Proof of Reserves

(PoR)

A check that shows a platform holds enough assets to cover balances.

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What is Proof of Reserves?

Proof of Reserves is a verification method that aims to show a platform holds enough assets to cover what its customers are owed. It is one way a platform can demonstrate transparency.

Things to keep in mind

Techniques vary, and a strong proof also accounts for liabilities, not just assets. It became a bigger talking point after several high-profile platform failures.

Related terms

Checking transactions and users against official sanctions lists.

A scam where a project’s team abandons it and takes investors’ funds.

A scheme that inflates a price then sells off, leaving others with losses.

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