Proof Of Trust
No more insolvency, a protocol layer to audit and validate reserves against liabilities of Centralised Exchanges.
Proof Of Trust
Created At
ETHIndia 2022
Winner of
🏆 ETHIndia Finalist
🧙 IPFS & Filecoin — 🔟 General Storage Track: Top 10
🥈 EY — Best use of Nightfall
🥇 Okto (by CoinDCX) — Best Use
Project Description
As we are aware of the current market situation and how a major CEX player went down, there emerged a problem that needs to be solved to bring back the trust of the users. There should be an economic and robust solution for auditing the reserves of Centralised Exchanges. Not just focusing on Proof of Reserves but also on Proof of Liabilities. This will bring back the lost trust of the Centralised Exchange users. The idea is to have a trustless mechanism for validating reserves' balance and calculating user liabilities over a consensus layer.
How it's Made
- Figuring out an improved auditing mechanism where multiple auditors can be onboarded.
- Building algorithm for proof of liabilities implementation
- Finding a cost-effective way of proving the reserve
- Simulating the Centralised Exchange environment for proof of trust testing
