Proof of Reserves (PoR)
A public audit showing that an exchange actually holds enough assets to cover user deposits.
Proof of Reserves (PoR) is a transparency method
used by crypto exchanges to prove they truly hold
the coins their users have deposited.
It’s like showing a bank statement —
but on the blockchain, where everyone can verify it.
Why it matters
- Helps users confirm the exchange is not insolvent
- Builds trust after major exchange collapses (like FTX)
- Lets you verify that your balance is actually backed by real crypto
PoR audits are done using Merkle trees —
a cryptographic way to confirm balances without revealing private info.
💡 Lanzo Tip
Always choose exchanges that publish regular Proof of Reserves reports
and avoid those that refuse — transparency is your best protection 🔍