Since the collapse of FTX, all platforms are under pressure to certify their reserves. Now CZ has provided proof-of-reserve for BINANCE using Merkle tree hashes. That being said, anyone can verify their bitcoins on Binance using Merkle tree.
Merkle Tree
Computer scientist Ralph Merkle patented the concept of a cryptographic hash tree in 1979, which is called the Merkle Tree. Ralph Merkle is now a well-known Bitcoin maximalist, and his idea is used to prove Bitcoin reserve
Other Exchanges going Merkle Tree
Merkle Tree's influence has also increased due to acceptence by big platforms like Binance; other platforms are also getting audited by it to win people's trust. Recently, Bitget also got its audit done by Markel Tree.
Not Everyone is Impressive
Although many people are praising this policy of Binance, not everyone is satisfied. Hegde fund manager James Lavish has called it proof of solvency.
Kraken CEO Jesse Powell has raised questions in the past, this time also disbelieving the POR due to the lack of audits and negative balances involved, describing it as merely a "proof of liabilities."
