All You Need to Know About DePIN

In recent years, we have witnessed the emergence of many hot trends and movements. These trends include DeFi, Metaverse, GameFi, NFTs, AI, and meme cryptocurrencies. Currently, the latest trend seems to revolve around meme cryptocurrencies. However, many have noticed a rising star known as DePIN. So, what exactly is DePIN? What are some examples of DePIN, and what are the benefits and limitations associated with this type of token? This article will explore all of that.

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What is DePIN?

Decentralized Physical Infrastructure Networks (DePIN), also known as DePIN, have become a new trend in the cryptocurrency space. DePIN refers to new networks that utilize tokens as a motivator for the community to build physical infrastructure. This is where DePIN differentiates itself from traditional cryptocurrencies because DePIN requires some form of physical hardware.

DePIN also employs tokens or coins to incentivize people to participate in the network and contribute to building the infrastructure from scratch. This leads to the creation of “Real-World Dapps.” DePIN utilizes blockchain technology to merge real-world physical infrastructure with permissionless and trustless hardware networks.

While DePIN has the potential to deliver faster results compared to traditional companies due to significantly lower initial costs, almost no barriers to entry, and financial components in the form of incentives for anyone participating in the network, DePIN also represents a slow revolution. In the long run, it can empower users and network participants with ownership and control, while providing them with opportunities to earn hundreds, if not thousands, of dollars annually.

In summary, DePIN is a decentralized network dividing traditional physical hardware infrastructure that requires significant capital. They also allow anyone to become an operator or hardware provider, thus solving the liquidity problem through token-encoded incentives and peer-to-peer markets.

The Importance of Token Incentives: Token incentives play a vital role in two stages throughout the entire process. First, DePIN uses tokens to incentivize people to participate in the network from the beginning, aiding the project's initial launch. Second, it motivates new users to join afterward as the network effect ensures the earlier they participate, the better their financial outcome.

Looking Back at the History of DePIN

The spread of DePIN may appear fresh, but there have been various similarities in the past. Projects like Helium and Filecoin, created in 2019 and 2020 respectively, can be considered early examples of DePIN. However, it wasn't until late 2022 that these tokens were specifically labeled as DePIN in Messari's research report and through a Messari Twitter poll.

Prior to that, the projects currently classified as DePIN were referred to by different names such as EdgeFi, Proof-of-Physical-Work (PoPW), or Token Incentivized Physical Networks (TIPIN). Thus, determining the true origin of this segment is challenging. However, Messari decided to consolidate all these names into a common group and started classifying all these projects under the same new acronym – DePIN. Since then, the popularity surrounding these projects seems to have only grown. Many have claimed that DePIN is a real-world use case and innovation that blockchain technology can bring. Some have even gone as far as declaring it as the only case. However, in reality, these projects operate differently.

Types of DePIN

According to the previously mentioned Messari report, when referring to DePIN, people usually describe projects falling into one of the following four categories:

Cloud Storage Networks: Including file storage, servers, VPN networks, or CDNs. Wireless Networks: Community-driven networks, which may include technologies like 5G or LoRaWAN. Sensor Networks: Anything from weather to mapping, including real-time data collection through sensors. Energy Networks: Primarily distributed electricity grids. These are just the main categories described by Messari. However, that doesn't mean the potential of DePIN is limited to these four categories. As we'll see in the later benefits section, DePIN has a long list of potential advantages that can be applied to anything, where the four main factors (hardware, hardware operators, tokens, and users) in DePIN will be present.

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How Does DePIN Work?

For DePIN to function correctly and smoothly, there need to be four different participating entities or parties in the network. They are:

Hardware: A physical component connecting the network to the physical world. Hardware Operators: Individuals who purchase or lend their hardware in the process of connecting to a specific network. Token: A form of financial incentive, often a specific cryptocurrency of the project. Tokens are rewarded to hardware operators based on established rules set by the project. Users: Last but not least, DePIN requires users within the infrastructure to utilize the network's hardware. These are people willing to use and pay for the solutions and services provided by DePIN. If any of these entities are missing in any business model or DePIN concept, the project can become immediately threatened or fail. Similarly, if there aren't enough entities present in the project's initial stage, its future becomes uncertain and risky.

Specific factors such as reward size or hardware barriers may vary from one project to another. Therefore, they can be difficult to categorize or divide into specific groups. However, identifying which projects fall into the DePIN world becomes relatively straightforward.

