Nowadays blockchain is integrating into our daily life. Although the process is so slow, it’s realized. Besides, blockchain allows permissionless and privacy. Some tools provide it using a blockchain network. Tornado Cash is also one of these tools.
Tornado Cash is a tumbler on the Ethereum blockchain and it’s a tool for providing privacy. The tool is working EVM compatible. So, users can transfer the platform between other dApps built on Ethereum. But it also can work with BSC, Polygon, Optimism, Gnosis Chain, etc.
Tornado Cash is also open-source, but last year GitHub removed its repository because of the Lazarus Group hacking event. The platform “helped” North Korean hackers. That’s why the platform faced some problems like USA’s cases, the Circle’s freezing, etc.
Even it’s developer Alexsey Pertsev was arrested in Amsterdam. Because nobody stops the platform. They can just do it. In there, we are seeing Blockchain technology and it’s power.
How To Work Tornado Cash?
Tornado Cash is the mixer. If we talk about it using an easy way, we can imagine the platform’s system like that: There are big pools. The pools consist of different digital assets. For example, BTC, ETH, BNB, and XRP pools.
Users want to provide their digital assets. And the user has 1 BTC, in this scenario he/she must bring own assets to the BTC pool. After that BTC pool is mixing all of the assets. What happened? The user’s address is 0x1a (for example), and the 1 BTC belongs to the address. But already it isn’t. The 1 BTC belongs to 0x1B.
In this case, you can provide your privacy and nobody can track you. Because already wasn’t 1 BTC in the 0x1a address. The problem is that: You can’t convert it to fiat money. Because you need CEX (centralized exchange). If you directly send your assets from Tornado Cash to Binance, the exchange will notice that.
Overall, Tornado Cash’s work is just mixing. That’s why Tornado Cash also “helps” malicious actions. Because nobody controls the platform and nobody can block the hacker and its assets.
Because blockchain is a decentralized and permissionless system.
Is Tornado Cash Using Legal?
No, using it isn’t legal. It doesn’t apply just to Tornado Cash. If any platform works like that, regulators will block and announce them as illegal platforms. But they can’t stop Tornado Cash because nobody can manage blockchain and its data.
But about 2 months ago USA government could stopped and blocked one mixer named ChipMixer. And the mixer used for cryptocurrencies. But it was defunct 2 months ago. The mixer mostly was used by DarkWeb and its users. Today there aren’t any websites and backend servers belonging to ChipMixer.
Yes, it’s true, we can’t use it’s website. But the platform’s backend is still alive. Because its backend is blockchain.
Why Is It Unstoppable?
We already answered the question. There’s solve reason, Tornado Cash has blockchain as the backend. There’s a second factor. It’s the Ethereum blockchain because the network is the most decentralized blockchain. Because the Ethereum network has almost 500.000 nodes. I mean the network’s data is everywhere, is in all the sides of the world. If the U.S. government wants to block Tornado Cash, first of all, it must find the nodes and remove the data.
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