Tornado Cash (TORN) is a decentralized, non-custodial cryptocurrency mixer that operates on Ethereum Virtual Machine-compatible networks. It uses zero-knowledge proofs to obscure the trail of cryptocurrency transactions, providing privacy for users. The protocol is governed by a decentralized autonomous organization (DAO) and employs a voting system using the $TORN token for protocol updates. Despite its legitimate privacy goals, Tornado Cash has been accused of facilitating money laundering and has faced significant legal challenges, including sanctions from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and criminal charges against its developers.
Tornado Cash (TORN) is a decentralized, non-custodial privacy solution built on Ethereum. It allows users to transact privately by breaking the on-chain link between source and destination addresses. Here's how it works:
Depositing Funds: Users deposit Ether (ETH) or ERC-20 tokens into Tornado Cash smart contracts. The protocol generates a random key and deposits the tokens, ensuring that the user's identity remains private.
Withdrawal Process: To withdraw funds, users must submit proof of having the valid key. They can use a crypto wallet like MetaMask or the Relayer service, which avoids recording the transaction publicly on the blockchain. This ensures that the withdrawal address remains anonymous.
Anonymity Points and Governance: Users who interact with Tornado Cash accrue Anonymity Points, which can be converted into TORN tokens. These tokens are used for governance, allowing holders to vote on proposals and changes within the protocol.
Governance and Token Distribution: There are 10 million TORN tokens, with 55% reserved for the DAO governance treasury, 30% for founding developers and early supporters, and 10% for anonymity mining. The remaining 5% was airdropped to early adopters.
Use Cases: Tornado Cash is used for various purposes, including:
- Privacy Protection: Users can obscure their transactions on-chain, making it difficult to trace the source and destination of funds.
- Laundering Stolen Funds: Unfortunately, hackers and malicious actors also use Tornado Cash to legitimize their source of funds by removing connections to hacked wallets or malicious crypto activity.
Overall, Tornado Cash provides a level of anonymity on Ethereum, but its use can be both legitimate and illicit.
To store Tornado Cash (TORN) tokens, you can use a variety of digital wallets that support Ethereum-based tokens. Here are some steps to follow:
Choose a Wallet: Select a reputable digital wallet that supports Ethereum (ERC20) tokens. Popular options include MetaMask, Trust Wallet, Ledger Live, and Exodus.
Create or Access Your Wallet: If you already have a wallet, log in. If not, create a new wallet by following the wallet provider's instructions. Make sure to securely store your wallet's private keys and recovery phrases.
Add TORN Token: Add the Tornado Cash (TORN) token to your wallet. You can do this by searching for TORN in the wallet's token list or by manually adding the token's contract address.
Receive TORN Tokens: Once you have added the token, you can receive TORN tokens by sending them to your wallet address. You can purchase TORN tokens from a cryptocurrency exchange or receive them as part of a transaction.
Secure Your Wallet: Ensure your wallet is secure by enabling two-factor authentication, using strong passwords, and keeping your wallet software up to date.
By following these steps, you can safely store your Tornado Cash (TORN) tokens in a digital wallet.
To buy Tornado Cash (TORN) tokens, you can follow these steps:
Buying Tornado Cash (TORN) via a Crypto Wallet- Choose a Wallet: Select a reliable and reputable crypto wallet that supports Tornado Cash (TORN).
- Download the App: Download the wallet application to your device from the Google Play Store, App Store, or as a browser extension.
- Create a Wallet: Create a new wallet address or import an existing one. Make sure you write down the seed phrase and keep it in a secure place.
- Buy Tornado Cash (TORN): Purchase the cryptocurrency using a supported payment method. Check the fees, as they may be higher than what exchanges charge.
- Swap for Tornado Cash (TORN): If your wallet doesn’t support direct fiat-to-TORN purchases, you can first buy a more popular cryptocurrency like USDT and then exchange it for Tornado Cash (TORN) through your crypto wallet or on a decentralized exchange.
- Choose a CEX: Select a reliable and trustworthy crypto exchange that supports Tornado Cash (TORN) purchases. Consider the ease of use, fee structure, and supported payment methods when choosing a crypto exchange.
- Create an Account: Enter the required information and set a secure password. Enable 2FA using Google Authenticator and other security settings to add an extra layer of security to your account.
- Verify Your Identity: Complete KYC verification, which may vary based on your nationality and region.
- Add a Payment Method: Follow the instructions provided by the exchange to add a credit/debit card, bank account, or other supported payment method.
- Buy Tornado Cash (TORN): You are now ready to buy Tornado Cash (TORN) using fiat currency if supported. You could also do a crypto-to-crypto exchange by first purchasing a popular cryptocurrency such as USDT and then exchanging it for Tornado Cash (TORN).
- Choose a DEX: Select a decentralized exchange that supports Tornado Cash (TORN). Open the DEX app and connect your wallet. Make sure your wallet is compatible with the network.
- Buy Base Currency: Buy the base currency from a secure centralized exchange such as KuCoin.
- Send the Base Currency to Your Wallet: Transfer the base currency to your web3 wallet.
- Swap Your Base Currency for Tornado Cash (TORN): You are now ready to swap your base currencies for Tornado Cash (TORN).
- Choose the Fiat Currency: Select the fiat currency you want to buy TORN for.
- Enter the Amount: Enter the amount you would like to swap.
- Select Tornado Cash: Select Tornado Cash in the “You get” section to see the estimated amount of TORN you will receive.
- Enter the Recipient’s Address: Enter the recipient’s Tornado Cash address.
- Create the Exchange: Complete the exchange by sending the indicated amount of fiat currency to the provided address.
Remember to always check fees and ensure you understand the associated risks before making any investment decisions.