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About Tornado Cash
Key Points
- Tornado Cash is a decentralized, non-custodial protocol for private transactions on the Ethereum network.
- Founded by Roman Semenov and Roman Storm in 2019.
- Utilizes smart contracts and zero-knowledge proofs for anonymity.
- 1.1 million TORN coins in circulation, with a maximum supply of 10 million.
- TORN tokenomics: 5% airdrop, 10% anonymity mining, 55% DAO treasury, and 30% for founders and supporters.
- Secured by Ethereum network and audited by Zeropool.
- Trading began in February 2021, with
Introducing Tornado Cash: A Beacon of Privacy in the Cryptoverse
Introducing Tornado Cash (TORN): A Revolutionary Privacy Solution
Tornado Cash seeks to address the pressing concerns of privacy and anonymity in the cryptocurrency realm, particularly with regard to the traceability of transactions. Initially launched as an experimental software in August 2019, Tornado Cash v1 has since evolved into a fully decentralized, non-custodial protocol that enables private transactions with utmost discretion.
Tornado Cash leverages the Ethereum network’s smart contracts to facilitate unparalleled privacy. By severing the on-chain connection between the sender’s and recipient’s addresses, the protocol ensures an unprecedented level of anonymity. This innovative technology is often referred to as a “decentralized mixer.” The immutable nature of the protocol guarantees that transactions are immutable, tamper-proof, and even beyond the control of its developers, thereby providing users with the highest level of privacy assurance.
The Visionaries Behind Tornado Cash: Unveiling the Founders
Roman Semenov, co-founder of Tornado Cash, holds a degree in Quantum Statistics and Field Theory from Moscow State University. After completing his studies, he ventured into e-commerce and social media, successfully establishing two companies in these domains. In 2017, Semenov transitioned into the cryptocurrency realm, serving as Chief Software Architect at a foundation dedicated to enhancing Ethereum’s scalability. The following year, he founded PepperSec, a white-hat hacker security consultancy, which ultimately paved the way for the creation of Tornado Cash.
Roman Storm, another co-founder of the protocol, boasts an impressive pedigree, with a storied career spanning the tech, blockchain, and software realms. Notably, he has held positions as a Software Engineer at Amazon and Marketron, and served as Chief Technology Officer at the POA Network. Additionally, Storm has worked as a Blockchain Developer for Blockchainlabz.nz. In tandem with Semenov, he co-founded PepperSec and spearheaded the launch of Tornado Cash.
Unveiling the Unparalleled Advantages of Tornado Cash
Tornado Cash operates on a completely permissionless basis, driven by self-executable code. In May 2020, the developers took the bold step of relinquishing their administrative keys, thereby relinquishing any ability to access or manipulate transactions within their protocol. The team emphasizes that, aside from publishing code on GitHub, they have minimal oversight over the protocol, underscoring their conviction that financial privacy is a cornerstone of individual freedom.
The cryptographic technique of multi-party computation (MPC) employed to relinquish administrative keys ensures that transactions on Tornado Cash are, in the words of co-founder Roman Semenov, “trustless and utterly unstoppable.” The elevated level of anonymity afforded by this method implies that transactions on Tornado Cash may even potentially circumvent sanctions.
The protocol has faced criticism for its exploitation by hackers, who utilize it to conceal their illicitly acquired funds, and has been implicated as a conduit for money laundering. Notwithstanding the protocol’s exceptional secrecy, some have posited that it may be possible to trace transactions in instances where large deposits coincide with low liquidity.
What Is the Circulating Supply of Tornado Cash (TORN) Coins?
As of August 2022, the circulating supply of TORN coins stands at approximately 1.1 million. Notably, the maximum circulating supply of TORN is capped at 10 million.
As outlined in their whitepaper, the TORN token’s economic model and issuance timeline are structured as follows:
A limited allocation of 5% (500,000 TORN) has been reserved for an airdrop, exclusively benefiting the pioneering users of Tornado.Cash’s ETH pools.
A 10% allocation (1,000,000 TORN) is designated for anonymity mining in Tornado.Cash ETH pools, with a linear distribution over a one-year period.
A substantial allocation of 55% (5,500,000 TORN) is reserved for the DAO treasury, with a linear unlocking mechanism spanning 5 years, featuring a 3-month cliff.
30% (3,000,000 TORN) is allocated to the founding developers and early supporters, with a linear unlocking mechanism spanning three years, featuring a one-year cliff.
The Tornado Cash Network’s Robust Security Mechanisms
Tornado Cash operates on the Ethereum network, leveraging the robust security afforded by zero-knowledge proofs. Notably, the Tornado Cash protocol, as well as its anonymity mining protocol, have undergone rigorous audits by esteemed professional audit firms, including Zeropool.
When Will Tornado Cash Trading Commence?
$TORN commenced trading in February 2021, following an airdrop of 5% of its total supply, amounting to 500,000 TORN units.
Will TORN Soar to $100?
TORN debuted at a trading price of $214.29, subsequently surging to an all-time high of $436.16 in February 2021, only to experience a precipitous decline, shedding a staggering 95% of its value.
Acquiring Tornado Cash (TORN): A Comprehensive Guide to Exchanges and Marketplaces
You can acquire Tornado Cash on a plethora of prominent centralized and decentralized exchanges, including but not limited to: Binance, Gate.io, Uniswap, OKX, BingX, CoinW, Sushiswap, and Deepcoin. For a comprehensive list of eligible exchanges, please refer to this link for further information.
Tornado Cash Faces Sanctions Imposed by the United States
On August 8th, 2022, Tornado Cash was formally sanctioned by the U.S. authorities, following a string of allegations that the cryptocurrency mixer had been exploited to launder funds pilfered from American citizens.
Notably, the U.S. Treasury Department alleges that a staggering $7 billion in digital assets has been laundered through Tornado Cash over the past three years. The announcement of these sanctions triggered a precipitous price drop, sparked high-level trolling, and even led to an arrest.
A mysterious Tornado Cash user has been transmitting 0.1 ETH to the public wallets of celebrities and other prominent individuals, potentially entangling their accounts and raising questions about the implications of these sanctions for cryptocurrency users. Meanwhile, in a related development, a 29-year-old software developer affiliated with Tornado Cash has been taken into custody, sparking concerns about the legal fallout.
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