Tornado.cash is one of the most popular cryptocurrency-mixing protocols. It has now announced that the project will be deployed on Arbitrum One, the L2 (layer 2) Ethereum platform. According to the creators of this Ethereum-based mix application, settling on Arbitrum will enable Tornado.cash customers to enjoy cheaper transactions.
Tornado.cash to Deploy on Arbitrum – ‘Cheaper Transactions Being the Biggest Comparative Advantage’
The project was revealed by Tornado.cash, the team responsible for the ethereum-mixing application Tornado.cash on November 29 plans to deployThe Arbitrum One network. The news follows the project’s recent collaborative efforts that applied network connections to Polygon, Avalanche, Binance Smart Chain, and Xdai. Total Tornado.cash deposits on the Xdai chain this week crossed $1 million. In terms of ether deposited since the project’s inception, the protocol has taken in 2,222,007 ether, or $4.3 billion.
Tornado.cash, in essence, improves privacy when ether transfers are made by breaking the onchain link between destination and source addresses. To ensure that deposits and withdrawals do not link, the protocol relies on zero-knowledge-proofs (ZKP). As of August 2019, Tornado.cash was just two years old. Gavin Andresen was a former Bitcoin Core developer and noticed the ether-mixing protocol around mid-January 2020.
Tornado.cash developers wiped their private keys with multi-party computing (MPC), on May 13. The scheme allowed the Tornado.cash developers to give the smart contract to the community without the developer’s private key. “With a record 1114 contributions this was by far the largest Trusted Setup Ceremony to date. By comparison, all other trusted setup ceremonies had less than 200 participants,” the Tornado.cash team explained in the blog post.
Arbitrum leverages optimistic rollups. Arbitrum users can benefit from using Ethereum (ETH), token derivatives, smart contracts and a fraction the cost. According to l2fees.info, an average transaction in ethereum can be as low as $7.08 and the equivalent transfer using Arbitrum would only cost $2.81. ERC20 token transfers can be done using L1 (layer 1) for $16.19. However, using Arbitrum to transfer tokens will cost $3.09.
Swapping tokens costs $35.41 per transaction, making it the most expensive transaction (L1) onchain. However, Arbitrum users swapping tokens only pay around $4.85 per transfer according to today’s l2fees.info metrics. The Tornado.cash blog post says that “the protocol’s smart contracts are all set and ready to spin on Arbitrum.” The biggest advantage to using Tornado.cash with Arbitrum is data transfer costs.
“Settling on Arbitrum will allow Tornado.cash users to take advantage of all the benefits a Layer 2 can offer, with cheaper transactions being the biggest comparative advantage,” the team’s blog post highlights. “This proposal is part of the protocol’s desire to constantly improve itself and allow more users to claim back their right to privacy. Moreover, with this deployment, Tornado.cash will join a thriving ecosystem composed of multiple other defi applications.”
How do you feel about Tornado.cash, a crypto-mixing application that deploys on Arbitrum. Please comment below to let us know your thoughts on this topic.
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