In latest developments, Binance CEO CZ, has recommended that all crypto exchanges should do merkle-tree proof-of-reserves. He further suggested that crypto exchanges should not run on fractional reserves, unlike banks.

CZ reassured his 7.3 million Twitter followers that Binance would also start proof-of-reserves for full transparency in order to avoid future doubts and concerns about the reserve balance.

A Merkle tree, commonly referred to as a Hash tree, is a type of data structure used for data synchronization and verification. It is a tree data structure where each non-leaf node is a hash of its child nodes. It maintains data integrity and uses hash functions for this purpose.