Tornado Cash addresses several privacy and anonymity challenges in the cryptocurrency realm, especially concerning the traceability of transactions. Initially introduced in August 2019 as an experimental tool, Tornado Cash has since developed into a completely decentralized non-custodial protocol that enables confidential transactions.
Operating on the Ethereum network, Tornado Cash uses smart contracts to maintain privacy by breaking the on-chain connection between sender and recipient addresses. This concept is often called a "decentralized mixer." Due to the protocol's immutable design, no transactions can be altered or interfered with, not even by its developers, which guarantees users a high level of privacy.
Who Were the Minds Behind Tornado Cash?
Roman Semenov, one of Tornado Cash's co-founders, graduated from Moscow State University, where he delved into Quantum Statistics and Field Theory. After completing his studies, he ventured into e-commerce and social media, founding two companies in these industries. By 2017, Semenov transitioned to the crypto sphere, working as Chief Software Architect at a foundation concentrating on Ethereum scalability. In 2018, he established PepperSec, a security consulting agency focused on white hat hacking, which eventually led to the development of Tornado Cash.
Roman Storm, another co-founder of the protocol, boasts extensive experience in tech, blockchain, and software. He has worked as a Software Engineer for companies like Amazon and Marketron, and served as the Chief Technology Officer at the POA Network. Storm also took on the role of Blockchain Developer at Blockchainlabz.nz. Together with Semenov, he co-founded PepperSec and went on to create Tornado Cash.
What Sets Tornado Cash Apart?
Tornado Cash is fully permissionless and operates through self-executing code. In May 2020, the developers permanently destroyed their admin keys, meaning they cannot view or modify any transactions on the protocol. The team emphasizes that their involvement is limited to releasing code on GitHub, maintaining that financial privacy is crucial for freedom.
The cryptographic approach (MPC) used to eliminate their admin keys ensures that transactions on Tornado Cash are, as co-founder Roman Semenov describes, "trustless and entirely unstoppable." This level of anonymity allows transactions on Tornado Cash to potentially bypass sanctions.
The protocol is often criticized for its potential use by hackers to hide stolen funds and has been labeled as a tool for money laundering. Despite the high level of secrecy, some argue there might be a way to track transactions if they involve large deposits and low liquidity.
How Many Tornado Cash (TORN) Coins Are in Circulation?
As of August 2022, there are roughly 1.1 million TORN coins in circulation. The maximum number of TORN tokens available is capped at 10 million.
According to their whitepaper, the distribution of TORN tokens follows this schedule:
5% (500,000 TORN): Airdropped to early users of Tornado.Cash ETH pools
10% (1,000,000 TORN): Allocated for anonymity mining in Tornado.Cash ETH pools, distributed evenly over a year
55% (5,500,000 TORN): Reserved for the DAO treasury, unlocking gradually over 5 years with a 3-month delay
30% (3,000,000 TORN): Allocated to founding developers and early supporters, unlocking gradually over 3 years with a 1-year delay
How Is the Tornado Cash Network Protected?
Tornado Cash operates on the Ethereum network and is safeguarded by zero-knowledge proofs. The protocol and its anonymity mining feature have undergone audits by several professional firms, including Zeropool.
When Did Trading for Tornado Cash Begin?
$TORN started trading in February 2021, following the airdrop of 5% of its total supply (500,000 TORN).
Could TORN Reach $100?
TORN was introduced with a trading value of $214.29 and reached a peak of $436.16 in February 2021. Since then, its value has decreased by 95%.
Where Can You Purchase Tornado Cash (TORN)?
Tornado Cash can be bought at most major centralized and decentralized exchanges such as Binance, Gate.io, Uniswap, OKX, BingX, CoinW, Sushiswap, and Deepcoin. For a comprehensive list of available exchanges, you can find more information here.
