BC. GAMEClaim 5BTC Now

What is Tornado Cash (TORN) token, DeFi privacy solution?

BC. GAMEBCGAME - The best casino, 5BTC free daily bonus!BC. GAME Free 5BTC Daily Bonus!
Register now

Tornado Cash is another solution to the problem of privacy and anonymity in transparent public blockchains. The protocol guarantees that a user can break a link in a chained operation in order to improve transaction privacy between the recipient and the destination address.

What is Tornado Cash and How Does It Work?

Tornado Cash is a decentralized, non-custodial privacy solution built on Ethereum. It improves transaction privacy by breaking the link in the chain between recipient and destination addresses. Tornado Cash uses a smart contract that accepts ETH and ERC-20 deposits. These deposits can be withdrawn from any address on the network. Whenever an asset is withdrawn via the new address, there is no way to link the withdrawal to the deposit, ensuring asset privacy.

Tornado Cash uses zero knowledge proofs (zk-SNARKs) to gain privacy. When a user decides to make a withdrawal, the user must provide proof that they have a secret corresponding to one of the smart contract deposit lists. The zk-SNARK technology allows this proof to be verified without the user having to reveal which exact deposit corresponds to his secret. The smart contract then verifies the proof and transfers the deposited funds to the address specified by the withdrawal transaction. No outside observer is able to determine which deposit this withdrawal is linked to. TORN is the native governance token of Tornado Cash. It is a fixed-supply ERC-20 token used to vote on protocol updates and fixes.

Other Privacy Protocol Alternatives

Tornado Cash is not the first solution to privatize Ethereum transactions. Various methods have been tried, including supervised mixing services, centralized foreign exchange portfolios, etc. However, all of these solutions pose some degree of monitoring risk, making them unsuitable as a security solution. And no one has ever reached the level of privacy and anonymity offered by coins like Monero and Zcash.

Zcash sets the standard for cryptocurrency in privacy

Zcash is the basis for many new projects, including Tornado Cash. Zcash uses several cryptographic solutions, including Zero-Knowledge Proofs. In Monero, a multikey system using the “view” and “spent” keys with public and private versions introduces privacy. Monero also includes three cryptographic snippets to hide its transaction components from public view. Tornado Cash is built using open source search by the Zcash team. They applied it to Ethereum so that users can now submit Ethereum anonymously.

Privacy obtained with Tornado money

Tornado Cash achieves privacy by breaking the online link between the token recipient and their address. The Tornado Cash smart contract takes the ETH deposited into it, combines deposits and transactions, and then distributes the tokens to different addresses when withdrawn.

This means that any smart contract withdrawals cannot be linked to the deposit address, which creates privacy for the tokens at the new address.

In essence, Tornado Cash is acting as a proxy to create anonymity in Ethereum transactions. They use the Non-Interactive Argument and Zero Knowledge Succinct of Knowledge Evidence (zk-SNARKs) to do this. These proofs are also used by Zcash.

In the zk-SNARKS cryptographic proofs there is a Prover and a Verifier. The Prover has the task of proving some hypotheses, while the Prover is there to determine the veracity of the Prover's claim. The basis of zero knowledge proofs is that possession of some information can be proven without revealing what the information really is.

A real-world example is when you call a financial institution and they ask for the last four numbers of your CPF. They use this information to prove it's you, without having to reveal your full social security number and putting you at risk for identity theft.

Tornado Cash Secret

When a deposit is made into the Tornado Cash Smart Contract, it generates a “secret” with an associated hash. This hash is called a “commit” and is sent with the deposit to the Tornado smart contract.

The smart contract accepts the deposit and the associated commitment and adds them to the list of deposits it maintains. To make a smart contract withdrawal, the user must provide a secret corresponding to the pledge of some unused funds in the deposit list.

You cannot withdraw without your “secret” or note. Photos via app.tornado.cash
This is where zk-SNARK comes in. Using this technology, Tornado Cash can accomplish the task without revealing any specific deposit corresponding to the secret. The smart contract can then release the appropriate amount to the pickup address so that the tracker is still unable to determine the source of the smart contract freed amount. So, in essence, Tornado Cash works like a mixer, mixing deposits and withdrawals so they can't be linked.

Anonymous set

Tornado Cash Anonymous Set exists to show deposits that are in the smart contract and pending withdrawal. It will also show the deposit amount that can be accessed when making a withdrawal.

The larger the anonymous set, the more private your withdrawals will be.
This also presents two options for the checkout process:

You can use a wallet like MetaMask; in that case, you will need a new address that also contains some ETH. The tricky question here is how to add ETH to a new address without giving up your privacy.
You can use Tornado Cash Relayer along with a new Ethereum address to maintain complete privacy and anonymity.

Tornado Cash Relayers

Relayer lets you withdraw funds to any address, even those without ETH. By using a new withdrawal address, it means there is no way to link the withdrawal to any particular deposit. So there are no more trails to follow that lead back to any address that might be linked to you. Also, developers have no control over Relayer, so they cannot make changes to the retirement data.

Introduction to Tornado Cash

When you plan to start using Tornado Cash, there are several steps you can take to ensure the best privacy and anonymity. You'll want to start with a new browser, a new wallet, and a new IP address to start from scratch. This is necessary because your ISP and other online organizations will have access to your IP address at every hop between the browser and the destination server. This makes all information transferred along this route publicly available.

