LPOR: A Layered Proof of Reserves Framework for Usable and Publicly Auditable Solvency Verification

Computer Science > Cryptography and Security [Submitted on 6 Jun 2026] LPOR: A Layered Proof of Reserves Framework for Usable and Publicly Auditable Solvency Verification Donggoo Kim, Rajesh Upadhayaya, Milosz Bator, Tao Le Proof of Reserves (PoR) enables centralized crypto exchanges to demonstrate that on-chain reserves are sufficient to cover customer liabilities. However, existing approaches, including Merkle-tree-based proofs and zero-knowledge PoR systems, remain difficult for everyday users to verify in practice, resulting in limited participation and weakened transparency. We introduce LPOR, a layered, usability-focused PoR framework that separates lightweight user-side checks from auditor-level cryptographic verification, enabling non-technical users to verify inclusion and publicly recompute total liabilities with minimal friction. By lowering verification barriers, LPOR increases user participation and substantially improves the probability of detecting omitted liabilities. We evaluate its scalability and omission detectability at a multi-million-user scale. Comments: 5 pages, 1 figure, 4 tables. Accepted at IEEE ICBC 2026 Subjects: Cryptography and Security (cs.CR) Cite as: arXiv:2606.08211 [cs.CR]   (or arXiv:2606.08211v1 [cs.CR] for this version)   https://doi.org/10.48550/arXiv.2606.08211 Focus to learn more Submission history From: Rajesh Upadhayaya [view email] [v1] Sat, 6 Jun 2026 14:56:51 UTC (94 KB) Access Paper: view license Current browse context: cs.CR < prev   |   next > new | recent | 2026-06 Change to browse by: cs References & Citations NASA ADS Google Scholar Semantic Scholar Export BibTeX Citation Bookmark Bibliographic Tools Bibliographic and Citation Tools Bibliographic Explorer Toggle Bibliographic Explorer (What is the Explorer?) Connected Papers Toggle Connected Papers (What is Connected Papers?) Litmaps Toggle Litmaps (What is Litmaps?) scite.ai Toggle scite Smart Citations (What are Smart Citations?) Code, Data, Media Demos Related Papers About arXivLabs Which authors of this paper are endorsers? | Disable MathJax (What is MathJax?)