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Privacy-Centric Crypto Mixing Protocol Tornado.cash to Be Deployed on L2 Platform Arbitrum

Privacy-Centric Crypto Mixing Protocol Tornado.cash Plans to Deploy on L2 Platform Arbitrum

Tornado.cash is one of the most popular cryptocurrency mixing protocols. It has announced that the project will be deployed on Arbitrum One’s L2 (layer 2) Ethereum platform. The creators of the Ethereum-based mixture application explained that users will be able to enjoy cheaper transactions by settling on Arbitrum.

Tornado.cash to Deploy on Arbitrum – ‘Cheaper Transactions Being the Biggest Comparative Advantage’

On November 29, the team behind the ethereum mixing application Tornado.cash revealed the project plans to deploy on the Arbitrum One network. This news comes after the team behind Tornado.cash announced that they plan to deploy on the Arbitrum One network. This week, total deposits for Tornado.cash on the Xdai chain crossed $1 million. In terms of ether deposited since the project’s inception, the protocol has taken in 2,222,007 ether, or $4.3 billion.

Tornado.cash increases ether transfer privacy through the breaking of onchain links between source and destination addresses. Zero-knowledge proofs (ZKPs) are required to verify that deposits and withdrawals do not link to each other. Tornado.cash is just over two years old as it was introduced in August 2019. The project even got the former Bitcoin Core developer, Gavin Andresen, to notice the ether mixing protocol in mid-January 2020.

On May 13, Tornado.cash developers destroyed their private keys using a process called multi-party computation (MPC). This scheme enabled Tornado.cash developers without the need for a developer’s private keys to release the smart contract to the community. “With a record 1114 contributions this was by far the largest Trusted Setup Ceremony to date. By comparison, all other trusted setup ceremonies had less than 200 participants,” the Tornado.cash team explained in the blog post.

Arbitrum is an L2 solution that leverages optimistic rollups and Arbitrum users benefit by using ethereum (ETH), its token derivatives, and smart contracts for a fraction of the cost. Statistics from l2fees.info show that the average ethereum transaction can cost $7. 08 while using Arbitrum the same transfer would cost $2.81. While transferring ERC20 tokens could cost $16. 19 using L1 (layer 1), L2 fees using Arbitrum to transfer a token will cost $3.09.

Swapping tokens is the most expensive onchain (L1) transaction costing around $35. 41 per transaction. Arbitrum users can swap tokens for $4. 85 per transfer according to today’s l2fees.info metrics. The Tornado.cash blog post says that “the protocol’s smart contracts are all set and ready to spin on Arbitrum.” The biggest advantage to using Tornado.cash with Arbitrum is data transfer costs.

“Settling with Arbitrum will enable Tornado.cash customers to take advantage all the benefits that a Layer 2 has to offer, with lower transactions being the greatest comparative advantage,” the blog post from the team highlights. This proposal is part the protocol’s ongoing improvement and will allow more users to exercise their privacy rights. Moreover, with this deployment, Tornado.cash will join a thriving ecosystem composed of multiple other defi applications.”

What do you think about the crypto mixing application Tornado.cash deploying on Arbitrum? Ciphertrace Announces Enhanced Monero Tracing Capabilities for Governments

What do you think about the crypto mixing application Tornado.cash deploying on Arbitrum?

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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Ethereum

Railgun Denies North Korea Ties as it Approaches $1B Total Volume

Crypto privacy protocol Railgun has denied accusations that it is being used by North Korea and other United States-sanctioned entities to launder digital assets.

This development comes as the crypto privacy protocol nears $1B total volume.

Railgun Denies Lazarus Group Association

Responding to claims made by crypto reporter Colin Wu through an X post, Railgun denied allegations linking it to the North Korean hacker group Lazarus Group.

“The North Korean hacker group Lazarus Group is also a user of the coin mixer Railgun,” the post stated. “Railgun is seen as the main alternative to Tornado Cash after the sanctions were imposed on it,” the team added.

Wu’s post referenced an FBI statement from January 2023 that accused Railgun of being used to launder over $60 million worth of Ethereum stolen during the 2022 Harmony Bridge heist.

RAILGUN protocol: “Any suggestion that sanctioned individuals, governments, or entities such as North Korea have used RAILGUN have no evidence & are based only on speculation.” From 2023, all RAILGUN transactions go through a Private Proofs of Innocence check which verifies that…

— Wu Blockchain (@WuBlockchain) April 16, 2024

“This is not true, and it’s false reporting,” Railgun stated. The team affirmed that the Lazarus group can’t access the Railgun system due to its ‘Private Proofs of Innocence’ system, which became operational over a year ago. Railgun also dismissed the accusation as a mistaken and false claim.

This development comes amidst a surge in Railgun’s total volume, which is about to break the $1 billion mark. Data from Dune Analytics reveals that Railgun has reached $962.81 million in total volume, with its total value locked on Ethereum surpassing $25 million.

Buterin’s Endorsement of Railgun

The protocol’s rise in popularity has been further propelled by an endorsement from Ethereum co-founder Vitalik Buterin, who recently defended it while praising its privacy features.

“Privacy is normal,” Buterin affirmed. “Railgun uses the privacy pools protocol, which makes it much harder for bad actors to join the pool without compromising users’ privacy.”

Meanwhile, Buterin has transferred 100 ETH (approximately $325,000) to Railgun within the last two days, according to data from Arkham Intelligence. Over the past six months, he has engaged with Railgun several times, regularly interacting with the platform using small amounts of ETH each month.