Examples of DePIN

As mentioned earlier, the history of DePIN is quite elusive. One can speculate about the first DePIN projects or the history of this cryptocurrency subsector as much as they desire, but that won't change the fact that there are projects within this category. While the list of these projects is extensive, with Helium arguably being one of the first projects, we'll only briefly summarize a few of the most well-known projects that can be classified as DePIN.

  • Filecoin (FIL) is a project that provides cloud storage services similar to Google Cloud or Amazon Web Services in Web2. It offers a decentralized and secure storage solution incentivized by the FIL token. Filecoin connects those in need of data storage space with individuals who have spare hard drive space.
  • Dimo (DIMO) is a project that provides media and user-driving data marketing capabilities. After users download the Dimo app, they can choose what information about their vehicle (such as battery health) they will share, and they are rewarded with DIMO tokens. There is a significant automotive market for various entities such as ride-sharing apps to purchase access to this data and improve their operations.
  • Hivemapper (HONEY) is a decentralized mapping platform built by users with cryptocurrency-enabled cameras mounted on cars. It aims to recreate Google Street View but in a decentralized manner. Users drive with these cameras and generate GPS-related image data that can be financially rewarded with HONEY tokens.

Clearly, the DePIN world contains many more projects. Among them, we haven't mentioned Storj, Sia, Pollen, React, or Arkreen, just to name a few examples. These projects vary primarily based on the field or type of network they aim to operate in. For example, while Storj and Sia belong to storage networks, Pollen falls under wireless networks, and React and Arkreen belong to energy networks.

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The Long List of DePIN Benefits

The trend surrounding DePIN is becoming increasingly realistic each day. It seems that DePIN has the potential to become another acronym representing a phase of interest, where everything related to DePIN will experience significant value appreciation, similar to what we have seen with ICOs, DeFi, Metaverse, or NFTs.

However, that doesn't mean DePIN doesn't come with any benefits. On the contrary, here is a list of just the remarkable benefits that cannot be ignored in any conversation about DePIN:

Scalability: DePIN has the potential to scale much faster than its traditional counterparts. Some argue that their infrastructure can be built ten to a hundred times faster simply due to the decentralization among network participants. Furthermore, DePIN can scale globally in a permissionless manner, making it a more attractive solution with fewer barriers in the future. Cost Efficiency: The same principle of scalability also applies to cost-efficiency in production. The distribution among various market participants can ensure significantly cost-effective solutions compared to traditional alternatives. Uncensorability: If developed and deployed correctly, DePIN can be challenging to censor. With no single entity responsible for the project, it means regulatory bodies or governments cannot use this network for censorship. This is also due to the notion of collective ownership, a key assumption of DePIN. Collective Ownership: Speaking of collective ownership mentioned earlier, DePIN makes the interests of investors and stakeholders align harmoniously. This not only helps drive rapid adoption and development but also ensures that projects and solutions are better aligned with the needs of local markets. Integration with DeFi: Thanks to its decentralized and permissionless nature, DePIN can also foster innovation and improvements in the cryptocurrency world. It can support seamless micro-payments and integration with DeFi precisely because it's not limited like most traditional infrastructure solutions. Additionally, DePIN can offer more flexibility and versatility in the development and deployment stages. The barriers to entry for project participation are also expected to be lower compared to traditional solutions. The potential benefits list also includes self-reinforcing growth loops, community reinforcement, ownership, or custodial responses.

Limitations of DePIN

While the benefits of DePIN are evident, there are also challenges and limitations that need to be clearly defined. Some of these limitations are more theoretical, while others have been observed in the real world with certain projects. Some potential limitations of DePIN include:

Incentive Model: Many argue that the incentive model of DePIN has a high dilution, leading to false promises or enrichment for founders and members of the DePIN team. Intense Competition: Some may argue that the DePIN subsector is relatively small and has plenty of room to grow, thus lacking significant competition in the market. And while that may be true, the reality is that most new DePIN projects will compete against established giants like Amazon, Microsoft, or Google. It cannot be denied that it's a much more fierce competition. Failed Efforts: Helium and Filecoin, arguably the two most well-known cryptocurrencies in this space, experienced tremendous success in the bullish market of 2021. However, since then, both projects have faced difficulties, including opposition and accusations of market manipulations or blood-related relations. Like any cryptocurrency portfolio or subcategory, there are always drawbacks, not just benefits. The three limitations mentioned above are just some of them. However, over time, it will become evident that there will be many more limitations discovered as various projects attempt to dominate this emerging world of DePIN.


