proof-of-Reserves to Build User Confidence
After several high-profile exchange collapses, traders have become increasingly concerned about whether platforms truly hold enough assets to back customer deposits. Proof-of-Reserves (PoR) is a system where exchanges publicly verify their holdings using cryptographic audits and blockchain transparency. This article explains how PoR works, why it builds trust, and the limitations of these audits if liabilities aren’t disclosed. It also highlights leading exchanges that have adopted PoR, showing how accountability is becoming a new industry standard.