Co-founders of Tornado.cash, Roman Storm and Roman Semanov, discuss mixers and how they work. They explore incorporating Zero Knowledge for more privacy and the challenges faced in the Tornado.Cash project. They also talk about the future of Tornado Cash and bringing privacy to everyone.
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Quick takeaways
Tornado Cash is a zero knowledge-based mixer that provides greater privacy for cryptocurrency transactions, aiming to replicate the privacy features of Zcash on Ethereum.
Mixers like Tornado Cash, which utilize ZK SNARKs, can enhance on-chain privacy on the Ethereum blockchain, but users should be cautious about other potential privacy leaks.
Deep dives
Overview of Tornado Cash and the Team
Tornado Cash is a zero knowledge-based mixer that aims to provide greater privacy for cryptocurrency transactions. The team behind Tornado Cash includes Roman Storm, responsible for user experience, and Roman Semenov, focused on snark implementation. The project is built on the Ethereum blockchain, making it easily accessible for users who already hold assets on Ethereum. The team emphasizes user-friendly interfaces and aims to replicate the privacy features of Zcash on Ethereum. They also have plans to explore internal transactions and integrate ERC-20 tokens into their mixer.
Understanding Mixers and their Varieties
Mixers are tools designed to obfuscate the transaction paths of cryptocurrencies, enhancing privacy. Tornado Cash specifically focuses on non-custodial mixers, which are technologically more complex to implement. They differ from custodial mixers, which are more similar to traditional mining pools where funds are temporarily held. Different cryptocurrencies employ different mixing techniques, such as CoinJoin for Bitcoin, ring signatures for Monero, and ZK SNARKs for Zcash. Tornado Cash utilizes ZK SNARKs to achieve privacy on the Ethereum blockchain.
Challenges and Limitations of Mixers
While mixers can enhance privacy, there are certain limitations and considerations for users. To maintain privacy, users should follow specific rules, such as not withdrawing immediately after depositing and waiting for a sufficient number of transactions between their deposit and withdrawal. Additionally, network-level concerns, like IP address tracking, can still compromise privacy. Mixers like Tornado Cash primarily address on-chain privacy, and users need to be cautious about other potential privacy leaks, such as cookie reuse and address correlations.
Security Concerns and Disaster Recovery
The Tornado Cash team experienced a vulnerability in a library they depended on, potentially allowing an attacker to drain all funds from the mixer. Fortunately, they discovered and fixed this vulnerability themselves before any exploitation occurred. The team acknowledges the need for security measures and has undergone a security audit. They highlight the importance of continuous assessment, bug fixes, and cautious implementation to ensure the robustness of their solution. They emphasize the industry-wide need to address disaster recovery plans and explore decentralized insurance options.
In this week’s episode, we chat with Roman Storm and Roman Semanov from Tornado.cash all about mixers. We explore what they are used for and how they work, how Zero Knowledge can be incorporated to provide more privacy, what the challenges are and what the future holds for the Tornado.Cash project.