What is Tornado Cash? Tornado Cash is an open source, non-custodial, fully decentralized cryptocurrency tumbler that runs on Ethereum Virtual Machine-compatible networks. Let's explore more in this article.
What is Tornado Cash?
Tornado Cash is a decentralized, non-custodial privacy solution based on zero-knowledge proofs and the Ethereum blockchain. By using it, users can improve transaction privacy between deposit and withdrawal addresses and remove linkages in on-chain transactions.
How Does Tornado Cash Work?
By severing the connection between the deposit and withdrawal addresses, Tornado Cash dramatically improves the anonymity of on-chain activity. It makes use of smart contracts to allow customers to deposit ETH, which they can then withdraw via a variety of addresses. A Relayer to withdraw funds to an address with no Ethereum balance increases privacy.
With zkSNARKs proofs, Tornado Cash serves as a mixer to maintain the anonymity of on-chain transactions. These proofs involve two parties:
The Prover – the individual who wants to prove a hypothesis
The Verifier – the individual who verifies the legitimacy of the Prover's claims
Another characteristic that sets Tornado Cash apart is anonymity mining. Through the use of liquidity mining, this feature enables Tornado to reward users who support the project's operations. Through a two-stage protected liquidity mining procedure, Tornado maintains anonymity even during mining.
Users receive Anonymity Points in protected accounts after making a deposit into the Tornado Protocol. These accounts conceal the account balances, addresses, and asset classes owned by users. Once users hit the minimum number of Anonymity Points, they can exchange them into TORN token Tornado Cash's Automated Market Maker (AMM).
It's vital to note that you can only use used Tornado Cash notes to redeem Anonymity Points. As such, the rewarding process requires you to demonstrate zero-knowledge proof on the protocol for it to determine the Anonymity Points you deserve.
What is Tornado Cash? How Does Tornado Cash Work? - Hopefully, this article can help you to get some knowledge.
