Zero-Knowledge Proofs: what are zk-STARKs and how do they work? (zk-Stark V2)

What is Proof-of-Reserve and Zero Knowledge Proof?

Proof-of-Reserve (PoR)

Checklist

How does zk-STARK work?
For more technical details, such as how we adjust account numbers to fit the batch size or choose the right hash algorithm, check out this page.
How do I perform self-verification of Proof of Reserves (PoR)?
Log in to your OKX account, go to Assets and select PoR reports
Select Details to view your audit data
Download the OKX open-source verification tool: zk-STARKValidator
Open the zk-STARKValidator; it'll automatically run the JSON file you saved in the folder
How do I verify the zk-STARK total balance and non-negative constraint?
Go to our Proof of Reserve page and select Liability report
Download the OKX open-source verification tool: zk-STARKValidator
Open the zk-STARKValidator; it will automatically run the sum proof data file you saved in the folder
To explore more technical details, our Proof of Reserves system is open-source and available for review and use on github.

Notes

This is a process for cryptocurrency exchanges to show they have enough assets to cover all customer balances. This builds trust by proving the exchange is not hiding any liabilities. The simplest way to show this is by publishing both the exchange's asset amounts and a list of user balances so everyone can confirm:

The total user asset holdings that we claim to hold is the sum of every user's total asset balance

Every user's total balance is more than zero, and their assets are accounted for, covering their liabilities and ensuring that each user has positive net equity

The total value that the exchange claims accounts for every single user, so every user should be able to verify the inclusion of their net value in the total value