Tornado Cash will get an important boost as the privacy protocol is getting ready to be deployed on the Ethereum layer two network Arbitrum. The smart contracts of Tornado Cash are ready for Arbitrum Layer 2 as a result of contributions from the community to make sure that the protocol is stable.
According to the announcement, this will “allow users to take advantage of all the benefits a Layer 2 can offer, with cheaper transactions being the biggest comparative advantage.”
Tornado Cash is known for being a fully decentralized Ethereum mixer protocol. Tornado Cash hides the path that coins like ETH take to the receiver from the sender, thus making transactions completely private and without having to rely on privacy-focused coins.
Layer two networks on Ethereum are known for recording faster transactions and, very importantly, having lower fees, but, at the same time, they continue to enjoy the security and decentralization of Ethereum.
The team behind Tornado Cash predicts that deploying onto Arbitrum will permit more people to make private crypto transactions while also avoiding the dreaded high gas fees that have come to be associated with Ethereum. According to the predictions of the team, layer 2 transactions would be about 95% cheaper than those on layer 1 Ethereum.
Users have to first send ETH, ERC-20, and ERC-721 tokens from Ethereum to Arbitrum through the Arbitrum Bridge in order to use Tornado Cash on Arbitrum.
Arbitrum is now the biggest layer two on Ethereum with $2.68 billion in TVL, which represents 39% of the layer 2 market share. Boba Network is also worth noting as it has a TVL of $1.38 billion. Boba and Arbitrum represent the only two layer two’s that have more than $1 billion in TVL.
Unique addresses on Arbitrum have been on the rise since September, currently standing at 291,876. Tornado Cash has $847 million in TVL as of now.