The blockchain ledger, which contains the record of all the transactions that have ever been conducted on a network, is one of the significant features of a cryptocurrency asset and is visible to every blockchain user. Since the creation of the blockchain, it has been marketed as private and anonymous; the phenomenon can not be applied in every case, as wallet addresses under pseudonymous names can still be traced back to the owners in case of an investigation. <\/p>\n\n\n\n
According to research into the viability of the privacy feature of Bitcoin, findings showed that even in digital coins specifically designed to improve anonymity and privacy, it is still possible to track funds as it is transferred to new holders. And in some cases, to de-anonymize the users entirely. In other words, if clues are left over to match one’s identity to a wallet address, users’ crypto assets can be traced by other individuals or firms. Privacy coins like ZCash (ZEC) or Monero (XMR) are one way to keep the private feature of the cryptocurrency alive through maintaining encryption. However, with so many funds already invested across the market, there are better solutions to ensure online transactions remain secure and private \u2014 like Tornado Cash (TORN).<\/p>\n\n\n\n
In this guide, we will evaluate the Tornado Cash network and the mining features that drive the Tornado Cash price increase and the rise in trading volume. We will also discuss the price prediction forecast that highlights the expected minimum price value, average trading price, and maximum price value. <\/p>\n\n\n\n
Tornado Cash is a non-custodial and permissionless privacy solution for the Ethereum blockchain built with zkSNARKs technology. The protocol enables the users to break a link in on-chain activity to improve transaction privacy between the recipient and destination address. Being a complex token mixer, Tornado Cash implements the use of smart contracts that support deposits made in Ether (ETH) that are then withdrawn to other contract addresses. Tracking the original sender’s identity is difficult since the said withdrawal is made from the liquidity pools of the project’s smart contracts. Tornado Cash (TORN) generates a secret hash each time a network user deposits assets to the protocol. Through a process known as commitment, TORN smart contracts accept the deposit along with the hash. The purpose of the “commitment” is to identify the original sender and prove during the withdrawal process that the user, claiming the asset, indeed owns the assets. The user confirms their identity while remaining anonymous on-chain to everyone else by inputting the on-chain hash upon making the request.<\/p>\n\n\n\n
Anonymity mining is another revolutionary feature introduced by Tornado Cash that incentivizes users who support the platform’s privacy features by providing liquidity. Tornado Cash implements privacy even in the process of anonymity mining by syncing a two-stage shielded liquidity mining infrastructure. After depositing assets to the token mixer, users gain Anonymity Points (AP) into a special account called a shielded account. This unique account is highly private as it reveals nothing about the user’s balance, wallet address, or other personal information. When the required number of Anonymity Points (AP) is reached, the user can exchange the AP for TORN tokens through Tornado Cash’s custom Automated Market Maker (AMM). Anonymity Points can only be claimed on Tornado Cash notes that have already been spent by the network users. During the claiming process, the user is required to generate zero-knowledge proof (ZKP) on the platform that calculates the AP according to how many blocks the said user’s note has passed. The calculated amount is then added to the shielded account’s balance.<\/p>\n\n\n\n
TORN is the native token of the Tornado Cash network and an ERC-20 compatible token with a fixed supply that also governs Tornado Cash. TORN holders have autonomous rights to make proposals and vote to make specific changes to the protocol via governance. Restating that TORN tokens can be used for anonymity mining is essential. Tornado Cash also has Anonymity Sets which function whenever users deposit TORN tokens, and they get to receive rewards, hence the anonymity mining.<\/p>\n\n\n\n
Roman Semenov and Roman Storm founded Tornado Cash as a coin mixing service. Roman Storm has worked in many blockchain DeFi projects like 0x, Aave, Compound, MakerDAO, and 1inch while auditing Solidity code and developing smart contracts. Roman Semenov specialized in quantum basics and field theory. They implemented Zcash (ZEC) open-source code in the Tornado Cash network as another privacy-focused blockchain platform. While Zcash might be a standalone privacy coin, Tornado Cash is an anonymity mixer service, making it achieve more significant popularity.<\/p>\n\n\n\n
The development team behind the creation of Tornado Cash implemented a governance model in its functionality where the community members can vote on on-chain proposals with the TORN token so that the protocol can grow while staying fully autonomous and decentralized. <\/p>\n\n\n\n
The total supply of TORN tokens on launch was 10 million TORN which 55% was distributed to the DAO treasury but would be unlocked over five years, 30% was sent to the founding developers and early supporters, and 10% was allocated to anonymity mining. The remaining 5% was distributed through an airdrop to early adopters.<\/p>\n\n\n\n
Tornado Cash is currently worth $<\/b>5.51<\/span><\/span><\/span><\/strong> USD. TORN has moved 0.76%<\/span><\/span><\/strong> in the last 24 hours with a trading volume of