The crypto exchanges are no strangers to extreme losses in a blink of an eye. The cases of Cryptopia, QuadrigaCX stand out in particular which shook the entire crypto industry. It is not that easy to put faith in these crypto exchanges, as not only there's an element of risk as hackers could attack it anytime but also these exchanges could be shady about their business too.

This is where proof of reserve enter the scene. It demands the exchanges to display the public key so it is there for everyone to see that the funds are fully backed. Proof of Reserve makes it certain that the <a href="https://www.cryptoknowmics.com/news/a-guide-to-some-zero-fee-trading-cryptocurrency-exchanges-in-india">crypto exchanges</a> can't spend funds from the wallet of active users and still claim to hold them, as occurred in a few cases earlier of Cryptopia etc. Also if the exchange is attacked and funds are lost, PoRs makes it impossible for the owner to hide this.
<h2>Bitfinex CTO Confident That They've Bettered PoRs</h2>
In a recent <a href="https://youtu.be/KbxeiARiLd8">podcast</a>, the CTO of Bitfinex, <a href="https://twitter.com/paoloardoino?lang=en" target="_blank" rel="noopener">Paolo Ardoino</a> was quizzed about if the platform along with Tether is looking to implement PoRs in the near future. The CTO boasted that they've gone one step further and that Bitfinex privacy system better than PoRs, which would allow it, users, to vote to verify and choose their preferred block producers.

When the platform suffered a major loss in 2017, the company released a <a href="https://blog.bitfinex.com/announcements/response-to-online-rumours/" target="_blank" rel="noopener">statement </a>suggesting it was not insolvent. The company tried its best and even displayed the public wallet keys and Tether also around a similar period lost $30 million.

When the CTO was asked further whether a dashboard of transparency could be made which would display the proofs, Ardoino responses that they can provide proof of word from their side but suggested that it is tricky as the platform has millions and millions of users.

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Bitfinex CTO Claims Platform's Privacy System Better Than PoRs

The CTO of Bitfinex believes that the platform's new system is better than even Proof of Reserves,and allows customers to choose their block producer.

Zain is a fervid fan of bitcoin and has been meticulously covering the field for a fair amount of time now. An aficionado of Spider man, Liverpool and Slim Shady.

Bitfinex CTO Claims Platform's Privacy System Better Than PoRs

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