When fully launched, users will be able to perform private transactions on the Arbitrum layer two networks using the renowned Tornado Cash mixer
Tornado Cash is heading to get a scaling push as the privacy protocol sets its implementation on the Ethereum layer two network Arbitrum.
Tornado Cash smart contracts are now active on the Arbitrum Layer 2 scaling network, due to community efforts to ensure the protocol's reliability.
According to the November 29 announcement, utilising Arbitrum would "allow customers to make use of all the benefits a Layer 2 can offer, with cheaper transactions being the most significant comparative advantage."
Tornado Cash is an Ethereum (ETH) decentralised mixer protocol. Tornado Cash conceals the path that tokens like ETH follow from sender to receiver, allowing for fully private transactions without the need for privacy-focused coins.
Layer two Ethereum networks provide quick transactions and lower fees whilst also leveraging Ethereum's security and decentralisation.
The Tornado Cash team thinks that moving to Arbitrum will enable more users to conduct private crypto transactions despite avoiding Ethereum's high gas fees. According to the team, L2 Ethereum transactions will be around 95% lower than L1 Ethereum transactions.
Users must first transfer ETH, ERC-20, and ERC-721 tokens from Ethereum to Arbitrum via the Arbitrum Bridge before they can utilise Tornado Cash on the platform.
Arbitrum is now the most valuable L2 on Ethereum, with $2.68 billion in total value locked, accounting for 39% of the L2 market share. According to L2Beat, this is second only to Boba Network's $1.38 billion in TVL, making Boba and Arbitrum the only two L2's with more than $1 billion in TVL.
Arbitrum's unique address count has steadily increased since September. According to DeFiPulse, Tornado Cash has $847 million in TVL.
Tornado Cash, according to reports, revealed its TORN governance token in December 2020 and airdropped it to users in February 2021.