Hacken Finds Gate.io’s PoR ‘Contributes Significantly to the Field’
Panama City, Panama, January 22, 2024
Gate.io, a leading crypto exchange and Web3 innovator, announced that its latest Proof of Reserves (PoR) methodology passed a comprehensive security review conducted by Hacken, a pioneer in blockchain and Web3 security auditing. The accompanying report found no severe issues.
Released on January 3, the report describes Gate.io’s PoR method as a balance of functionality and complexity and that it “contributes significantly to the field, demonstrating a clear understanding and application of key principles in blockchain technology and cryptographic systems.”
Hacken’s Comprehensive PoR Security Review
Hacken’s security audit process involves a rigorous analysis of the code and functionality of Gate.io’s PoR, checking it against known vulnerabilities. The review covered key areas such as dependency management, cryptographic frameworks, code quality, error handling, and testing.
Dr. Lin Han, Founder and CEO of Gate.io, said: “We’re grateful for Hacken’s thorough and diligent security review, leaving no stone unturned. Ensuring the integrity of our PoR is a commitment not only to user asset safety but also to the entire blockchain industry. Hacken plays an important role in fortifying this commitment and ensuring we continually set the bar high.”
Hacken’s review also outlined improvements to non-critical issues with the PoR method. Gate.io will further iterate and improve its PoR as part of its ongoing commitment to user asset security.
“As the digital landscape evolves, the imperative for transparency becomes non-negotiable. At Hacken, we initiated our Proof of Reserves journey in 2019, laying the groundwork with extensive market research. Since 2022, we have been conducting Proof of Reserves audits. Centralized Exchanges must embrace this standard, ensuring accountability and transparency. Pioneers like Gate.io set a benchmark for the whole industry. Proof of Reserves will soon become a standard for custodians, exchanges, lenders, and stablecoin issuers”, said Yevheniia Broshevan, Co-Founder & CBDO at Hacken.
Proof of Reserves Early Adopter and Leader
In 2020, Gate.io became one of the first exchanges to conduct PoR using the now-standard method of combining Merkle trees with a third-party auditing firm and independent user validation. Repeating the process in 2022, Gate.io then made its implementation open source following FTX’s collapse. It was then upgraded in 2023 to include more regular reporting on more than 100 assets, the most of any exchange, and utilizing ZK-SNARKs for enhanced security and privacy.
The latest PoR data provided by Gate.io now covers 171 assets, 59 more than the previous report. The published data validates that its reserves exceed user deposits by more than 100%, with excess funds amounting to over $584 million or 15.47% of user deposits.
About Gate.io:Â
Established in 2013, Gate.io is one of the world’s earliest cryptocurrency exchanges and a leader among compliant and secure digital asset platforms, offering diverse trading services with 100% user-verifiable Proof of Reserves. Further, the platform has consistently ranked as one of the top 10 cryptocurrency exchanges based on liquidity and trading volume on CoinGecko. Besides its primary exchange services, Gate.io has diversified its ecosystem to offer decentralized finance, research and analytics, venture capital investing, wallet services, startup incubation, and more. The platform currently serves more than 13 million active users worldwide.