DePIN is becoming a new trend in the cryptocurrency world. Some have proposed that they have the potential to become a phenomenon similar to ICOs, DeFi, or NFTs. However, regardless of their tremendous potential and the incredible list of benefits they can bring to people, they will need to prove themselves. Most of these projects are either in their early stages or not significantly successful, meaning upcoming DePINs won't find success easily.

BingX Expands Market into the Middle East and North Africa Region

BingX, a leading global cryptocurrency exchange, is pleased to announce its decision to further expand into the Middle East and North Africa (MENA) markets. This strategic move is part of BingX's ongoing commitment to provide innovative and reliable trading services to users worldwide. By investing in these vibrant markets, BingX aims to connect with a larger user base and promote the adoption of cryptocurrencies in the region.

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BingX Expands into Middle East and North Africa Markets

BingX has established itself as a prominent player in the cryptocurrency industry, offering a comprehensive range of services, including spot trading, derivatives, copy trading, and grid trading. With over 5 million users across 100+ countries and regions, BingX is striving to enhance the trading experience further with advanced solutions for its global user base. Notably, BingX is renowned for its commitment to user satisfaction, transparency, and innovation. The core focus of BingX's operations is relentless dedication toward revolutionizing the cryptocurrency trading experience. BingX envisions expanding the accessibility of cryptocurrencies and making these assets more user-friendly, catering to individuals from all walks of life. With the goal of becoming the “gateway” for billions of cryptocurrency users, BingX aims to foster comprehensive financial inclusivity and broaden the widespread adoption of digital assets worldwide.

With an impressive presence in Asia, Europe, and the Americas, BingX has positioned itself as a reliable platform for users across various continents. Now, the decision to expand BingX into the MENA markets is driven by the platform's strategic vision and commitment to global growth. The MENA region has witnessed a significant surge in interest in cryptocurrency usage, with an increasing number of individuals and businesses seeking reliable and secure platforms to trade digital assets. BingX recognizes the immense potential in this market and aims to meet the growing demand of cryptocurrency enthusiasts in MENA.

BingX will bring its strengths to the MENA market, including a robust infrastructure and advanced trading tools supporting a wide range of cryptocurrencies. By expanding into MENA, BingX will provide local traders with a seamless trading experience equipped with comprehensive features, enabling them to explore new investment opportunities and navigate the cryptocurrency landscape with confidence.

As part of its commitment to delivering an exceptional trading experience and fostering a vibrant cryptocurrency community in the MENA region, BingX is proud to introduce the BingX Partner Program. Through this program, local partners will benefit from higher-than-industry-standard commission rates. By combining BingX's reputable position as a leading cryptocurrency exchange with the local expertise and profound knowledge of its partners, the launch of this partner program is highly anticipated. The BingX Partner Program will provide tailored solutions and services to cater to the specific needs and preferences of MENA traders.

Elvisco Carrington, Director of PR and Communications at BingX, stated:

“We are thrilled to introduce BingX to the Middle East and North Africa market. As the demand for cryptocurrencies continues to rise in the region, we are committed to providing a reliable and user-friendly platform that meets the specific needs and preferences of MENA users. This expansion decision is a testament to our commitment to global accessibility and our vision for revolutionizing how people trade and invest in cryptocurrencies. We are excited to engage with vibrant markets and collaborate with local partners to create shared value.”

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About BingX:

BingX is a leading cryptocurrency exchange providing spot trading, derivatives, copy trading, and grid trading services to over 100 countries and regions worldwide, with over 5 million users. BingX continues to connect users with professional traders and the platform in a safe and innovative manner.

How to Track and Copy Trades from Other Traders on BingX?

Copy trading is an excellent option for newcomers in the cryptocurrency field, and BingX is a top-choice trading platform. In this article, we will explore the benefits of copy trading and provide a guide on how to start copy trading on BingX.

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What is Copy Trading?

Copy trading allows individuals to automatically replicate the trades of experienced and successful traders. Essentially, copy trading enables users to copy the trading activities of experts, leverage their knowledge, and potentially profit from successful trades without the need for personal execution.

BingX is the leading copy trading platform worldwide, with over 5,436,650 copy relationships established on the platform. It has established itself as a reliable and trustworthy platform for copy-trading enthusiasts. It offers a smooth and user-friendly experience, allowing individuals to connect with traders and copy their investment strategies.

On BingX, there are over 2000 traders currently available to copy. Individuals can select traders based on their specific preferences and risk appetite. Whether one is seeking conservative traders who prioritize capital preservation or rising stars aiming for higher returns, BingX offers a diverse pool of talented traders to choose from.

Now, let's take a look at the benefits and risks involved with copy trading.

