After the FTX and Genesis disasters, could the FIFA World Cup be a turnaround for cryptocurrencies?
The 2022 World Cup in Qatar officially began on November 21. The World Cup has garnered worldwide attention as a four-year sporting event. Many cryptocurrencies also appeared during the FIFA World Cup.
Crypto.com became one of the sponsors of this World Cup, and FIFA also published NFT digital video collections on Algorand.
The FTX tragedy continues to have an impact on the cryptocurrency industry, and both investors and practitioners need strong confidence to come out of the panic. The World Cup has attracted the eyes of 5 billion people around the world. This global event is undoubtedly an opportunity.
But we also have to admit that no matter how much attention Binance or Crypto.com get from FIFA, which is not useful for the trust of crypto industry. If we wish to fix the fundamental problem, we can only start with the healthy development of the crypto industry itself.
In today’s world, where supervision is imperfect, industrial self-discipline is especially crucial. As a result of the FTX incident, an increasing number of crypto exchanges have chosen to post their own proof of reserves.
Whether it’s a well-known exchange like Binance or a rising star like MEME. They all have told us that exchanges with strict management and responsibility to users are still the mainstream of the industry.
On November 10, MEME Crypto Futures Trading Exchange will publish the Proof of Reserves to increase transparency. At the same time, MEME is studying Merkle Tree’s Proof of Reserves solution. And we will regularly provide third-party audit reports issued by global authorities.
How does Merkle Tree work?
Merkle Tree is one of the Proof of Reserves schemes that MEME Crypto Exchange intends to take. It is a tree that stores hash values. In a complex data structure, all data groups are linked together like branches and leaves. Any small adjustment will change the overall data result. So the validation of Merkle Tree data is more complex and accurate.
As shown in the figure, we have 4 pieces of data at the bottom layer, and each piece of data is the balance and id of a user. We hash the four data separately to form the leaves of the Merkle Tree, and the top node is called the root.
When any of the following nodes changes, the hash value of the root of the tree will change. Under such a structure, the financial fraud of the company will be immediately identified. This recording method using smart contracts is even more difficult to tamper with than the traditional bank’s deposit reserve system.
In addition, MEME Crypto Exchange also mentions Proof of Finance, which is a document that discloses asset reserves in real time and an important means of verification of reserves.
Whatever the impact of FTX or DCG, risks will be gradually released similar to the Luna and Mt.Gox in the past. Nothing can beat blockchain and cryptocurrency.
The crypto industry will still recover from the suffering and enter a new round of economic cycle. After each ‘FTX’ incident, we found that crypto exchanges did not die, but became more standardized and safer. Although there is still a long way from the ideal, platforms like Binance and mmex.cc have been working hard.
There is an ancient Chinese poem ‘wild fire burn, born again when the spring breeze blows’. Let’s look forward to cryptocurrencies will rise from the ashes.
mmex.cc