What is Tornado Cash (TORN) crypto and why is it gaining attention?

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What is Tornado Cash (TORN) crypto and why is it gaining attention?

What is Tornado Cash (TORN) crypto and why is it gaining attention?
Image source: © Arinahabich08 | Megapixl.com

Highlights:

  • Tornado Cash, built on Ethereum, is a decentralized, non-custodial privacy protocol.
  • It returned over 16% gains YTD.
  • The TORN token is available on exchanges like Binance, OKX, etc.

The Tornado Cash (TORN) crypto was drawing attention on Friday after it announced using a tool to block crypto wallets sanctioned by the US Office of Foreign Assets Control (OFAC).

The TORN crypto traded flat on Friday morning while its volume slipped over 41%.

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What is Tornado Cash (TORN) crypto and why it is gaining traction?

Tornado Cash, built on Ethereum, claims to be a decentralized, non-custodial privacy protocol. The company said the protocol enhances transaction privacy by breaking the on-chain link between the addresses of the recipient and destination.

It uses a smart contract that accepts ETH and ERC-20 deposits, which any on-chain address can withdraw. However, when a new address withdraws an asset, the withdrawal cannot be linked to the deposit to secure the assets' privacy.

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The protocol uses zero-knowledge proofs (zk-SNARKs) to achieve privacy. While deciding to make a withdrawal, a user should prove that the individual doesn't possess a secret corresponding to one of the deposits' lists of smart contracts. The zk-SNARK technology then allows the proof to verify without requiring users to reveal which exact deposit corresponds to their secret.

TORN is the native governance token of the Tornado Cash protocol. It is a fixed-supply ERC-20 token that allows holders to vote on the protocol's upgrades and fixes. The token is available on exchanges like Binance, OKX, Bitget, etc.

What is Tornado Cash (TORN) Crypto & Why Is It Gaining Attention?

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On Friday, the company revealed that it uses a tool developed by Chainalysis to block crypto wallets sanctioned by the US Office of Foreign Assets Control (OFAC). The blockade is only applied to the user-facing decentralized applications (DApps) and not to the underlying smart contract, according to one of the Tornado Cash founders.

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Tornado Cash (TORN) crypto price and performanceData Source: CoinMarketCap.com

Bottom line:

The TORN crypto was priced at US$42.91 at 10:33 am ET on April 15, up 0.17%, while its volume in the trailing 24 hours dropped by 41.96% to US$6.42 million. It has a market cap of US$47.19 million, and its fully-diluted market cap is US$429.13 million.

It has a max and total supply of 10 million, and its current circulating supply is over 1.09 million. It gave a return of 16.8% YTD.

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