Gate.io, a global blockchain asset exchange platform, has released a technical proof around providing users with a method to check their collateral, including their total assets on the platform.
The method is a combination of the mathematical algorithm and a financial audit built on a hack-proof algorithm. The company announced that there are two methods to show user’s total assets and users’ collateral held by Gate.io.
The first method is to store each user account’s hash value of assets in the leaf nodes of the Merkle tree. The second method is to audit those assets in the leaf node of the Merkle tree and verify all the users’ collateral held by Gate.io through an audit of a third-party institute.
The written audit report and the Merkle tree of the hash value of users’ total assets are open to the public through the audit of the third party. Each user, through the application of mathematical algorithms can verify the accuracy of their assets recorded in the Markle tree.
‘Generally, assets held by a centralised exchange can’t be monitored by the users themselves. Users wouldn’t know if their assets are being misused without their knowledge, which could lead to a situation where the collateral turns out to be lower than the recorded assets in the database. As a result, users would face tremendous risks, involving delayed withdrawal’, Gate.io representatives stated in their press release.
Gate.io has a feature that allows users to check their balance on the website, where the written audit report and the Merkle tree of the hash value of users’ total assets are shown.
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