Michael Saylor Opposes Onchain Proof-of-Reserves
Michael Saylor warns that onchain proof-of-reserves could lead to cyberattacks, supports traditional audits for security.
- Michael Saylor calls onchain proof-of-reserves a security risk
- Strategy avoids public wallet disclosures to protect users
- Prefers conventional financial audits over blockchain transparency
MicroStrategy co-founder Michael Saylor has voiced strong concerns about the growing trend of using blockchain-based proof-of-reserves. In a recent discussion, Saylor argued that making wallets and reserve information public on-chain could be a serious security threat.
Instead of adopting onchain verification methods, MicroStrategy is choosing a more traditional path—external audits. Saylor believes this approach provides better protection for both users and institutions, keeping sensitive data out of public view.
Security Risks Behind Public Wallets
Saylor’s key argument is centered on cybersecurity. Publishing wallet addresses as part of an onchain proof-of-reserves process makes them visible to the entire internet. This, he warns, invites hackers and puts billions of dollars at risk.
Cyberattacks and data breaches have become increasingly common in the crypto world. By keeping wallet addresses hidden and avoiding public blockchain disclosures, companies can limit exposure and improve safety for users and stakeholders.
Choosing Trustworthy Audits Over Blockchain Transparency
Rather than embracing blockchain transparency, Saylor believes in the credibility of conventional audits. These audits are conducted by licensed professionals who review a company’s holdings in a controlled, private environment.
While some in the crypto community see onchain proof-of-reserves as a step toward transparency, Saylor stresses that real accountability comes from trustworthy audits, not public exposure. This approach, he says, builds trust without creating new security vulnerabilities.
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