Benefits of Copy Trading

Copy trading is a great way for newcomers in the cryptocurrency field to generate profits. Here are some benefits of copy trading:

Accessibility: Copy trading platforms like BingX provide an accessible entry point into the world of trading and investing. It eliminates the need for technical expertise, allowing individuals with limited experience to participate in the market and potentially benefit from it.

Time-saving: Copy trading is an excellent solution for busy individuals with limited time for market analysis and trading. It saves time by automatically replicating the trades of chosen traders.

Learning Opportunity: Copy trading also serves as an educational tool, especially for novice traders. By observing and analyzing the strategies applied by experienced traders, individuals can gain valuable insights into market trends, risk management techniques, and overall trading strategies.

Profit Potential: Copy trading offers profit potential by leveraging the skills and success of experienced traders.

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Risks of Copy Trading

While copy trading has its benefits, it's important to consider and understand the potential risks involved. Here are some risks associated with copy trading:

Risk of Loss: Copying trades does not guarantee profits and exposes investors to risks similar to those of the traders they copy. If the copied trader incurs losses, those losses will be replicated in the investor's account.

Dependency on Other Traders: When engaging in copy trading, investors rely on the skills and decision-making abilities of the traders they choose to copy. Although copy trading platforms like BingX often provide information about traders' past performance, there is no guarantee that past success will continue in the future.

Limited Control: When copying trades, investors relinquish a certain degree of control over their investment decisions. While they can still stop copying a trader, they cannot selectively copy certain traders and ignore others.

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How to Track Other Traders on BingX?

On the BingX platform, the copy trading dashboard serves as a comprehensive center where users can explore and interact with a range of available traders to copy. The dashboard provides a convenient overview of all traders, their profiles, and trading activities. By accessing the dashboard, users can access a group of traders, each with their own unique strategies and trading histories. The platform allows users to view trading histories, average profits, risk levels, and other relevant information.

A notable feature of the BingX dashboard is the ability to learn from traders without immediately engaging in copy trading. Users can research and analyze the trading activities of different traders, and observe their decision-making, the assets they trade, and the timing of their trades. This provides an excellent opportunity for users to enhance their knowledge and trading strategies by learning from experienced traders.

How to Start Copy Trading on BingX?

Getting started with copy trading on BingX is straightforward. Let's look at the steps to do it accurately.

Step 1: Access the Copy Trading Dashboard

First, log in to BingX. If you're using the app, navigate to the home page and find the ‘Copy Trading' section. If you're using the web version, go to the homepage and locate the ‘Copy Trading' tab. In the Copy Trading section, you'll see a list of traders to choose from. You can view various details about them, such as their current position, historical profits, and risk acceptance.

Step 2: Choose a Trader to Copy

Select a trader from the list that suits your preferences and risk appetite. You can explore their profile, trading history, and other relevant information to make an informed decision.

Step 3: Enter Copying Settings

Once you've chosen a trader, you'll be redirected to their profile page. Click the ‘Copy Now' button to initiate the copy trading process. You'll be prompted to enter copying settings.

Copy trading type: Choose the type of trade copying based on the trader's share trading account. Options include position-based copying, fixed equity copying, and grid copying. Principal type: Choose between USDT and VST (Virtual USDT) for copying trades under Standard Futures. For copying trades under Binance Futures and BingX Spot Grid, select USDT as the principal type. Copy trading funds: Set specific parameters for copying funds based on the chosen type. This may include ‘Principal of a Single Trade,' ‘TP/SL' (take profit/stop loss), ‘Daily Copy Trading Principal,' and ‘Maximum Position Margin,' depending on the selected trading account.

Step 4: Check Copying Trade Data

Access the ‘My Trades' section to review your copy trading data.

Overview: Here, you can view ‘Today's Earnings' and ‘Total Revenue.' Click on ‘Details' to access more detailed data. Current: This section displays the currently open copying trades. Copying history: This section contains closed copying trades, including those executed with USDT and VST.

Step 5: Edit or Cancel Copying Trades

If you wish to modify your copying trades, access the ‘My Trades' section and select ‘Current.' Find the trader you are copying and click ‘Stop Copying' to manually stop copying. This will remove the trader from your copying list. Any existing copying trades will be closed when the trader closes their trades. You can also click ‘Edit' to modify the ‘Copying Settings' if necessary.

