Prove Reserves

It is reported that Zhao Changpeng, the founder of Coin Security, tweeted that since banks are audited, a bold idea is that perhaps banks should use merkle tree to prove reserves? Some, even if not 100%, we should know some, right? Zhao Changpeng: Maybe banks should use Merkle Tree as proof of reserves Analysis based on this information:Zhao Changpeng, the founder of Coin Security, made a bold suggestion for traditional banks in a recent tweet. He questioned why banks aren’t required to prove their reserves with a technology called Merkle Tree, which is widely used in the cryptocurrency world. Banks are audited and regulated, but Changpeng suggests that proving reserves with Merkle Tree would offer an added layer of transparency. A Merkle Tree is a data structure used in cryptography, which allows for efficient and secure verification of the contents of large data sets. Each branch of the tree represents a hash value, which can be used to verify the…