Source : coinspeaker.com
Tornado Cash will integrate with Arbitrum to offer Ethereum Layer 2 benefits such as cheaper and faster transactions, as well as scaling opportunity.
Tornado Cash is ready to launch on the Ethereum Layer 2 network Arbitrum, according to reports. This development will inevitably add some scaling boost to the popular Ethereum transaction mixing protocol.
Tornado Cash had issued a statement to the effect on Monday, part of which read:
“The protocol’s smart contracts are all set and ready to spin on Arbitrum. They just need help from the community to get deployed & fly with their own wings.”
Now it seems like the much-needed contributions and support from the community is making it possible for Tornado Cash to integrate with Arbitrum. Furthermore, according to the statement issued, Tornado Cash launching on Arbitrum opens up a host of Layer 2 advantages to users. Paramount among these is being able to run cheaper and faster transactions. This is chiefly because Arbitrum utilizes optimistic rollups for its scaling technology. These rollups facilitate the execution of Ethereum transactions off-chain, while storing transaction data on-chain. Consequently, this leads to a reduction in network congestion and transaction fees, as well as an increase in speed. Furthermore, the benefits afforded by Ethereum, including security and decentralization, are still available.
According to Tornado Cash, a transaction on Arbitrum costs ~2.5 Gwei compared to ~130 Gwei on Ethereum. Gwei is a small unit of ETH, which can also be expressed as 1,000,000,000 wei – the smallest ETH base unit. To use Tornado Cash on Arbitrum, users must first send ETH, ERC-20, or ERC-721 tokens from Ethereum to Arbitrum through the Arbitrum bridge.
Arbitrum Already A Layer 2 Force Prior to Recent Integration
Ethereum Layer 2 solutions are gaining in popularity at a steady rate. For instance, Arbitrum has experienced a sharp increase in its total value locked (TVL) amount since launching its mainnet back in August. It is currently more than $2 billion, and represents about 39% of the total Layer 2 market share. In addition, three of its biggest contributors come from AnySwap, SushiSwap, and DeFi (decentralized finance) protocols. Furthermore, according to The Block’s Data Dashboard, the TVL of Arbitrum is higher than that of rival platform Optimism.
The number of unique addresses on Arbitrum is currently 291,876 – indicative of a remarkable growth trajectory since September.
About Tornado Cash
Tornado Cash functions as a fully decentralized Ethereum mixing protocol providing totally classified transactions. It does this by covering the path taken by tokens such as ETH between sender and receiver, and also without requiring specialized privacy-centric tokens. According to DeFiPulse, Tornado Cash has about $847 million in TVL, and also unveiled its TORN governance token back in December 2020 – airdropping them to early protocol users in February of the following year. The popular Ethereum privacy protocol recently deployed on some other networks including Avalanche, Binance Smart Chain, Polygon, and xDAI Chain.
Ethereum still remains the most widely-used blockchain, and its native token Ether (ETH) is currently changing hands at $4,402.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.