Key Takeaways

  • Copy trading allows users to replicate the trades of experienced traders, saving time and potentially generating profits.
  • BingX is the leading copy trading platform with a large user community and a diverse selection of traders to choose from.
  • The benefits of copy trading include accessibility, time-saving, learning opportunities, and profit potential.
  • Risks of copy trading include the potential for losses, dependence on the performance of other traders, and limitations on control over investment decisions.
  • On BingX, users can access the copy trading dashboard to explore and learn from traders and their strategies.
  • To start copy trading on BingX, users need to access the copy trading dashboard, choose a trader, and enter the copying settings.

What is a Sequencer in the Ethereum Network Ecosystem?

Sequencers are mechanisms that play a vital role in determining the order of transactions within the blockchain. While many people may not be familiar with Sequencers and their significance, they are essential components that face unique challenges.

In this article, we will explore the concept of Sequencers, their functioning, and the various types known to us. Using Ethereum as an example, we will delve into the importance of Sequencers and the issues they encounter. We will also discuss potential solutions to these challenges.

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Sequencers: An Overview

A Sequencer is a component or mechanism present in a blockchain protocol that helps establish the transaction order. Its primary function is to ensure consistency and integrity within the blockchain. In decentralized networks like Bitcoin and Ethereum, multiple participants, often referred to as nodes, contribute to confirming and recording transactions. However, conflicts may arise when multiple transactions cannot be included simultaneously due to conflicting information.

For instance, if two transactions attempt to spend the same cryptocurrency unit, only one can be accepted to prevent double-spending. To resolve such conflicts and establish a specific order, Sequencers come into play. While the implementation may differ across blockchain protocols, Sequencers typically handle:

  1. Timestamping: Assigning a timestamp to each transaction to record the order of their reception by the network.
  2. Consensus algorithms: Utilizing consensus algorithms such as proof-of-work (PoW) or proof-of-stake (PoS) to determine the transaction order based on the agreement of network participants.
  3. Block formation: Grouping transactions into blocks and determining the order of blocks in the blockchain. This involves organizing and confirming transactions to create new blocks added to the blockchain.

By incorporating a Sequencer into the blockchain protocol, the network ensures that transactions are processed in a consistent order, safeguarding against double-spending and preserving the integrity of the ledger.

Sequencers in the Ethereum Ecosystem

Sequencers have garnered significant attention within the Ethereum ecosystem, primarily due to the emergence of rollups. Rollups are tools designed to enhance Ethereum's scalability. In general, users sign transactions on a rollup and submit them to the Sequencer for sorting and execution. Sequencers play a crucial role in supporting transaction verification, data compression, and sending batches of data directly to Ethereum through a single transaction.

While Sequencers fulfill specific tasks related to transaction processing and ordering, each Ethereum roll-up solution employs its own unique queuing method. However, this exclusivity poses a potential challenge, leading to centralization and fragility risks for Ethereum and its ecosystem. This issue is evident in popular roll-up solutions like Arbitrum and Optimism, which rely on their centralized Sequencers.

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The Centralization Issue: Optimism Example

Optimism, as an Ethereum Layer-2 scaling solution, operates with a single Sequencer. This centralized approach prioritizes scalability over security or decentralization. While a single Sequencer enables efficient transaction verification and execution, it also presents drawbacks. With OP Labs PBC operating as the sole Sequencer, the entity holds complete responsibility for the entire process. This concentration of power raises concerns about potential transaction censorship if the entity decides to censor transactions under regulatory or governmental pressure.

Centralization not only jeopardizes transaction censorship but also affects the functioning of both the Sequencer and the associated rollup. Consequently, there is an increasing need to explore decentralized solutions for this aspect of the Ethereum ecosystem.

The Solution: Shared Sequencer Network

One proposed solution to address the centralization issue is the concept of a “shared sequencer network” put forth by Josh Bowen, CEO of Astria. This approach suggests centralizing the block production process at the Sequencer layer of a rollup. However, instead of each roll-up having its own centralized process, a shared Sequencer network would be utilized. This offers several benefits, including addressing concerns related to centralization and facilitating faster development and deployment of Sequencers. Developers can leverage a shared Sequencer, eliminating the need to build solutions from scratch.

Optimism's Approach to Address Centralization

While a fully functional shared Sequencer network is still a work in progress, OP Labs has devised its own plan to tackle the centralization issue. One such initiative is the Schnorr Sequencer.

The Schnorr Sequencer combines Zero-Knowledge Proofs (ZKPs) and optimistic rollup methods to address scalability challenges. ZKPs ensure trustless accuracy in execution results, making them ideal for Layer-2 solutions. However, ZKP computations can be time-consuming for multi-purpose rollups. The Schnorr Sequencer employs game theory and a commitment system to create a faster transaction ordering system.

