Key Takeaways:
- Tornado Cash is ready to combine with Arbitrum, Ethereum’s Layer 2 network.
- Tornado Cash users will execute Ethereum transactions faster and cheaper once the system is up and running.
A famous Ethereum transaction mixing technology, Tornado Cash is now compatible with Arbitrum, a Layer 2 network.
“On Arbitrum, the protocol’s smart contracts are completely configured and ready to go. They only require community assistance to be deployed and fly on their own,” Tornado Cash wrote about it in a blog post on Monday.
Tornado Cash improves transaction privacy by acting as an Ethereum mixer. It accomplishes this by severing the on-chain connection between the sender and the receiver address. Put another way, it allows withdrawals to a different address unrelated to a deposit address, assuring anonymity. In addition, tornado Cash is non-custodial and leverages zkSnark proof technology, so users retain complete control over their contributions to the protocol.
The debut of Tornado Cash on Arbitrum means that its users will process Ethereum transactions more quickly and for less money. Arbitrum’s scaling method is based on optimistic rollups. Rollups allow Ethereum transactions to be executed off-chain and only transaction data to be stored on-chain. This decreases network congestion, speeds up the network, and lowers transaction prices.
According to tracker CoinTool, a transaction on Arbitrum costs 2.5 Gwei compared to 130 Gwei on Ethereum. A gwei is a tiny ether unit (ETH). A gwei, or gigawei, is the smallest base unit of ether and equals 1,000,000,000 wei.
Layer 2 solutions for Ethereum look to be gaining traction.
The total amount of value locked (TVL) in Arbitrum has expanded dramatically since its mainnet launch on August 31. According to tracker DefiLlama, the three greatest contributors to its current TVL of nearly $2 billion are DeFi protocols Curve, AnySwap, and SushiSwap.
According to The Block’s Data Dashboard, Arbitrum’s TVL is higher than that of competitor Optimism.
According to the announcement, members of the Tornado Cash community who are willing to help with the deployment on Arbitrum can do so. For example, Binance Smart Chain, Polygon, xDAI Chain, and Avalanche have all recently implemented the Ethereum mixing protocol.
