In January 2021, Ledn started providing Proof of Reserves to its users, becoming the first crypto lending platform in the market to do so. The company has been following through with their initial objective of offering attestation every six months. As of January 31 2022, at 11:59 PM EST, all the user balances on the Ledn platform were previously included in their latest attestations. In the past year, many more companies have followed Ledn in offering their Proof of Reserves implementations, but Ledn was the one that continued to deliver on its promises. Ledn's innovation has played a significant role in making the crypto industry more scalable and legitimate. However, despite the undeniable growth last year, Ledn has a long way before their innovation becomes an industry standard.
What is Proof of Reserves?
Proof of Reserves is an attestation process where an independent accountant reviews Ledn's custodial and lending balances along with the user's asset balances. It is to make sure that the company appropriately accounts for all client assets.
Ledn aims at providing maximum assurance to users that their investment assets are thoroughly and accurately accounted for on the platform. Its Proof of Reserves is one of the ways Ledn delivers on this value. By working with an independent top-25 accounting firm, Armanino LLP, Ledn assures their clients that all their investment assets are accounted for to the cent at all times.
Privacy with Transparency
User privacy is strictly maintained by anonymizing the data sent to Armanino LLP so that no personally identifiable information is ever shared. To ensure that a user's private data is never leaked to any third party during the process, Ledn uses its own unique hashed ID. This way, clients can verify their assets without compromising on confidentiality.
Ledn has planned to continue with its Proof of Reserves offerings and make them available semi-annually or every six months. So, if you have missed out on this round, you can deposit your assets today on the Ledn platform and get selected in the next round of Ledn's Proof of Reserves. Whenever a new Proof of Reserves attestation is available, all Ledn users would get notified to review it.
While Ledn provides a good yield on crypto assets, it is worth looking at other options available in the market. For example, BlockFi, Celsius Network and CoinLoan are some of the safest crypto lending platforms out there. At Bitcompare, you can also compare these platforms to find the best one for you.