In this model, per-transaction commitments replace the grouping of transactions. The Sequencer and the sender complete a Schnorr signature for a specific transaction index, ensuring a commitment to include the transaction at that index. The process involves the sender initiating communication with the Sequencer, receiving an index for the transaction, generating a partial signature, and completing the Schnorr signature. The Sequencer then publishes this information and sends a batch of transactions. If a transaction with the given index is not included in the batch, the Sequencer is penalized. This approach enables instant per-transaction commitments if the Sequencer provides the necessary signature data.

The Schnorr Sequencer, also known as MPC-based Sequencers, offers immediate commitment capability, benefiting low-throughput systems and application chains seeking to operate their own roll-up without the necessary throughput to send batches to Layer-1. In scenarios involving multiple nodes connected via a peer-to-peer network, broadcasting signatures and updating the state tree for each transaction allows for higher throughput processing.

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Other Sequencers: Espresso Sequencer

The Ethereum ecosystem features several Sequencers beyond Optimism's implementation. One notable example is the Espresso Sequencer, designed to address challenges faced by existing Layer-2 architectures. The Espresso Sequencer functions as a decentralized scheduling network for rollups, aiming to provide secure, high-throughput, and low-latency transaction sequencing and availability. It envisions being a shared resource for both optimistic rollup and zk-rollup solutions, allowing rollups to achieve decentralization while benefiting from the advantages of a shared scheduling layer.

Recent plans by the group involved in creating the Espresso Sequencer include involving Ethereum validators through restocking contracts to ensure common security with Ethereum Layer-1.


Sequencers play a crucial role in the Ethereum network, offering significant benefits while also facing challenges. Recognizing the importance of continuous improvement, various groups are working on addressing these challenges. Solutions like shared Sequencer networks, Schnorr Sequencers, and the Espresso Sequencer aim to decentralize Sequencers and enhance the Ethereum ecosystem.

Why is “Proof of Reserves” important for exchanges?

Exchanges play a critical role in the cryptocurrency ecosystem, but issues arising from a lack of transparency have become apparent in recent years. That's where Proof of Reserves (PoR) comes in.

This article explores the significance of Proof of Reserves for exchanges, its definition, its importance, and the exchanges that have implemented it.

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Proof of Reserves Explained

Proof of Reserves (PoR) is a method employed by exchanges to demonstrate that they genuinely hold the funds they claim to possess. This verification is essential as it instills confidence in users that their assets are secure and can be withdrawn from the platform when desired. The Proof of Reserves process typically involves exchanges offering evidence of their reserves through either auditors or allowing users to independently verify them.

Auditors may be engaged, where independent auditing firms review the exchange's financial records to confirm the amount of assets held. They meticulously examine bank account statements and official documents to ensure the reported assets align with the actual reserves.

Some exchanges opt for a more transparent approach by enabling users to directly verify their reserves. This can be achieved through cryptographic proof, such as digital signatures, or a live dashboard displaying the exchange's held funds.

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Importance of Proof of Reserves

Proof of Reserves holds great importance for the cryptocurrency ecosystem. Let's explore the reasons why PoR is crucial.

Ensuring Liquidity: Proof of Reserves primarily ensures the liquidity of cryptocurrency exchanges. By providing transparent proof of reserves, exchanges can demonstrate their possession of sufficient assets to guarantee users' deposits and withdrawals.

Detecting Fraud or Mismanagement: PoR is vital in detecting and preventing fraud or mismanagement in cryptocurrency exchanges. By verifying the actual existence of reserves, PoR helps identify cases where exchanges commit fraud by overstating their reserves, claiming to hold more assets than they truly possess. Such fraudulent behavior can lead to severe consequences, including insolvency and loss of user funds, as exemplified by the case of FTX where mismanagement resulted in user funds being used for other projects without their knowledge. The collapse of FTX resulted in significant user fund losses that could have been prevented had Proof of Reserves been implemented.

Regulatory Compliance: With increasing regulatory requirements imposed on cryptocurrency exchanges, Proof of Reserves has gained significance. Governments across various countries are imposing strict regulations to combat money laundering, ensure customer protection, and promote a secure cryptocurrency ecosystem. Implementing robust Proof of Reserves mechanisms helps exchanges demonstrate compliance with these regulations and establishes a framework for accountability. This has become a pressing issue since the collapse of FTX.

Trust: The aforementioned reasons collectively contribute to the primary purpose of Proof of Reserves: trust. PoR plays a crucial role in building and maintaining trust within the cryptocurrency ecosystem. By implementing transparent mechanisms to verify reserves, exchanges demonstrate their commitment to safeguarding users' funds.

