Tornado Cash usage refers to the act of transacting through the Tornado Cash protocol, a decentralized mixer designed to enhance transaction privacy on the Ethereum blockchain. Users deposit cryptocurrency into a pool and withdraw it to a new address, making it difficult to trace the origin of the funds. This tool aims to break the on-chain link between sender and receiver.
Context
News surrounding Tornado Cash usage often involves discussions about privacy in digital assets, as well as concerns regarding its potential use for illicit activities like money laundering. Regulatory bodies have imposed sanctions on the protocol, leading to significant debate about censorship resistance and financial surveillance in the crypto space. Understanding this tool’s function and its regulatory context is crucial for comprehending the ongoing tension between privacy and compliance.
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