The crypto Tornado Cash (TORN) caught the eye on Friday after announcing the use of a tool to block crypto wallets sanctioned by the United States Office of Foreign Assets Control (OFAC).
The TORN crypto traded flat on Friday morning as its volume slid over 41%.
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What is Tornado Cash (TORN) crypto and why is it gaining traction?
Tornado Cash, built on Ethereum, claims to be a decentralized, non-custodial privacy protocol. The company said the protocol improves transaction privacy by breaking the chain link between recipient and destination addresses.
It uses a smart contract that accepts ETH and ERC-20 deposits, which any on-chain address can withdraw. However, when a new address withdraws an asset, the withdrawal cannot be linked to the deposit to ensure the confidentiality of the assets.
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The protocol uses zero-knowledge proofs (zk-SNARKs) to ensure confidentiality. When deciding to make a withdrawal, a user must prove that they do not have a secret that matches any of the deposits’ smart contract lists. The zk-SNARK technology then enables evidence to verify without requiring users to reveal which exact repository matches their secret.
TORN is the native governance token of the Tornado Cash protocol. It is a fixed-supply ERC-20 token that allows holders to vote on protocol upgrades and fixes. The token is available on exchanges like Binance, OKX, Bitget, etc.
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On Friday, the company revealed that it uses a tool developed by Chainalysis to block crypto wallets sanctioned by the US Office of Foreign Assets Control (OFAC). According to one of the founders of Tornado Cash, the blockade only applies to decentralized user-facing applications (DApps) and not the underlying smart contract.
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The data source: CoinMarketCap.com
At the end of the line :
The TORN crypto was priced at US$42.91 at 10:33 a.m. ET on April 15, up 0.17%, while its volume over the past 24 hours fell 41.96% to 6.42 million US$. It has a market cap of US$47.19 million and its fully diluted market cap is US$429.13 million.
It has a maximum and total supply of 10 million, and its current circulating supply is over 1.09 million. It has returned 16.8% since the start of the year.
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