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Binance has listed Tornado Cash on its platform. Why is this?
Binance announced today that it will list Tornado Cash (TORN) on their platform. The exchange will open trading for the trading pairs TORN / BTC, TORN / BUSD, TORN / BNB and TORN / USDT at 06:00 (UTC).
Tornado Cash is one of the largest decentralized, non-custody data protection solutions based on Ethereum. It breaks the chain connection between the source and destination addresses in order to improve transaction data protection. The company launched its TORN governance token to provide additional benefits to its holders. TORN owners can vote to change the minutes and come up with suggestions.
Tornado Cash became popular soon after its initial launch and investors can already buy it on OKEx, Gate.io, HitBTC, LBank, etc. Binance is also on the list of these platforms today.
How does Tornado Cash work?
Tornado Cash uses a smart contract as it accepts both ETH and ERC-20 deposits. Users can withdraw these deposits from any on-chain address. According to the Tornado Cash team, every time an asset is withdrawn via the new address, there is no way to link the withdrawal to the deposit. This ensures the privacy of the assets.
The company uses zero-knowledge evidence to achieve privacy. If a customer chooses to withdraw, they must provide evidence that they have a secret that matches one of the smart contract’s pay-in lists.
The zk-SNARK technology makes it possible to verify this evidence without the customer having to reveal which exact deposit corresponds to his secret.
The smart contract then checks the evidence and, if everything is correct, transfers the deposited money to the address given during the payout transaction. The whole thing works in such a way that no external observer can determine which deposit this withdrawal is associated with.
TORN a fixed supply ERC-20 token, and the platform uses it to allow their customers to vote on protocol upgrades and fixes.
The TORN token has a fixed total of 10,000,000. 10% of the offer is allocated to liquidity mining rewards (distributed linearly over a year), 5% to previous protocol users via an airdrop, 30% to founding developers and early supporters (unlocked over three years with a one-year cliff). , and 55% go to the protocol treasury (activated linearly over five years).
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