Tornado Cash is like the Swiss bank where anyone or mostly the fraudsters or hackers can hide their cryptocurrency which is digital money like Bitcoin, Dogecoin, Ethereum, etc. Tornado Cash keeps our crypto very private. This works as a special tool that helps to make all cryptocurrency transactions more private. This is like a confidential hiding place for your money in the digital world.
Tornado Cash mixes all the illegal crypto with each other like a mixer mixes all the spices in the mixer jar. So when you put your crypto into Tornado Cash, it gets mixed up with other people’s cryptos. And when it gets once mixed then it becomes really very hard to figure out their real owner. And then nobody can trace who did all these transactions of crypto. So, all the illegal cryptocurrencies are very safe in Tornado Cash with unknown IDs.
Tornado Cash works by mixing up your cryptocurrency with the cryptocurrency of other people who are also using the service.
Here's how it works and how people use this service:
Depositing -
You decide to put your cryptocurrency (let's say Ethereum) into Tornado Cash. You send your Ethereum to a special address provided by Tornado Cash.
Mixing -
Your Ethereum gets mixed with the Ethereum from other users who are also using Tornado Cash at that time. This mixing is done in a way that makes it really hard to link any specific Ethereum deposit to a specific person.
Withdrawing -
After the mixing process is done, you can withdraw your Ethereum from Tornado Cash. But the Ethereum you get back might not be exactly the same Ethereum you deposited, but it's of equivalent value. This makes it even harder for anyone to trace the origins of the Ethereum you received.
Because of this mixing process, it becomes very challenging for anyone, even experts or investigators, to track the source of the funds you put in or the funds you take out. This can help protect your financial privacy and keep your transactions more confidential.
However, it's important to note that while Tornado Cash can make your transactions more private, it doesn't make them completely anonymous. If someone is determined enough, they might still be able to figure out some information. Also, some governments have rules about privacy tools like Tornado Cash, so it's important to understand the legal implications in your area.
Remember, just like you wouldn't want strangers looking at your private messages, sometimes you might not want everyone to see your financial transactions either. Tornado Cash is like a digital curtain that you can use to keep your money matters more to yourself.
Also, read - FTX Creditors: Get Ready for Payback with Galaxy Digital!
