Tornado.cash is a peer-to-peer anonymity service built on the Ethereum platform. It enables users to break on-chain links, offering high-level financial anonymity.
Unlike centralized mixers, Tornado mixer uses smart contracts that function autonomously, ensuring that users retain complete custody of their funds at all times. This decentralized design brings transparency and removes any central point of failure or censorship.
The core of Tornado Cash lies in privacy-preserving proofs, which let users prove without disclosing specific deposit information. This ensures transaction obfuscation between the deposit and the withdrawal.
Thanks to its robust security, Tornado.cash quickly gained popularity by those seeking financial discretion. It’s used for shielding donor identities, among other legitimate needs.
However, this tool has also been scrutinized from regulators. In 2022, the U.S. Treasury’s OFAC sanctioned the use of Tornado.cash, citing its misuse for illegal transfers. Still, the protocol remains active since its smart contracts are immutable and cannot be taken offline.
Defenders believe that Tornado Cash is a neutral tool, much like the internet itself — and that tools should not be blamed, even if some actors misuse them.
Use cases for Tornado.cash include:
Separating personal and public wallets
Sending donations safely
Using Ethereum without exposing history
As governments tornado cash around the world push for more financial transparency, the demand for tools like Tornado Cash continues to rise. The future of digital asset privacy hinges on whether permissionless systems will be protected or suppressed.
Whether you're a developer or just someone looking to secure your wallet, Tornado Cash remains a powerful tool in the world of ETH-based anonymity.