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DeFi

Privacy protocol Tornado Cash launches on Arbitrum

30 Nov 2021 : 09:08
2 min read
  • Tornado Cash's smart contracts are ready to launch on Arbitrum
  • Users will be able to process Ethereum transactions faster and cheaper
  • Tornado Cash improves the privacy of transactions

The Ethereum transaction mixing protocol, Tornado Cash, is set to launch on the Layer 2 network Arbitrum.

Users will be able to process transactions faster and cheaper

The November 29 announcement states that deployment on Arbitrum “will allow users to take advantage of all the benefits that a Layer 2 can offer, with cheaper transactions being the biggest comparative advantage”. The team at Tornado Cash believes that the deployment on Arbitrum will allow more users to perform private crypto transactions while avoiding Ethereum’s high gas fees. It expects L2 transactions to be about 95% cheaper than those on L1 Ethereum.

To use Tornado Cash on Arbitrum, users must first send ETH, ERC-20, and ERC-721 tokens from Ethereum to Arbitrum via the Arbitrum Bridge. It said that members of the Tornado Cash community willing to support the deployment on Arbitrum could contribute to the deployment. 

What is Tornado Cash? 

As an Ethereum mixer, Tornado Cash improves the privacy of transactions. It does this by breaking the on-chain link between the sender and recipient addresses. In other words, it allows withdrawals to be made to a different address that cannot be linked to a deposit address, ensuring privacy. This means that it can enable completely private transactions without the need to use privacy-friendly coins. It also uses zkSnark proof technology and is non-custodial, meaning users retain complete control over their deposits into the protocol.

Launching on Arbitrum is a logical step as Layer 2 solutions continue to gain traction. Arbitrum is currently the largest L2 on Ethereum, with $2.68 billion in total value locked, representing 39% of the L2 market share. The top three projects on Arbitrum in TVL are the DeFi protocols Curve, AnySwap, and SushiSwap. The number of unique addresses on Arbitrum has also increased and currently stands at 291,876. With the introduction of Tornado Cash, these users can now remain private.


About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

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