Proof of Reserves Data Flow

Customer balances and on-chain reserves compared under one signed attestation

Proof of Reserves Data Flow Customer balances and on-chain reserves compared under one signed attestation 01 / Sources 02 / Aggregate 03 / Commit 04 / Verify Customer Ledger · internal balances · 01 / Sources · liabilities Customer Ledger internal balances liabilities On-chain Wallets · reserve addresses · 01 / Sources · assets On-chain Wallets reserve addresses assets Merkle Builder · salted leaves · 02 / Aggregate · hash tree Merkle Builder salted leaves hash tree Reserve Prover · signature checks · 02 / Aggregate · ownership Reserve Prover signature checks ownership Liability Root · committed hash · 03 / Commit · public Liability Root committed hash public Solvency Check · assets vs debts · 03 / Commit · compare Solvency Check assets vs debts compare Customer Verify · inclusion check · 04 / Verify · self-serve Customer Verify inclusion check self-serve Attestation · signed report · 04 / Verify · point in time Attestation signed report point in time customer balances private reserve addresses public liability tree commit total reserves verified total liabilities sum of leaves inclusion proof per customer reserves >= debts signed Legend primary data policy / PII async batch data store

Liability Commitment

  • • Each balance becomes a salted Merkle leaf
  • • The root commits every debt at one instant
  • • Customers get a sibling path, not the full tree

Reserve Ownership

  • • Wallet control is proven by signatures
  • • Only verified addresses count toward reserves
  • • Reserves are summed independently of liabilities

Known Limits

  • • Attestation is point-in-time, not continuous
  • • Hidden off-book debts are not disclosed
  • • Inclusion never reveals another customer balance

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