A method for demonstrating control of assets, which is incomplete without reliable evidence of liabilities and ownership claims.
Proof of reserves is best understood as part of a system rather than as an isolated definition. Its related coordinates show the mechanisms, incentives and historical records that give the term practical meaning.
Proof of reserves belongs to the documented history and social layer around Bitcoin. Primary records can establish what was published, built or decided; motives, influence and later interpretation should remain separate from those verifiable facts.
Understanding Proof of reserves helps distinguish a verifiable Bitcoin mechanism or historical record from slogans, products and market narratives.
For the clearest picture, read this entry together with Institutional bitcoin custody, Counterparty risk, Asset segregation, Liabilities, Merkle tree. The reverse links also lead from Custodial exchange, Institutional bitcoin custody, Counterparty risk, Liabilities.
Linked to related atlas coordinates
Grounded in a source record
Explains function and trade-offs
Part of the open Bitcoin knowledge graph