Read also   Hidden gems: These promising cryptocurrencies signal a bullish breakout

Your ISP is able not only to record your IP address, but also the timestamps of all data packets sent to Relayer. This information should theoretically be enough for them to build a connection between your wallet and the time stamps of Tornado Cash withdrawals. That's why it's important to use a VPN to obfuscate your IP address, especially when making withdrawals.

In addition, any remote procedure call made to your wallet can also link it to any withdrawal request. Of course, most of them are not suitable for the average user, but they are needed for complete anonymity. We know that convenience is often the most important factor and that most RPC and dApp nodes, while being able to track their transactions, will not actually record this data. But if privacy and complete anonymity are a concern, these steps will ensure your transactions remain private.

How to use Tornado money

As mentioned above, when depositing money into Tornado Cash, you will receive a “secret”. Keep it in a safe place as you will need it later to retrieve the tokens. If you lose your secret, there's no way to get your money back.

  • We have revised the above requirements to create a new wallet, new browser, and new IP address. Do this first.
  • Decide which token you will send. You can deposit ETH or another ERC-20 token. Decide the amount and click 'Deposit' and confirm the transaction.
  • Wait a while (minimum recommended 24 hours).
  • Remove with MetaMask or Relayer – If it is MetaMask, you will enter “secret” and click on the “Settings” icon. Select MetaMask as the wallet option and click 'Save'. Enter your MetaMask address and click 'Remove'. Then sign the transaction and wait for it to process. If it's Relayer, you just need to enter your “secret” and address and click 'Remove'.

Tornado Cash Team

Tornado Cash was created with the principle of promoting those who deserve privacy as a basic human right. The founders believe that the more people who embrace this philosophy, the safer each of us will be.

The development of Tornado Cash is sponsored by PepperSec, a consulting agency in security audits and custom development. PepperSec's CEO is Alexey Pertsev, however he is not listed as involved in the development of Tornado Cash.

The two co-founders of Tornado Cash are Roman Storm and Roman Semenov. They are also the founders of the aforementioned PepperSec.

roman storm has a degree in Metallurgical Engineering, but has worked primarily as a software developer since 2011. Previously, he worked for Amazon and was a software engineer. blockchain for Blockchainlabs.nz, employee. In building ICO contracts, writing ERC-20 tokens and auditing code soundness. At PepperSec, he worked on several DeFi projects, including AAVE, 0x, 1inch.exchange, dydx, Compound, and makerdao.

Roman Semenov is an expert in quantum statistics and field theory as well as a serial trader. Before co-founding PepperSec and Tornado Cash, he also co-founded Viking Studio, a Russian social media marketing company, and RedHelper, a service dedicated to driving e-commerce conversions.

Anonymous Mining

The Tornado Cash protocol rewards any user who chooses to add to the Anonymous package with TORN, the protocol governance token. The team calls this Anonymous Mining. The team found it couldn't use a typical liquidity-mining setup like traditional DeFi, because users would inevitably reveal how long they kept deposits in the pool. This will destroy Tornado Cash's core privacy. Anonymous mining overcomes this by providing users with a protected liquidity mining system where they can obtain TORN tokens.

Anonymous mining works like this: depositing money in Caixa Tornado results in the creation of a private Anonymous Point. These points are sent to a secure account to protect the privacy of your wallet's deposit, balance, and address information. Once enough anonymous points have been collected, users can convert them to TORN tokens in a secure claim transaction.

TORN token

Whenever you use Tornado Cash, you are also mining TORN tokens through Anonymous Mining. This means that the more you use Tornado Cash, the more TORN tokens you earn. And the more TORN tokens you have, the greater the impact you will have on future decisions that affect the platform.

TORN is an ERC-20 token with a fixed supply of 10 million tokens. It is considered a symbol of governance to make protocol proposals and vote on the outcome of those proposals. It is not issued for fundraising purposes and is not intended to be an investment or speculative opportunity.

The distribution of tokens is as follows:

  • 5% (500.000 TORN) will go to first users via an airdrop.
  • 10% (1.000.000 TORN) for anonymous mining.
  • 55% (5.500.000 TORN) goes to the treasury and is unlocked linearly over 5 years.
  • 30% (3.000.000 TORN) goes to founding developers and initial sponsors.

What is the Price Forecast for the Tornado Cash (TORN) cryptocurrency?

The Tornado Cash price is forecast to peak at $80.21 throughout 2022.
As early as 2023 according to our crypto price prediction index, Tornado Cash (TORN) could reach a maximum level of $154.36, with the average trading price of $114.79.

In 2025 according to our crypto price prediction index, TORN should cross an average price level of $186.09. The minimum expected price of Tornado Cash at the end of the current year should be $171.83. Additionally, TORN can reach a maximum price level of $189.66.

Where to buy the TORN token?

The TORN cryptocurrency can be traded on the following exchanges:

  • Binance
  • OKEx
  • Gate.io
  • ZT

Conclusion

One of the main philosophies of the early cypherpunks was privacy. Tornado Cash helps restore this to some extent, allowing individuals to maintain their privacy, anonymity and, ultimately, freedom from interference by governments and third parties. Whether this poses problems for regulators or not, but if we follow the lead of Zcash and Monero, there are certainly ways for projects to focus on rights. The private sector can work closely with regulatory authorities.

More information about TORN

Disclaimer: The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Total
0
Shares

Related articles