Shiba Inu ($SHIB), Polkadot ($DOT), and More Added to Binance’s Proof of Reserves Verification System

The meme-inspired cryptocurrency Shiba Inu ($SHIB) and the native token of the “blockchain of blockchains” Polkadot ($DOT) have been added, along with other tokens, to Binance’s Proof of Reserves verification system.

Binance’s Proof of Reserves system essentially allows users to verify through a cryptographic tool called a Merkle Tree to verify that the cryptocurrency has their assets in reserve, backing their deposited funds on the platform.

Both $SHIB and $DOT were added alongside Solana ($SOL) and Chiliz ($CHZ) to Binance’s system, bringing the total number of verifiable assets on the platform to 13.

The leading cryptocurrency exchange’s verification system has also been recently upgraded with zk-SNARKs,  a “zero-knowledge verification method that keeps sensitive information private and more secure.”

Zk-SNARK, Investopedia writes, is an abbreviation for “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge.” It’s a cryptographic proof that enables a party to demonstrate the possession of specific information without revealing it.

The proof is executed with the help of a pre-transaction secret key. According to ConsenSys, the goal of zk-SNARKs is for a verifier to establish, without disclosing it to anyone, including themselves, that a prover has knowledge of a secret value known as a witness that satisfies a particular relationship.

As CryptoGlobe reported, Shiba Inu has been seeing the number of large whale transactions on its network surge, in a move that has been “historically associated with price shifts.” The cryptocurrency has seen “big spikes in large whale transactions,” with transactions over $100,000 spiking to highs last seen months ago.

These large whale transactions are occurring amid a wider cryptocurrency market recovery, with the flagship cryptocurrency Bitcoin ($BTC) seeing its best January in a decade after rising over 40% in just a month.

Notably, Polkadot has recently become the leading cryptocurrency network by development activity after surpassing Cardano ($ADA).  Polkadot saw its active user numbers surge 300% amid last year’s cryptocurrency market rout. Polkadot’s main blockchain, called the relay chain, does not support smart contracts, but other blockchains connected to it can support them. 

As a result, Polkadot is expected to become a growing ecosystem of cryptocurrencies that competes with other smart contract networks such as Ethereum, the BNB Chain, and more. It was launched in 2020 and brings a number of technical features that help it reach its goal.

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