Post
Topic
Board Trading Discussion
Re: bitcoinity.org/markets - live bitcoin price charts
by
senor_coconut
on 26/03/2014, 09:17:40 UTC
Kraken is getting the shout out for being the first exchange to take some serious steps towards proving their bitcoin solvency. Their solution ( https://www.kraken.com/security/audit ) is not perfect but it's better than what any other exchange has done so far. It's going to be just 2 weeks because it's not a full proof of solvency i.e. it still depends on trust to the auditor. I'm happy to promote them because based on my talk with them my subjective opinion is that they know what they are doing.

They plan to release audits quarterly. I definitely would like to see these more often, and with direct proof of control of the bitcoins. I hope this is just a first step to a better future when such proofs become a standard. But a lot of this depends on the community. You can ask your exchange to improve their transparency, and you can vote with your money.

Relevant links:
https://iwilcox.me.uk/2014/proving-bitcoin-reserves
https://github.com/olalonde/proof-of-solvency





comboy,

I don't mean to bash, after all it is the best step taken so far by an exchange on par with what bitstamp did already some time ago.
But as someone pointed out on reddit these audits are not comprehensive since only BTC reserve ownership is proven and the fiat reserves are not.
And this basically invalidates the BTC audit because you could very easily turn fiat into BTC for the audit and then go back into fractional mode.
Just be careful with the votes of confidence and always do your own thinking.
Props for the great site anyway!