Tornado Cash: The Holy Grail of On-Chain Privacy

Preface

As a result, the privacy characteristics of cryptocurrencies are disintegrating.

Know Your Customer (KYC)
Monero (Cointelegraph)

As a public chain with the most complete DeFi ecosystem, Ethereum has traceable links for asset transfers between addresses. This completely fulfills the privacy characteristics of cryptocurrencies and thus makes any collusion between addresses visible.

Therefore, a project based on Ethereum (or other public chains capable of running smart contracts) with privacy transaction features became an immediate need in the market, and Tornado Cash was born.

Project Overview

How Tornado Cash Works (CoinGecko)

Market Opportunity

Competitive Analysis

Monero vs Zcash (CryptoBriefing)
The Ethereum Virtual Machine (Lynda)

In summary, Tornado Cash has no strong and original competitor for the time being.

Token Economics

Initial Distribution of $TORN (Tornado Cash, Dec 2020)

Since the liquidity mining rewards were approved by the community voting proposal without a front-end setup, the mining portal is hosted on other products (such as vfat), fully reflecting the spirit of community autonomy.

Governance

Tornado.Cash Governance Proposal (Tornado Cash Medium)
Tornado.Cash Contracts are Immutable and Unstoppable (Tornado Cash Medium)

As a result, Tornado Cash may be the only project to achieve fully decentralized governance and development at this time.

Community Proposals

Security

Anonymity (Tech Academy)

Compliance Risk

For Tornado Cash, ensuring compliance and privacy at the same time is the most important issue to consider at the moment.

Conclusion

At that time, Tornado Cash will become an important part of the privacy transaction ecology, which not only provides privacy transaction services directly to users but also becomes the underlying asset of other privacy components.

To the Moon (Tech Academy)

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