The cryptocurrency industry requires reliable platforms to thrive in the long run. New users must feel confident in placing their money in a secure place. Trustworthy exchanges that implement Proof of Reserves encourage wider adoption of cryptocurrencies, particularly among institutional investors who value transparency and accountability.

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Advantages and Challenges of Proof of Reserves

Let's consider the advantages and limitations of Proof of Reserves. The benefits include:

Enhancing Trust: Proof of Reserves instills trust and confidence in the user community by providing transparent evidence of reserve funds.

Ensuring Payment Ability: PoR verifies the payment ability of exchanges, preventing non-payment situations and bankruptcy, and safeguarding users from potential losses due to mismanagement or fraud.

Detecting Fraud: Proof of Reserves helps identify cases of fraud or mismanagement in exchanges by verifying the actual existence of reserve funds.

Market Stability: PoR contributes to market stability by reducing risks of market manipulation, ensuring exchanges have sufficient reserves to fulfill commitments, and creating a healthier cryptocurrency ecosystem.

Industry Reputation: Proof of Reserves enhances the reputation of exchanges and the entire cryptocurrency industry, potentially attracting more participants.

Customer Safety: Proof of Reserves prioritizes customer safety by providing an unbiased and accurate picture of an exchange's financial reserves, allowing users to choose exchanges that prioritize the protection of their assets.

There are no inherent limitations to achieving a more reliable and transparent industry. Considering the broader context of the benefits Proof of Reserves brings, any challenges pale in comparison to the positive impact on transparency, trust, and security in the cryptocurrency ecosystem.

Exchanges Implementing Proof of Reserves

Many cryptocurrency exchanges recognize the importance of Proof of Reserves and have started implementing this mechanism to enhance transparency and build trust among users. Notable exchanges that have implemented Proof of Reserves include Binance, Coinbase, OKX, Kraken, and BingX.

BingX, in particular, stands out as a leading social exchange known for innovative features such as copy trading. BingX places great emphasis on the concept of Proof of Reserves and has made significant efforts to ensure transparency and security for its users. To provide additional transparency and trust, BingX has pioneered the publication of a verified Proof of Reserves report by Mazars, a reputable auditing firm. The collaboration between BingX and Mazars enhances trust in the authenticity and accuracy of the published Proof of Reserves.

BingX recognizes the importance of establishing a reliable platform between investors and exchanges, especially considering incidents like the collapse of FTX and resulting losses for customers. BingX aims to restore investor confidence in the cryptocurrency industry by promoting transparency and accountability.

Key Takeaways

  • Proof of Reserves ensures that exchanges genuinely hold the funds they claim to have, providing trust and security for users.
  • Proof of Reserves can be implemented through auditors or by allowing users to independently verify the reserves.
  • Trust is critical for the success of the cryptocurrency ecosystem, and Proof of Reserves plays a vital role in building and maintaining trust.
  • The benefits of Proof of Reserves include enhancing trust, ensuring payment ability, detecting fraud, stabilizing the market, industry reputation, and customer safety.
  • There are no inherent limitations to achieving a more reliable and transparent industry. Notable exchanges such as Binance, Coinbase, OKX, Kraken, and BingX have implemented Proof of Reserves.
  • BingX, a leading social exchange, values Proof of Reserves and has published a verified Proof of Reserves report by Mazars to enhance transparency and trust for its users.

Proof of Reserves and trust remain crucial for the cryptocurrency industry's mainstream adoption and legitimacy. Trust-building becomes increasingly important as the industry matures and aims to attract new users, particularly institutional investors seeking secure platforms.

For BingX, trust is an absolute priority. In the future, BingX aims to set a standard for leading practices in the industry, ensuring the highest level of trust for its customers. By maintaining these standards, BingX paves the way for a robust and trustworthy cryptocurrency ecosystem that benefits users and the entire industry.

Things You Need to Know About SUAVE

After Ethereum's merge from Proof-of-Work (PoW) to Proof-of-Stake and the subsequent Shanghai upgrade, the development surrounding this cryptocurrency has not ceased. On the contrary, developers and the community are rapidly advancing, evident through Flashbots and its SUAVE architecture. What is SUAVE, and how can it impact the future of Ethereum?

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What is SUAVE?

Maximal Extractable Value (MEV) is an intriguing concept in the world of cryptocurrency. It describes the maximum amount of value that can be extracted from producing a block. This occurs after validators include or reorganize transactions within any given block.

