Crypto Exchange, Gate.io, Provides 100% Proof Of Collateral
Gate.io provides users with 100% collateral proof in an open-source way.
Gate.io, one of the world’s top 5 cryptocurrency exchanges, launched a ‘Proof of Collateral’ service in 2020, proving that the company is audited and fully holds collateral of all the assets offered on its platform and held by users. As demand for investment in cryptocurrencies reaches new highs, Gate.io has again vetted these details to confirm 100% proof of collateral.
The ‘Proof of Collateral’ service was launched to keep inline with Gate.io’s long-term goals, which includes offering an open and transparent platform that complies with regulations and trading standards. Gate.io is one of the oldest cryptocurrency exchanges in the world, having been launched in 2013, and has grown to be one of the largest in the world, with over 1,000 coins and tokens available to trade on the platform.
What is Proof of 100% Collateral?
Assets are the foundation of most investments. Out of trust, trading platforms need to ensure the security of user assets and provide a consistent, transparent trading experience. Gate.io developed a service which utilises the Merkle Tree approach used in many blockchain projects, to allow its users to verify that the platform does in fact hold 100% of the assets, or collateral, available on its platform. Besides this, an independent, cryptographically-verified audit was done on Gate.io’s holdings by an independent auditor.
More importantly, every single user’s assets are recorded on a ledger in Gate.io’s centralized database. The recorded assets listed in the database are the total amount of users’ assets held on the exchange. The word ‘collateral’ translates to the amount of user assets stored on Gate.io. In simple terms, ‘Proof of 100% Collateral’ means that the total amount of assets held by the exchange is equal to or higher than the total user assets stored on the platform.
Authenticating Gate.io’s Proof of Collateral
Gate.io has adopted two methods proving the total amount of user assets and collateral held by the platform. The first method is storing the hash value of each user’s holdings in leaf nodes on a Merkle Tree, which is accessible to users upon request. The second method is to audit the assets held on the leaf node of the Merkle Tree and verifying all users’ holdings through an audit by a third party. To ensure utmost transparency, the full written audit report provided by a third party, independent auditor is open to all users.
Since Gate.io has over 1,000 coins and tokens available on its exchange, and the storage and transfer of assets involve multiple cold and hot wallets with multiple addresses, Gate.io has opened to a full audit by an external auditor. Armanino LLP, a leading top 25 CPA and consulting firm based in the US, has audited Gate.io’s holdings, publishing a report in 2020 confirming the company holds 100% collateral.
About Gate.io
Gate.io allows blockchain enthusiasts to trade and store assets in over 890 of the leading cryptocurrencies for over 6 million users from over 190 countries. The exchange offers spot, margin, futures and contract trading in addition to DeFi products through Hipo DeFi, custodial services through Wallet.io, investments through Gate Labs and it’s dedicated GateChain platform. The company also offers a wholly integrated suite of products such as its Startup IEO platform, NFT Magic Box marketplace, crypto loans and more.
For more information on Gate.io, please visit https://www.gate.io/
