Tornado Cash is a name that has been gaining notable attention recently being a completely decentralized protocol for facilitating the private transactions carried out on the Ethereum blockchain.
Beginning its journey back in the year 2019, Tornado. Cash smart contracts have been implemented within the Ethereum blockchain making the contracts immutable. In addition to Ethereum, the decentralized protocol’s smart contracts have also been deployed on other blockchains.
As far as the factor of security is concerned while dealing with Tornado Cash, it should be noted that the decentralized protocol ensures privacy by breaking the on-chain link between the source of the transaction and the address where it was headed.
Back in the year 2021, Tornado Cash involved an anonymity mining system, the main role of which was to allow the users to earn TORN, a governance token of the protocol. TORN has enhanced the level of participation in improving the protocol.
Earlier, the transactions were fixed per user. This was the time before 2021, until the month of December of the year 2021 when Tornado Cash Nova (beta version) was launched. It was an advanced level of pool equipped with distinct and updated features, which allowed the users to reap the benefits of an arbitrary amount pool and shielded transfers.
Working of Tornado Cash Explained
The process starts with a user depositing an ERC20 token or Ether after generating a random key and is carried forwarded by the user submitting a hash of the note to the Tornado Cash smart contracts. After waiting for some time, the users are required to submit proof of being equipped with a valid key to one of the notes deposited.
Whenever there will arise the discussion related to decentralized and community-owned protocols in the world of blockchain, Tornado Cash will hold a significant position in the list of the most influential ones.