Railgun, established in January 2021, leverages zero-knowledge cryptography to shield wallet balances, transaction history, and transaction details. This allows customers to use decentralized apps (DApps) while safeguarding their privacy.

The introduction of Private Proofs of Innocence in January 2023 has increased Railgun’s security measures as it now uses cryptographic assurance to verify the legitimacy of funds entering its smart contract.

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Ethereum

EY Launches Ethereum-Based OpsChain Contract Manager for Business Contracts

Ernst & Young (EY) has launched OpsChain Contract Manager (OCM), an Ethereum solution that leverages zero-knowledge proofs technology.

The solution will help private businesses efficiently manage and execute intricate business agreements while ensuring confidentiality, timeliness, and cost-effectiveness.

EY Launches the OpsChain Contract Manager

EY, one of the top “big four” accounting firms alongside Deloitte, KPMG, and PwC, has been exploring the business applications of zero-knowledge proofs (zk proofs) since at least 2018.

OpsChain Contract Manager (OCM) is tailored to facilitate the secure management of business contracts on a public blockchain. By leveraging zero-knowledge proofs, OCM ensures contract integrity and confidentiality while enhancing efficiency and reducing costs.

The platform integrates with existing enterprise systems through a standardized API and supports various contract types, including volume purchase agreements and pricing models linked to market data feeds.

The development of OCM came from EY’s previous client engagements, where it realized that contract term accuracy could be enhanced while significantly reducing cycle times and administrative costs by approximately 90% and 40%, respectively.

Meanwhile, EY chose Ethereum, a public blockchain, over a private network to prevent any party from gaining undue advantage while mitigating the risk of sensitive business information leakage.

Paul Brody, EY Global Blockchain Leader, highlighted that the technology behind OCM, Nightfall, initially emerged on Ethereum and underwent testing on its test network. The upcoming update will transition Nightfall to Ethereum’s mainnet and may incorporate a Layer-3 upgrade to enhance scalability and functionality.

EY’s Venture Into Blockchain

EY’s launch of OpsChain Contract Manager comes amid increasing blockchain adoption by major financial players. BlackRock also recently entered the space with a tokenized fund on Ethereum.

EY’s OCM reflects its commitment to revolutionizing how enterprises handle contracts, focusing on enhancing process efficiency and transparency through blockchain solutions. By integrating blockchain into traditional business practices, EY sets a precedent for the industry’s progression toward embracing this transformative technology in routine operations.

This latest development builds upon EY’s ongoing engagement with the blockchain sector. EY recently made headlines with a “healthcare breakthrough” by leveraging blockchain technology in collaboration with Canadian Blood Services.

In October 2023, EY unveiled the fourth generation of its EY blockchain analytics tool, Reconciler, designed to aid Fidelity in enhancing internal risk management for digital assets.

In September 2021, EY also announced its collaboration with Polygon to integrate Polygon’s solutions with EY’s flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer.

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Ethereum

Ethereum Poised to Retest $3.5K as Bullish Sign Reappear (ETH Price Analysis)

After experiencing a rapid downturn, Ethereum has found itself supported by a substantial zone, comprising the 100-day moving average and a critical price range between the 0.5 and 0.618 Fibonacci levels. Consequently, a bullish rebound is anticipated in the medium term.

By Shayan

The Daily Chart

A thorough examination of the daily chart reveals an extended period of corrective retracements, culminating in the price finding support within a pivotal zone.

This zone encompasses the 100-day moving average at $3050 and the significant price range between the 0.5 ($3190) and 0.618 ($2972) Fibonacci levels.

This range carries significance as it attracts considerable demand, potentially hindering further downward pressure from market sellers. Additionally, a minor bullish divergence between the price and the RSI indicator suggests the potential for a bullish resurgence, targeting a reclaim of the $3.5K threshold. However, despite the bullish indications, an unexpected breach below this critical support zone could trigger a cascade effect toward the 200-day moving average at $2.5K.

eth_price_chart_2004241
Source: TradingView

The 4-Hour Chart

A closer inspection of the 4-hour chart reveals the formation of a descending wedge pattern during a multi-month consolidation correction. Following a significant decline, the price has reached the lower boundary of the wedge and the support region around $3K.

Nonetheless, given the potential buying pressure within this crucial range, the price has entered a consolidation phase characterized by minimal volatility.

This price action highlights a tug-of-war between buyers and sellers. Nevertheless, a noticeable divergence between the price and the RSI indicator on the 4-hour timeframe suggests the strength of buyers, increasing the likelihood of a bullish upswing in the medium term. In such a scenario, the next target for the price would be the critical resistance level at $3.5K. Conversely, should a break below this support occur, a descent toward the $2.7K support becomes increasingly probable.

eth_price_chart_2004241
Source: TradingView

By Shayan

As Ethereum’s price exhibits signs of recovery, it’s crucial to determine whether this resurgence stems from spot buying or leveraged futures activity. A key metric for this analysis is the funding rates, where positive values signify bullish sentiment and negative values indicate fear in the market.

Observing the recent downtrend in Ethereum’s price, it’s notable that the funding rate metric has mirrored this trajectory, steadily declining until reaching near-zero levels. This alignment suggests that the recent price drop has led to the liquidation of a significant number of positions in the perpetual market, resulting in a cooling effect on the futures market. Consequently, the market appears primed for the re-emergence of long positions, with the potential for a fresh upward surge.

eth_funding_rates_chart_2004241
Source: CryptoQuant
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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