# Tornado Cash-Good or Bad？

**Published by:** [memebeat](https://paragraph.com/@memebeat/)
**Published on:** 2022-07-16
**URL:** https://paragraph.com/@memebeat/tornado-cash-good-or-bad

## Content

Tornado Cash is currently the most widely used anonymity tool on Ethereum and other EVM chains. The principle of the tool is very simple. Everyone deposits the cryptocurrency of the same denomination (such as 0.1ETH, 1ETH, 10ETH) into Tornado and obtains a deposit certificate. As long as the deposit certificate is provided, the cryptocurrency of the denomination can be withdrawn, because it cannot be determined. The withdrawn funds come from which of the deposited funds, so the withdrawn funds cannot be traced back to a certain extent and can be anonymous. However, Tornado Cash's mixed currency also has obvious drawbacks, which is the liquidity problem. This liquidity does not refer to whether the deposit and withdrawal can be made, but whether the source of the deposit is complex enough and whether there are enough people depositing funds. If If the number of deposits is too small, it is difficult to guarantee the reliability of anonymity. At present, I personally think that Tornado Cash on ETH and BSC is used by a large number of people, and relatively good anonymity can be achieved. There is also a lot of controversy about Tornado Cash, some people feel that it protects privacy, but others feel that Tornado Cash is used by hackers and criminals to launder money. My views are mainly the followingDue to the decentralized nature of the blockchain, anyone can deploy Dapps, which means that even without Tornado Cash, there will be other anonymity tools. Moreover, the blockchain itself has certain anonymous properties.The significance of privacy on the blockchain is not small. Many people think that the reason why Luna will be shorted is that the on-chain address of the organization behind it is public, so it is easy for short sellers to calculate how much and how much to make UST de-peg, and make UST de-peg in a very short period of time. Many went bankrupt. Not only that, because the blockchain address can be viewed freely by everyone, and the transparency is extremely high, all your on-chain behaviors are easy to monitor. Even if no crime is involved at all, most people still do not want their actions to be known to others. If others know the on-chain address that belongs to you, every on-chain behavior of yours will be like running naked on the street.In any case, the existence of Tornado Cash is inevitable. It can be said that it is the infrastructure of Ethereum. As for whether it is good or bad, it can only depend on who uses it.

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