Tornado Cash improves transaction privacy by breaking the on-chain link between source and destination addresses.
It uses a smart contract that accepts ETH deposits that can be withdrawn by a different address.
To preserve privacy a relayer can be used to withdraw to an address with no ETH balance. Whenever ETH is withdrawn by the new address, there is no way to link the withdrawal to the deposit, ensuring complete privacy.
The Tornado Cash project does not collect any user data.
The UI is hosted in a decentralized way on IPFS and can be accessed using following link https://tornadocash-eth.ipns.dweb.link/.
Users can also run it locally or use the CLI tool.
A user generates a random key (note) and deposits Ether or an ERC20, along with submitting a hash of the note to the Tornado Cash smart contract.
After depositing, users should wait some amount of time before withdrawing to improve their privacy.
A user submits a proof of having the valid key to one of the notes deposited and the contract transfers Ether or the ERC20 to a specified recipient.
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