Our Merkle Tree Proof of Reserves service pairs cryptography with traditional CPA attestations, fulfilling the needs of crypto-savvy platform clients, conservative regulators, and management.
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Customers and regulators are demanding more transparency from their exchange and custody partners. Exchanges and crypto platforms are trying to do more to increase transparency, but the market lacks a uniform, third-party-attested approach including a Merkle Tree method for customer verification.
The Network Firm’s Proof of Reserves system is an institutional attest reporting and user verification application enabling trading platforms and custodians to prove to their customers that the liabilities held on platform are reserved by like-kind digital assets. The Merkle Tree Module empowers customers to cryptographically verify that their account balances (liabilities) have been included in the periodic assessment and also review the CPA attestation report to better understand the procedures performed and results of those procedures.
As the first CPAs to perform a proof of reserves engagement under the Merkle-assisted model, we are forging the standard. The Network Firm’s Proof of Reserves system delivers you a robust, repeatable, and reliable solution for even the largest and most complex operations. Our expert team will work with you to define the scope of your attest report coverage, produce the customer liability set, test asset ownership and also produce the Merkle Tree and database for the customer verifier. Our high-availability API will serve your report and the customer verification, allowing you to show a proof of reserves on your public website and/or your permissioned customer portal.
The Network Firm created LedgerLens, a suite of Proof of Reserve software that is used to execute TNF's different types of Proof of Reserve engagements. You can learn more about the LedgerLens software .
The Network Firm delivers the following outputs to our clients for our Merkle Tree Proof of Reserve Service.
TNF delivers a widget that is embeddable onto your public website, highlighting the details related to all of your Proof of Reserve attestations. Importantly, the widget hosts a Merkle Tree Verifier, enabling users to confirm their User Account was included within the scope of the Proof of Reserves. The Merkle Root Hash presented on the Summary and Merkle Tree tabs matches the Merkle Root published by TNF within the attestation report, effectively "linking" the Merkle Tree and Attestation Report.
On the Embeddable Merkle Tree Module, the attestation report completed by TNF is available for download by your users. The attestation report is issued under standards promulgated by the American Institute of Certified Public Accountants (AICPA) ().
No, for this service, the Proof of Reserve report and Merkle Tree are published on a periodic basis. Typically, the reporting frequency is either monthly, quarterly, or semi-annual. To explore our real-time reserve service, please view our .
