Proof of Reserve (PoR) is an audit program that proves to users and the public that the deposits match their balances through cryptographic proofs, wallet ownership checks, and repeat audits.

Merkle Tree is a cryptographic tool primarily used to efficiently verify data integrity. It is able to consolidate large amounts of data into a single hash value. This hash value is known as the Merkle Tree Root, which is an encrypted field that is generated based on the aggregation of all the information entered. As a result, the user can verify the contents of a particular “sealed” dataset through the Merkle tree. In Bitunix's Proof of Reserve, we use Merkle trees to prove that individual user account assets are held 1:1.

To prove that Bitunix holds all user assets at a 1:1 ratio, we constructed and implemented a Merkle tree and allowed users to verify their assets within the platform.In Bitunix Proof of Reserve, each Acct node at the bottom of the Merkle tree represents an individual account, and each account's balance and account name will be encrypted and computed once by SHA256, and the resulting hash value is then calculated again with the neighboring hash value, and so on, layer by layer, to finally get the root of the Merkle tree. If users want to verify whether their personal assets are intact in the platform, they only need to follow the steps of hash calculation of their own account first, then find the location in the tree and the neighboring nodes, and then calculate the hash layer by layer upward until finally reaching the root of the tree calculated by the user. If the root of the tree calculated consistent with the official result, then it proves that the reserve is complete and error-free, that is, the platform has stored the user's funds intact.

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