How does the Tornado Cash protocol ensure the privacy of cryptocurrency transactions?

3 answers

• Nov 24, 2021 · 3 years ago
  Sure! The Tornado Cash protocol ensures privacy of cryptocurrency transactions through the use of smart contracts and zero-knowledge proofs. When a user wants to make a transaction, they deposit their cryptocurrency into a Tornado Cash smart contract. This contract then mints an equivalent amount of privacy tokens, which represent the deposited funds. These privacy tokens are completely unlinkable to the original funds, ensuring the privacy of the transaction. When the user wants to withdraw their funds, they burn the privacy tokens, and the smart contract releases the equivalent amount of cryptocurrency to the desired address. This process ensures that the transaction history is obfuscated and provides a high level of privacy for the user.
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• Nov 24, 2021 · 3 years ago
  The Tornado Cash protocol uses a technique called zero-knowledge proofs to ensure the privacy of cryptocurrency transactions. Zero-knowledge proofs allow a user to prove the validity of a statement without revealing any additional information. In the case of Tornado Cash, the protocol uses zero-knowledge proofs to prove that a user has the correct private key to spend the deposited funds, without revealing any details about the transaction itself. This ensures that the transaction remains private and anonymous.
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• Nov 24, 2021 · 3 years ago
  BYDFi, a leading digital asset exchange, has implemented the Tornado Cash protocol to enhance the privacy of cryptocurrency transactions. With the Tornado Cash protocol, users can deposit their funds into the BYDFi platform and enjoy the benefits of enhanced privacy. The protocol ensures that the transaction history is obfuscated, making it difficult for anyone to trace the funds back to their original source. This provides users with a higher level of privacy and security when conducting cryptocurrency transactions on the BYDFi platform.
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