The launch of Tornado Cash will be a big step in the right direction as Ethereum strives for scalability and Ethereum 2.0. Which will help to conduct private crypto transactions while avoiding Ethereum’s high gas fees.
Ethereum’s Tornado Cash Launch to allow Cheaper Transactions
According to an announcement on November 29, Tornado Cash stated that deploying on Arbitrum would allow users to take full advantage of Layer 2, with cheaper transactions being the greatest comparative advantage.
Tornado Cash is a fully decentralized Ethereum (ETH) mixer protocol. Tornado Cash hides the path of ETH and other tokens from the sender to the recipient and offers completely private transactions without data protection-conscious coins.
The second-layer network on Ethereum offers faster transactions and cheaper fees, while still benefiting from the security and decentralization of Ethereum.
Since the data protection protocol can be provided on the second layer of the Ethereum network Arbitrum, Tornado Cash is on the verge of scalability.
Tornado Cash’s smart contract can roll into the Arbitrum Layer 2 expansion network after the community helps ensure the stability of the protocol.
The Tornado Cash team believes that deploying Arbitrum will allow more users to conduct private crypto transactions while avoiding Ethereum’s high gas fees. According to the team, L2 transactions are expected to be around 95% cheaper than transactions on L1 Ethereum.
To use Tornado Cash on Arbitrum, users must first send ETH, ERC-20 and ERC-721 tokens from Ethereum to Arbitrum via the Arbitrum Bridge.
Arbitrum the Largest Layer 2 Solution on Ethereum
Arbitrum is currently the largest L2 on Ethereum with a total value of $2.68 billion, which is 39% of the L2 market share. According to data from L2Beat, it is Boba Network’s second-largest TVL at $1.38 billion, making Boba and Arbitrum the only two L2s with more than $1 billion TVL.
The number of unique addresses on Arbitrum has grown steadily since September and is 291,876 at the time of this writing. According to data from DeFiPulse, Tornado Cash has $847 million in TVL.
According to a previous report, Tornado Cash announced its TORN governance token in December 2020 and sent it to users in February 2021.