Proof of Reserves enables transparent verification that platforms hold enough on‑chain assets to cover user withdrawals. By combining wallet proofs with Merkle‑tree aggregated liabilities, and backed by auditor oversight, PoR restores trust post‑FTX. However, users must evaluate audit frequency, scope, and coverage of off‑chain obligations. Real‑time systems like Chainlink and live Skynet dashboards from CertiK elevate trust and operational integrity. As crypto matures, PoR will be a cornerstone of credible, compliant custody and asset issuance.
Q1: What is a primary goal of Proof of Reserves?
A1: To prove solvency and reserve-versus-liability matching
Q2: What is a known limitation of a single PoR snapshot?
A2: It may omit off‑chain liabilities
Q3: Which feature does CertiK include in its PoR audit?
A3: Skynet-integrated dashboard with live monitoring
Q4: What enhances user trust in PoR systems?
A4: Privacy-preserving Merkle proofs and auditor attestation
