Tornado Cash
Tornado Cash is a decentralized protocol that allows users to conduct anonymous transactions on the Ethereum network using zk-SNARKs. It acts as a cryptocurrency mixer, obscuring the connection between the sender and recipient addresses, enhancing privacy.
Tornado Cash operates on smart contracts. Users deposit ETH or other ERC-20 tokens into the Tornado Cash pool. The protocol generates a one-time privacy code. When the user wishes to withdraw funds, they provide this code, proving ownership without revealing the original deposit address. This is achieved through zero-knowledge proof.
Tornado Cash's advantages include enhanced transaction privacy, protection from tracking, and censorship. However, it can be used to launder illicit funds, raising concerns among regulators. Despite accusations of funding illegal activities, Tornado Cash developers claim to have created a privacy-protecting tool and are not responsible for the actions of users.
Source: https://www.tumblr.com/bbs-news-ru/798020764279455744/tornado-cash?source=share
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