How to Verify Bybit's Ownership of Wallet Addresses and Their Balances

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Introduction to Proof of Reserve Verification

Bybit provides transparent verification methods for users to confirm wallet address ownership and asset balances through its Proof of Reserve system. This process ensures trustworthiness by leveraging blockchain technology and third-party audit principles.

Verifying Bybit's Ownership of Wallet Addresses

Bybit utilizes a "Send to Self" method to cryptographically prove ownership of published wallet addresses. Here's how the verification works:

Key Steps in the Ownership Verification Process

  1. Randomized Transfer Amount Calculation

    • Based on Bitcoin blockchain data from December 11, 2022 (Bybit's first audit timestamp)

    • Formula:

      Transfer Amount = First 3 digits of Nonce / 1,000,000
    • Nonce value taken from the first block generated after UTC 12:30 on audit date

  2. Anti-Fraud Mechanisms

    • All published addresses complete identical transfers simultaneously
    • Transactions are cryptographically signed by Bybit's private keys

  3. Transaction Transparency

    • All transaction hashes are publicly disclosed
    • Verifiable on blockchain explorers like Blockchair

  4. TRON Blockchain Special Case

    • Asset transfers between published TRON addresses serve as proof (self-transfers not supported)

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Verifying Asset Balances in Wallet Addresses

Blockchain's transparent nature allows anyone to verify asset holdings. Bybit provides multiple methods for different cryptocurrencies:

Bitcoin (BTC) Balance Verification

  1. Using Blockchair's Wallet Statement Tool

    • Enter BTC address in Blockchair's search
    • Navigate to "Wallet Statement" section
    • Select snapshot date to generate balance report

  2. Important Notes

    • Bybit maintains 4 BTC addresses (sum represents total holdings)
    • Minor discrepancies may occur due to UTXO model limitations

Ethereum and Stablecoin Balance Verification

Bybit offers a Python-based tool for checking balances across multiple chains:

  1. Supported Networks

    • ETH, Arbitrum, BSC, Optimism, Polygon, Avalanche, Tron

  2. Verification Steps

    # Installation and execution:
1. Install Python 3.x
2. Download tool from [GitHub](https://github.com/bybit-exchange/balance-checker)
3. Run: python3 balance-checker.py

  3. Troubleshooting Tips

    • Use alternative node services (Infura/Alchemy) if needed
    • Allow several minutes for complete verification

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Frequently Asked Questions

How often does Bybit update its proof of reserve?

Bybit conducts regular audits, typically quarterly, with all verification data publicly accessible.

Why might my balance verification show slight discrepancies?

Blockchain data aggregation tools may have latency, and UTXO-based chains like Bitcoin don't store historical balances by default.

Is the Python verification tool safe to use?

Yes, the open-source tool only reads blockchain data and doesn't require private keys or sensitive information.

How can I verify transactions on TRON network?

For TRON addresses, check inter-wallet transfers instead of self-transfers, as the network doesn't support the latter.

What's the purpose of the random transfer amount?

This cryptographic method prevents spoofing while demonstrating actual control of wallet addresses.

Conclusion

Bybit's transparent reserve verification system combines blockchain technology with rigorous auditing practices. By following these verification methods, users can independently confirm:

The multi-chain approach accommodates various cryptocurrencies while maintaining consistent verification standards across networks. Regular audits and public disclosure of verification data reinforce Bybit's commitment to transparency and user trust.