The following is an overview of how FIO Procol, using Attestations, be used as a solution for Proof of Reserves for CEX or any other centralized entity.
Centralized Exchange (CEXes) typically do not disclose blockchain accounts holding user funds and even if they do, there is no proof they control it.
CEXes do not disclose user balances, so the liability side is not known.
Users do not know if the (CEX) has enough funds to cover user withdrawals.
Decentralized way to prove the CEX has enough funds to cover all user liabilities.
FIO Crypto Handle already used to aggregate multiple blockchain accounts behind a single human readable name, e.g. treasury@cex
Map all its accounts from all blockchains and record a signature proving they control the private key.
Continuously update balances for each of their accounts providing only account number hash and balance for all tokens
CEX user account balances can be easily and in a decentralized manner be compared to CEX treasury holdings.