What is Tornado Cash and how does it work?

3 answers

• Nov 24, 2021 · 3 years ago
  Tornado Cash is a decentralized privacy solution for Ethereum that allows users to make private transactions. It works by utilizing smart contracts to create a pool of funds, which are then mixed with other users' funds to obfuscate the transaction history. This mixing process makes it difficult to trace the origin and destination of the funds, enhancing privacy and anonymity. Users can deposit their Ethereum into the Tornado Cash pool and receive a proof, which can later be used to withdraw the same amount of Ethereum from the pool without revealing the original source of the funds. Tornado Cash provides a high level of privacy by using zero-knowledge proofs, which allow users to prove that they have a valid withdrawal proof without revealing any other information about the transaction. This makes it virtually impossible to link the withdrawal back to the original deposit. The protocol is built on Ethereum, making it transparent and auditable by anyone. Overall, Tornado Cash is a powerful tool for individuals who value privacy and want to ensure that their transactions cannot be easily traced on the blockchain.
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• Nov 24, 2021 · 3 years ago
  Tornado Cash is a privacy-focused protocol that allows users to make anonymous transactions on the Ethereum blockchain. It works by mixing users' funds with others in a decentralized manner, making it difficult to trace the source and destination of the funds. This provides a higher level of privacy compared to traditional transactions on the blockchain, where all transaction details are publicly visible. To use Tornado Cash, users can deposit their Ethereum into the protocol's smart contract and receive a proof. This proof can later be used to withdraw the same amount of Ethereum from the pool without revealing the original source of the funds. The mixing process ensures that the funds are effectively anonymized, making it challenging for anyone to track the transaction history. Tornado Cash is designed to be trustless and transparent, with all transactions and operations executed on the Ethereum blockchain. This ensures that the protocol can be audited by anyone and that there is no central authority controlling the funds. It provides individuals with a way to protect their financial privacy in an increasingly transparent digital world.
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• Nov 24, 2021 · 3 years ago
  Tornado Cash is a popular decentralized privacy solution for Ethereum that allows users to make private transactions. It is a non-custodial protocol, meaning that users have full control over their funds throughout the entire process. To use Tornado Cash, users can deposit their Ethereum into the protocol's smart contract. The funds are then mixed with other users' funds to create a pool of anonymized funds. Users receive a proof of deposit, which can be used to withdraw the same amount of Ethereum from the pool at a later time. The mixing process in Tornado Cash ensures that the transaction history is obfuscated, making it difficult to trace the origin and destination of the funds. This provides users with a higher level of privacy and anonymity compared to traditional transactions on the Ethereum blockchain. Tornado Cash is widely used by individuals who value privacy and want to protect their financial information from prying eyes. It is an important tool in the decentralized finance (DeFi) ecosystem, where privacy is becoming increasingly important.
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