Once the block reward can exceed the standard block reward, validators can decide to reorganize the block to earn more from fees. This allows them to profit more while increasing transaction costs, all within the rules and principles of the network. However, this can lead to issues such as centralization of power, exclusive transaction flow, cross-domain MEV, and MEV extraction ability. These are some challenges that SUAVE aims to address, among others.

SUAVE stands for Single Unifying Auction for Value Expression and is proposed by Flashbots. This new architecture is an Ethereum Virtual Machine (EVM) compatible blockchain that serves as a shared memory pool and block-building network for all blockchains. It also aims to become a decentralized queue across multiple chains.

SUAVE is being developed to separate the current roles of the memory pool and block-building network from existing blockchains. SUAVE will also provide a highly specialized and decentralized solution, expected to become one of the project's most significant innovations. Sharing the same queue, which SUAVE will provide, can bring numerous benefits to all members of the network, such as:

  • Enabling users to perform optimal transactions with enhanced security and lower fees.
  • Providing open access to user transactions and facilitating block builders' search.
  • Maximizing revenue for validators from their block space.
  • Reducing economic concentration pressure in various fields.
  • Maximizing decentralization and network resilience for the blockchain.

Another notable benefit of SUAVE is its intention to become an open-source project. The SUAVE team has repeatedly stated that they invite everyone, from users and researchers to blockchain developers, to participate and collaborate on the project, which they have been developing for nearly two years.

SUAVE's Goal: Decentralizing and Democratizing MEV-Boost Flashbots, along with many other advancements in the Ethereum network, is driving SUAVE's implementation.

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What is Flashbots?

Flashbots is a research and development group that has been active for quite some time, aiming to improve everything related to MEV.

After the announcement of SUAVE at Devcon, the largest Ethereum conference, held in Bogota, Colombia, we can be certain that Flashbots' development in this field will continue. During the event, Philip Daian, a member of the Flashbots team, made the following statement:

“We will provide users with optimal transaction execution using MEV. So we will use MEV as a decentralized long-term driving force, ensuring that users truly get the best execution on their transactions quickly, making TradFi look very pale.”

The team also gained significant attention when the U.S. Treasury imposed sanctions on Tornado Cash and related transactions. Flashbots responded by open-sourcing their MMEV boost, ensuring that other developers could contribute by creating, deploying, or improving their own censorship-resistant channels.

SUAVE Roadmap

SUAVE is one of the major projects being built on the Ethereum platform. Therefore, having a development roadmap is essential for people to truly consider the progress of this architecture. That's why Flashbots has created and introduced a dedicated roadmap for SUAVE.

SUAVE Centauri: The first phase in the program is SUAVE Centauri, which will introduce sensitive order flow auctions with privacy. Initially, the auction will assume trust in Flashbots, but it will be secure for users and searchers. The SUAVE Chain devnet is also under development in this phase for community testing and experimentation.

SUAVE Andromeda: The next phase will include the SUAVE Chain mainnet, allowing users to express preferences and submit them to the execution market. This phase, called SUAVE Andromeda, will remove reliance on Flashbots through an SGX-based order flow auction. Additionally, building a centralized SGX-based block will enable public and private order flow for concentrated builders.

SUAVE Helios: The final planned phase in SUAVE's roadmap is SUAVE Helios, expected to introduce an SGX-based decentralized block-building network. This will enable private and permissionless block building. Furthermore, Helios will connect a second domain to SUAVE to address MEV across different domains. This will serve as a building block for integrating MEV between different domains in the future. Importantly, MEV solutions across different domains will help enforce or express MEV preferences through different domains.

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Concerns about SUAVE

Although SUAVE has received praise from the community, there have also been objections and concerns regarding this project. This is not uncommon, as the cryptocurrency world is always divided on various issues. So, what are the main concerns related to SUAVE?

First and foremost, the accumulation of value only occurs at the upper layer, which can negatively impact the security of Ethereum. Secondly, some have pointed out that becoming a transaction confirmer (validator) is costly and not accessible to everyone, limiting participation and benefiting from this development. Lastly, according to some opinions, there may be doubts about whether this solution truly helps in censorship resistance. They argue that it only leads to the “best-case plausible deniability.”

These are just some of the main concerns related to SUAVE. While there are no significant threats that render this project irrelevant, it may be worth examining them in the future as SUAVE is developed and deployed, to see if they are truly addressed in the process.


SUAVE is another ambitious project being developed by Flashbots. The goal of this project is to improve MEV and address some of its key issues. The project has been under development for nearly two years, and the team at Flashbots is striving to attract attention and assistance from anyone in the community to contribute to the development and deployment process.