Information from A to Z about the Tornado Cash project

• What is Tornado Cash?
• Outstanding features of Tornado Cash
• Pros and cons of Tornado Cash
• Basic information about TORN token
• Conclude

What is Tornado Cash?

Tornado Cash Concept

In the simplest terms, Tornado is a completely decentralized protocol that makes transactions private on the Ethereum network.

Tornado Cash team and development

The information about the development team and development process of the Tornado Cash project is currently not public.

How Tornado Cash Ecosystem Works

First, the user generates a random key (note) and sends ETH or ERC20 tokens, along with sending a hash of the note to the Tornado Cash smart contract. After depositing, users will wait a period of time before withdrawing to improve their privacy. Finally, the user simply submits proof of having a valid key for one of the sent notes and the contract transfers ETH or ERC20 tokens to the specified recipient.

Outstanding features of Tornado Cash

Anonymous mining

In anonymous mining, users will be able to receive TORN through a two-stage protected liquidity mining system to fully protect user privacy. 

After a user deposits money into Tornado Cash, the user accumulates private anonymous points (AP) into a protected account – this account protects your wallet address, balance and does not leak any information. information about your deposit. 

Once the user accumulates enough AP on the user's protected account, the user can decide to convert the AP at any time into a public TORN token through the custom built Tornado Cash AMM. This system is a bit complicated. But it ensures that user privacy is always protected during TORN token validation.

Anonymous mining feature.

zk-SNARK . technology

Tornado Cash uses Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARK) to achieve privacy. When the user decides to withdraw, the user must provide proof that he/she owns the private private key corresponding to one of the smart contract's deposit list. The zk-SNARK technology allows this proof to be verified without the user needing to reveal which exact deposit corresponds to their secret. The smart contract then checks the proof and transfers the deposited funds to the address specified by the withdrawal. This deposit cannot be identified by anyone outside. TORN is the native governance token of Tornado Cash. It is a fixed supply ERC-20 token used to vote on bug fixes and protocol upgrades.

Read more: Easy explanation of zk-SNARKs and zk-STARKs – Proof of Privacy

zk-SNARK technology.

Airdrop

Early adopters of Tornado Cash are the ones who have the right to participate in the management of the protocol. For this reason, early adopters of the protocol will receive a TORN airdrop. TORN will be Airdropped to all addresses that have deposited funds into Tornado 11400000 as a non-transferable coupon. TORN that is not redeemed will be included in the governance contract after 1 year and become part of the DAO Treasury. The redeemed TORN will be available immediately. The amount airdropped depends on the size and timing of the user's deposit – larger deposits and longer deposits will receive more TORN. The coefficients for the deposit size are logarithmic.

Airdrop feature.

Relayer

Relayer is a method to help you use a brand new ETH address (does not contain any ETH). Relayer is used to withdraw to an account with no ETH balance. Relayer sends a withdrawal transaction and takes part of the deposit as compensation (the protocol itself does not charge any fees). Relayer cannot change any withdrawal data including recipient address. The original developers of Tornado Cash do not control or play any role in relaying transactions, the relay network is independent and is run by the community.

Relay feature.

Hidden List

Anonymous list is a list of deposits waiting to be withdrawn. The amount you withdraw can actually be mixed from this list. Basically, Bitcoin or Ethereum transactions are publicly visible. Several solutions have been around for years to avoid this. One of the most popular of these is the trading “mixer”. The mixer would shuffle funds from multiple users together and it would be difficult to determine whose money went where, and how much.

Hidden list.

Decentralized

The Tornado Cash protocol is completely decentralized and community owned. The original developers of Tornado Cash have no control over it and do not run any servers. By owning TORN, users can participate by voting on governance proposals and considering the development of the protocol.

Decentralized.

Pros and cons of Tornado Cash

Advantage

• The interface is simple, easy to use, hosted through the IPFS decentralized protocol, which means anyone can host the interface to use the dApp.
• Ensure safety. Tornado is an application frequently used by hackers to remove traces of ETH hacks in the past, so you can trust that if hackers also use it, it is highly likely that it is very difficult to hack. .

Defect

• Information about the project is not much. Unpublished Roadmap makes it difficult for users to visualize the development process of Tornado Cash and put their trust.

Basic information about TORN token

Basic information about TORN token

Price: 42.79 USD (Price was recorded at the time of writing 06/30/2021).

Market capitalization: 37.8 million USD.

Total supply: 10 million tokens.

CoinMarketCap ranking position: 463.

Functions of the TORN . token

TORN is the governance token of the Tornado Cash ecosystem on the Ethereum platform. It holds the following functionality:

• Governance: TORN token holders make proposals and vote to change the protocol.
• Reward: TORN will be airdropped as a non-transferable TORN coupon (vTORN) that can be exchanged 1:1 to TORN within 1 year.

TORN Token Allocation

TORN tokens are allocated according to the following ratio:

• Airdrop for early Tornado users: 5% (500,000 TORN).
• Anonymous mining for Tornado pools. Cash ETH, distributed linearly over 1 year: 10% (1,000,000 TORN).
• DAO Treasury, will be unlocked linearly over 5 years: 55% (5,500,000 TORN).
• Founding developers and initial backers, will be linearly unlocked over 3 years with 1 year duration: 30% (3,000,000 TORN).

Allocate TORN tokens.

Guide to owning TORN tokens

To own TORN tokens, you can:

• Join the protocol.
• Buy directly on exchanges that support TORN tokens.

Instructions for storing TORN tokens

TORN is developed on the Ethereum ERC 20 platform so you can save it on wallets like:

• Myetherwallet Wallet : Mycrypto,  Metamask . 
• Hardware wallets: Ledger Nano S , Ledger NanoX, TreZor , imToken. 
• Applications:  Trust Wallet , Atomic Wallet.

Exchanges that support buying and selling TORN tokens

At the time of writing TORN has been listed on 13 large and small cryptocurrency exchanges in the world such as: Binance, Poloniex, MXC, Gate.io, Lbank, Hitbtc, etc.

Conclude

Mixing coins is nothing new in the crypto space. Many such services exist today, although not as advanced as Tornado Cash. The Tornado Cash project has gone through many tests, but no serious bugs have been found. Its contracts were audited by blockchain firm ABDK Consulting in December 2019. Analyzed by Ethereum Foundation researcher Dmitry Khovratovich, smart contracts were no big deal at the time. and when conducting security checks, all major issues were resolved.

The project was again audited by Pessimistic a year later, shortly before the launch of the governance model. Pessimistic's report found only minor issues and a low-level administrative exploit that prevented users from voting. However, all the problems were seriously fixed after the audit.

Based on all the information that TraderH4 provided above, hope readers have had an overview of this project.

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