Michael Saylor: Onchain Proof-of-Reserves Concerns 🚨
Michael Saylor, co-founder of Strategy (formerly MicroStrategy), spoke out against plans to publish onchain proof-of-reserves, stating security concerns. After the FTX collapse, many crypto firms adopted these measures for transparency, but figures like Saylor argue it increases risks by exposing sensitive information. He recommends traditional auditing with comprehensive transparency about assets and liabilities. Saylor indicates that zero-knowledge proofs might offer a safer way if security is assured through thorough verification processes. Instead of relying on public wallet addresses, he advises proper audits and legal accountability for institutional investors.
FAQ
❓ Why does Michael Saylor oppose onchain proof-of-reserves?
He believes it compromises security by exposing sensitive information and prefers traditional audits and liability assessments.
❓ What alternatives does Saylor suggest to onchain proof-of-reserves?
Saylor recommends institutional-grade audits and comprehensive financial disclosures instead of publishing wallet addresses.
❓ Could zero-knowledge proofs be a solution according to Saylor?
Saylor is open to using zero-knowledge proofs if they ensure security and involve thorough verification with custodians and auditors.