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Protocol to mix them up in liquidity pools and withdraw them to a separate address or address. This way, the protocol helps him to remain anonymous on-chain. But if he uses the protocol without putting upstream and downstream measures in place, he will enjoy partial anonymity. As such, Tornado Cash recommends using a virtual private network (VPN) to bar third parties from establishing that you are leveraging Tornado Cash, deleting your browsing history, and practicing patience since withdrawing the assets immediately after mixing makes it easier for trackers to correlate deposit and withdrawal addresses, and using many addresses. Are you wondering how to use Tornado Cash? Follow these simple steps to enjoy Tornado services: Visit the Tornado Cash website Link your web3 wallet and choose the asset you want to mix Deposit coins and copy your private key Complete the transaction and sign it Wait for some time to withdraw your assets using multiple addresses How Does Tornado Cash Work?Tornado Cash fundamentally enhances the privacy of on-chain activities by breaking the link between the deposit and withdrawal address. It leverages smart contracts to accept ETH deposits, which users can cash out using multiple addresses. Besides, you can use a Relayer to withdraw to an address with no ETH balance, further improving privacy. As mentioned, Tornado Cash acts as a mixer to keep on-chain activities anonymous with zkSNARKs proofs. 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 Anonymity mining is another feature that makes Tornado Cash unique. This feature makes it possible for Tornado to reward users who back the project's operations through liquidity mining. Tornado ensures privacy even in mining through a two-stage shielded liquidity mining process.After depositing funds into the Tornado Protocol, users are rewarded with Anonymity Points in shielded accounts. These accounts do not reveal users' account balances, addresses, or types of assets held. Once users hit the minimum number of Anonymity Points, they can exchange them into TORN tokens via Tornado Cash's Automated Market Maker (AMM). It's important to note that you can only claim Anonymity Points on used Tornado Cash notes. As such, the rewarding process requires you to demonstrate zero-knowledge proof on the protocol for it to determine the Anonymity Points you deserve. The U.S. Sanction on Tornado CashOn August 7, 2022, the U.S. Treasury sanctioned Tornado Cash for allegations of repeatedly failing to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis.The Office of Foreign Asset Control (OFAC), a regulatory agency under the US Treasury responsible for imposing sanctions, confirmed the news, prohibiting US crypto users and businesses from interacting with the protocol. According to the Treasury, Tornado Cash has laundered over $7 billion worth of crypto since it was launched in 2019. However, a report from the cryptocurrency analyst firm Elliptic claimed that only $1.5 billion in funds obtained illegally through ransomware, hacks,

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Tornado Cash made the news in August 2022 when it was sanctioned by the U.S. for allegations of laundering the proceeds of cybercrimes, including over $455 million stolen by a North Korean state-sponsored hacking group.Basically, Tornado Cash acts as a coin mixer. It leverages smart contracts to facilitate ETH deposits and multiple address withdrawals. Withdrawals are made from the Tornado protocol liquidity pools, making it difficult to know the sender's identity. What is Tornado Cash?Tornado Cash is a decentralized non-custodial privacy solution built on the Ethereum blockchain-based zero-knowledge proofs. It enables users to break links in on-chain transactions and enhance transaction privacy between deposit and withdrawal addresses. Tornado creates a secret hash when a user deposits crypto. Its protocol admits the deposits and the hash in a process known as commitment. The commitment identifies the owner of the funds and confirms them during withdrawal. When withdrawing the funds, the user must input the secret hash to prove ownership while maintaining on-chain anonymity. Tornado Cash is community-based – in May 2020, the Tornado developers surrendered the management of the protocol's multi-signature wallet via a contract update referred to as Trusted Setup Ceremony. Therefore, the founders lost control of Tornado, making it a completely decentralized protocol. TORN is the native currency of Tornado Cash. It's an ERC-20 token with a maximum supply of 10 billion coins, and it enables holders to participate in proposals and vote for protocol changes. Besides, TORN holders gain Anonymity Points as they use the protocol, which they can deposit into a protected account and convert into TORN tokens. Why Do People Use Tornado Cash?One of the significant characteristics of crypto is that its underlying technology, blockchain, which maintains a record of transactions that have occurred, is publicly visible. Such a degree of transparency has shown that it's possible to trace assets as they are exchanged and, to some extent, de-anonymize users completely, even in digital currencies explicitly meant to enhance user anonymity. In a period when the screws of surveillance are relentlessly tightening, where does that leave digital assets? Blockchain is only pseudonymous, implying that your identity is concealed, but tracking your transactions isn't. Moreover, since centralized exchanges (CEXs) and other custodians have mandatory Know Your Customer (KYC) and Anti-Money Laundering (AML) Laws, a simple data leak can assist regulators, or even hackers link your personal information with your blockchain transactions. Privacy solutions, such as Monero and ZCash, were launched to solve the blockchain's privacy issue. However, these projects run on their native networks; hence they can't provide privacy to other chains. That is what led to the birth of Tornado Cash. How to Use Tornado CashWhen you mix assets using the Tornado Protocol, you break your blockchain transaction link and enjoy privacy on a public network like Ethereum. For that reason, you can deposit funds into the protocol and withdraw them into a web3 wallet. For example, suppose Josiah wants to conceal 100 ETH on-chain activities. In that case, he can send tokens to the Tornado

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Don't need to worry if you didn't engage in malicious activities, like money laundering.To learn more about privacy tokens, we've covered here about the Secret Network.Frequently Asked QuestionsHow much does it cost to use Tornado Cash?It's more costly to use Tornado Protocol on the Ethereum blockchain. But since it has expanded to support more networks, you can enjoy low-cost transaction costs by leveraging Ethereum alternatives, like Cardano, BNB Smart Chain, Polygon, etc. Apart from the gas fees, you will be charged a relayer fee ranging from 0.05% to 0.2%. Is Tornado Cash safe?The Tornado Protocol and Anonymity Mining pools smart contracts have been audited by Zeropool and ABDK several times and established to be safe. However, when you use Tornado Cash, you expose yourself to smart contract risks. How do I withdraw from Tornado Cash?Navigate to the withdrawal section. Paste the secret code you received when you deposited assets and the recipient wallet(s) to which you want to send the assets, and press the withdraw button. The protocol will create a zkSNARKs proof. Press the withdraw tab to confirm the transaction. Is Tornado Cash traceable? Yes, Tornado Cash is traceable if you can't exact upstream and downstream measures, such as using a VPN to limit third parties from establishing that you are leveraging Tornado Cash, deleting your browsing history, and practicing patience since withdrawing the assets immediately after mixing makes it easier for trackers to correlate deposit and withdrawal addresses and using many addresses.

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