Singapore, 25th Dec 2022 – Westfort Bank has won the coveted award for best trading platform thanks to the bank’s recent publication of its Proof of Reserve, shown to be worth a total of 60 billion dollars.
Earlier this year, the bank successfully proved that it was indeed backing customer assets 1:1. The audit was conducted by a leading global auditing group and the records were verified by numerous trusted platforms all over the world.
This comes at a time when it is important for platforms to show strength in their books. Westfort Bank‘s revelation of its Proof of Reserve stood out to the award committee and has been perceived as a rather welcome development.
According to the Proof of Reserve report, the collateralization methodology took into account the in-scope-assets lent through the margins and loans service offering. These assets are collateralized by out-of-scope assets. Additionally, the Merkle Root compilation was done by hashing all of the client accounts into one output.
In the end, the figure amounted to 60 billion dollars.
What is Proof of Reserves (PoR)?
Proof of Reserves is a transparent auditory practice undertaken by cryptocurrency platforms to prove unequivocally that their companies’ assets are indeed worth what they claim it is. More than anything, it is a way for crypto companies to show the healthiness of their platforms.
A cryptocurrency platform with more assets than liability as – shown by its Proof of Reserves – displays to the world that it does indeed have everything it takes to back up trading on its platform and avoid any issue with liquidity in the future.
Proof of Reserves also builds customer trust and sets a platform apart from others. This is one of the reasons the board overseeing the award chose to bestow the award on Westfort Bank.
To carry out a proper Proof of Reserve showcase, a cryptocurrency platform must allow third-party auditors access to its cryptographic signatures. This serves as a sort of window through which they gain access to the important ledgers necessary to carry out the audit.
The cryptographic signatures represent total customer assets. A proper Proof of Reserve aims to show that these assets are in line with what the customers deposited. They may be held in a 1:1 ratio, which shows that the platform has exactly what the customers deposited.
They could also reveal a number much higher, which shows that the platforms have a greater amount than what the customers deposited. Both equal and greater ratios are signs of a healthy platform.
A lower figure, however, shows that the platform does not have what the customers deposited, are not worth what they claim to be worth, and are indeed at a high risk of liquidity crisis in the near future.
An Important Year for Crypto
To say that it has been quite an important year for cryptocurrency would be something of an understatement. There have been several noteworthy experiences and milestones worth celebrating. Adoption reached impressive levels and enthusiasts found a lot of reasons to keep going.
It should be mentioned, though, thanks to the blatant display of carelessness by some platforms, a few in the space became skeptical. And the need for proof of reserve declaration became even more important.
Decentralized platforms like Westfort Bank continued, however, to show themselves as a beacon of hope. As customers sought reassurance, these platforms provided it.
Of course, customers weren’t the only ones seeking reassurance. Federal Regulators also looked to set better industry standards to protect consumers.
Proof of Reserves, thanks to transparency, was one of the most prominent methods through which they sought to achieve their goals. But proof of reserve declaration can be tricky, and a lot decided to not go through that route.
But while many shied away from the responsibility, a few rose up to the challenge and Westfort Bank was one of them.
The Impact of PoR on Award Winning Westfort Bank
To the board in charge of the best trading platform award, the decision of who to give the award to has always been a tricky one. It must, after all, go to a platform that has done enough to propel genuine growth in the industry while inspiring hope from both enthusiastic and lethargic observers.
This year, apparently, the decision to give the award to Westfort Bank was a pretty straightforward one. Looking back, experts say, it is not difficult at all to see why.
Despite the reluctance of many platforms to reveal their proof of reserve, Westfort Bank stood up and showed what they were worth. The mere display of transparency alone was enough to leave people feeling confident again.
But showing willingness is one thing, being able to back it up with sound numbers is another. Westfort Bank is a pretty established platform managing a lot of volume on a daily basis. Having a sound figure of 60 billion dollars in reserve doesn’t show a company just getting by, it shows a company that is truly thriving and is on its way to greatness.
Again, the importance of this strength at such a murky time can not be overstated. And that is why the award was especially welcome, not just by the executives of Westfort Bank and their traders, but by the crypto world in general.
As expectations continue to rise in the world of crypto, it is important to see platforms like Westfort Bank take charge and show good examples. The promise offered by cryptocurrency is huge, and it can only be realized by innovative platforms with an emphasis on transparency.
For observers familiar with the company, it is clear that this tenet has always been the approach through which Westfort Bank made all their major decisions. It was this same tenet that prompted the decision to show their Proof of Reserve, and it is the same tenet that has won them this award.
No one knows what the future will bring. But if one thing is clear, it is the fact that while things may appear murky now, the future is nothing but immensely exciting.
Organization: Westfort Bank
Contact Person: westfort media
Address 1: 2 Battery Rd, #11- 02, Singapore 049907