With the launch of the test project Tornado Cash, the Ethereum network has been able to perform private transactions. This means that the user can create a transaction without publishing the transaction amount or the previous transaction record.
In theory, this solution can make Ethereum closer to cash in terms of financial privacy, because no one knows where your money is being used.
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Developers of the Tornado Cash tool said that users can send Ethereum anonymously via smart contracts and privacy cryptography (ie zero-knowledge proof). For a long time, such technology has been at the heart of the privacy coin Zcash.
The tool works by breaking the link between the source and whereabouts of the funds on the chain. In fact, Tornado Cash operates like a rich service, which acts as a middleman, but it is unmanaged, which means users can control all the funds involved in the transaction.
Tornado said, "Whenever ETH is extracted through a new address, there is no way to link the access process, thus ensuring complete privacy."
However, although it brought privacy transactions to the Ethereum network, it was a bit difficult to use, and the whole process was even a bit contradictory.
The problem is the process of fund extraction. To withdraw funds, you must have an additional independent address with an Ethereum. This is a problem, because if you use the existing Ethereum to send money to this address, it is easy to determine that the address belongs to you. This first violates the original intention of using the Tornado Cash service.
To solve this problem, Tornado created a tool called "relayer" to complete the process. This means that you only need to create a new Ethereum address and a zero-knowledge proof, and then the layerer will do the rest. But if that's not enough, Tornado suggests taking more steps to make sure the whole process is anonymous. In short, the process is not easy.
Although Ethereum users are willing to make ETH use as easy as cash, they may not be able to use Tornado for users who are not familiar with the technology. Instead, they will have to wait for the arrival of Ethereum 2.0 – no matter when.