The Target - Binance Exchange. Reengineering.

Once Maxim Melamedov asked me a very interesting question: How many bitcoins does the Binance exchange have? I suggest you count them together with me. It's not difficult.

Why is Binance attracting so much attention in the Bitcoin blockchain? The answer is simple: the largest in size and not only addresses in the blockchain are affiliated with this exchange. A simple user sees with the naked eye the main Binance transaction address: 1NDyJtNTjmwk5xPNhjgAMu4HDHigtobu1s . It is to this address that all bitcoins come, which are sent by users from many sources to this exchange. From it, they also go further into the blockchain.

Accidentally or intentionally, the user may notice another large address that regularly interacts with the main Binance transaction address - 34xp4vRoCGJym3xR7yCVPFHoCNxv4Twseo . In addition, this is the most bitcoin-filled wallet in the blockchain. However, this is not the whole "iceberg".

According to my classification, the Binance exchange program in the Bitcoin Blockchain refers to centralized programs that have a central address around which everything revolves. To protect themselves from malicious hackers or from themselves, such programs often resort to the help of a warehouse address, where they withdraw bitcoins that they do not need to ensure the need for payments to users. I have already indicated both of these addresses.

Like any good program running on the Bitcoin Blockchain, Binance has bitcoin bill acceptors so that it can easily understand who sent them and how many bitcoins. The exchange program empties these addresses at its discretion. Due to the irregularity of this process, remnants of bitcoins remain in the ecosystems of these addresses, and quite large ones.

How to determine that the ecosystem of addresses is a system of Binance bill acceptors? Very simple: they always send bitcoins only to the main transaction address of the exchange. The frequency of replenishment of these ecosystems can show the number of exchange customers who inject bitcoins into it in a specific period of time. Similarly with the withdrawal of bitcoins from the exchange.

Fig 1. Ecosystem 2018-12-20-03/1428 sends Bitcoins to Binance major address.

?Now we can say that we see not only the tip of the iceberg, but also a couple of meters under water. To represent the iceberg more clearly, we need to study the behavior of the warehouse. We have all heard the news like "bitcoins were withdrawn from the largest address in the blockchain!!!”

Oh, the horror! The Bitcoin exchange rate immediately begins to move jerkily towards zero, broken hopes of investors, crying wives, hungry children ... but, here's the trick: the amount that has gone has returned to the warehouse, the Sun also shines over the blockchain during the day, and the Moon at night… And what was it we had? Someone bought bitcoins on the cheap. Who! Right! In fact, this amount of bitcoins did not even reach the exchange, but just "took a walk".

Despite the ruins of the cities-the hopes of investors, the walk of this amount from the warehouse "burned down the office". And now we can supplement our understanding of the Binns iceberg. Let's add to our iceberg the remnants on all ecosystems that participated in such movements from the warehouse. These are ecosystems of Binance auxiliary programs, a kind of its backoffice.

The most interesting thing is that the amount of the balance in these ecosystems at the time of the study is 199999.91339888 BTC. Now we can say that we have seen the whole iceberg. Of course, it is possible that the binance may be part of some larger structure, but until this structure has entered into interaction with already defined ecosystems, we will not be able to see it.

In total, Binance exchange contains 38841.30071082 BTC at the main address, 288126.20532832 BTC in stock, 10677.71007795 BTC in the balances of bill acceptors and 199999.91339888 BTC in affiliated ecosystems. Total: 537647 BTC as of September 11, 2021. It's a lot or a little - it's up to you, dear readers.

Yury Marchenko

P.S. an explanation of the terms can be found in my article about the Bitcoin Blockchain.

?

Table.

Ecosystems of banknote receivers of Binance and the remnants of BTC in them.

?