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The blockchain technology startup Blockstream presented the solution code Proof of Reserves, which will allow cryptocurrency exchanges to confirm that they have the necessary to the functioning of reserves. To this end, representatives of the crypto currency exchange needs to perform a transaction for all unspent outputs of transactions (UTXO) with additional incorrect output which does not allow the network to accept transaction, but will provide an opportunity to demonstrate to the exchange’s bitcoins.

Reportedly, the decision was developed to confirm third-party auditors reserves in Liquid bitcoin (L-BTC) in the Liquid sidechained, but the researchers “quickly realized that the existing approaches of cripture in bitcoin reserves can be greatly improved, and can get more broad use out-of-network Liquid”.

The startup team has sent a proposal for improving bitcoin (BIP) to the mailing list of the developers and waiting for feedback from the crypto community.

We will remind that earlier Blockstream announced the extension of the running last summer of service for transfer of cryptocurrency by using satellite communication – Satellite Blockstream – the Asia-Pacific region, as well as adding support for Lightning-transactions.

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