[PRESS RELEASE – Singapore, Singapore, August 15th, 2023]
The latest Merkle tree asset proof data in August 2023 includes an update on ETH & stETH and USDT & stUSDT.
Users can view Huobi reserves in detail on the asset audit page of Huobi’s official website. The available information includes reserve ratio, Huobi wallet’s assets, and Huobi’s user assets. Huobi will regularly conduct Proof of Reserve audits to ensure users that their assets are safeguarded.
* The screenshot is taken from Huobi’s official website and users can view the reserves on this page.
The specific reserve ratios shown in this update are as follows: 102% for USDT (Huobi wallet balance: 662,404,586 USDT), 101% for BTC (Huobi wallet balance: 25,410 BTC), 104% for ETH (Huobi wallet balance: 139,523 ETH), 103% for HT (Huobi wallet balance: 191,815,856 HT), and 103% for TRX (Huobi wallet balance: 9,702,620,024 TRX). The data for USDT and ETH already includes stUSDT and stETH.
The Merkle Tree helps summarize and verify the existence and integrity of blockchain data in a timely manner. It typically contains the underlying (transaction) database of the block, the hash of the block header (the Merkle Root), and all branches along with the underlying block data to the root. The calculation of the Merkle Root for a blockchain generally involves grouping hash values of the data of that specific block and then inserting the newly generated hash into the Merkle Tree recursively until only the last root hash remains. After that, it is recorded as the Merkle Root of the block header.
Proof of Reserves (PoR) is a common audit method used to ensure that a crypto exchange holds sufficient on-chain funds to cover all assets held on it. This is how the Huobi Merkle Tree works: snapshots of all user balances are taken in order to generate a Merkle Tree. The Merkle Tree contains the encrypted data of assets held by all users in the exchange. The Merkle Root is acquired from the Merkle Tree and contains a single hash containing total balances in the snapshots. Then, the digital signatures of Huobi’s on-chain wallet addresses are verified to prove ownership over the addresses which obtain publically verifiable balances. Finally, the total balances held in on-chain wallet addresses are compared with the total balances provided by the Merkle Root to verify whether all assets are backed 1:1 by Huobi’s reserves.
At Huobi, the team believes that “in order to ensure data transparency and accuracy, the relevant reserves data on the asset audit page is currently updated once a month with the snapshot date generally on the first day of each month. The Merkle Tree data update is normally completed within the first week of each month. And in the future, Huobi will also optimize relevant technical modules and join hands with more technical service providers to achieve a more secure and transparent service. It is Huobi’s mission to follow the strategy of ‘global compliance’ and bolster a healthy development of the crypto industry.”
About Huobi
About Huobi: Founded in 2013, Huobi has evolved from a crypto exchange into a comprehensive ecosystem of blockchain businesses that span digital asset trading, financial derivatives, wallets, research, investment, incubation and other areas. Huobi serves millions of users worldwide, with a business presence covering over 160 countries and regions across five continents. Its three development strategies – “global development, technology drives development, and technology for good” underpin its commitment to providing comprehensive services and values to global cryptocurrency enthusiasts.
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