Privacy-Centric Crypto Mixing Protocol Tornado.cash Plans to Deploy on L2 Platform Arbitrum
One of the largest cryptocurrency mixing protocols, Tornado.cash, has announced the project will deploy on the L2 (layer 2) Ethereum platform Arbitrum One. The creators of the Ethereum-based mixing application explain th...
Archive context
Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
One of the largest cryptocurrency mixing protocols, Tornado.cash, has announced the project will deploy on the L2 (layer 2) Ethereum platform Arbitrum One. The creators of the Ethereum-based mixing application explain that settling on Arbitrum will allow Tornado.cash users to benefit from cheaper transactions.
Tornado.cash to Deploy on Arbitrum – ‘Cheaper Transactions Being the Biggest Comparative Advantage’
On November 29, the team behind the ethereum mixing application Tornado.cash revealed the project plans to deploy on the Arbitrum One network. The news follows the project’s recent collaborative efforts that applied network connections to Polygon, Avalanche, Binance Smart Chain, and Xdai. This week, total deposits for Tornado.cash on the Xdai chain crossed $1 million. In terms of ether deposited since the project’s inception, the protocol has taken in 2,222,007 ether, or $4.3 billion.
Essentially, Tornado.cash improves ether transfer privacy by breaking onchain links between the source and destination addresses. The protocol depends on zero-knowledge proofs (ZKP) in order to ensure links to deposits and withdrawals are non-existent. Tornado.cash is just over two years old as it was introduced in August 2019. The project even got the former Bitcoin Core developer, Gavin Andresen, to notice the ether mixing protocol in mid-January 2020.
On May 13, Tornado.cash developers destroyed their private keys using a process called multi-party computation (MPC). The scheme allowed the Tornado.cash developers to give the smart contract to the community without the developer’s private key. “With a record 1114 contributions this was by far the largest Trusted Setup Ceremony to date. By comparison, all other trusted setup ceremonies had less than 200 participants,” the Tornado.cash team explained in the blog post.
Arbitrum is an L2 solution that leverages optimistic rollups and Arbitrum users benefit by using ethereum (ETH), its token derivatives, and smart contracts for a fraction of the cost. Statistics from l2fees.info show that the average ethereum transaction can cost $7.08 while using Arbitrum the same transfer would cost $2.81. While transferring ERC20 tokens could cost $16.19 using L1 (layer 1), L2 fees using Arbitrum to transfer a token will cost $3.09.
Swapping tokens is the most expensive onchain (L1) transaction costing around $35.41 per transaction. However, Arbitrum users swapping tokens only pay around $4.85 per transfer according to today’s l2fees.info metrics. The Tornado.cash blog post says that “the protocol’s smart contracts are all set and ready to spin on Arbitrum.” The biggest advantage to using Tornado.cash with Arbitrum is data transfer costs.
“Settling on Arbitrum will allow Tornado.cash users to take advantage of all the benefits a Layer 2 can offer, with cheaper transactions being the biggest comparative advantage,” the team’s blog post highlights. “This proposal is part of the protocol’s desire to constantly improve itself and allow more users to claim back their right to privacy. Moreover, with this deployment, Tornado.cash will join a thriving ecosystem composed of multiple other defi applications.”
What do you think about the crypto mixing application Tornado.cash deploying on Arbitrum? Let us know what you think about this subject in the comments section below.
Why this matters
This blockchain story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
Read on Bitcoin NewsRelated market context
Two Ethereum bridges lose $31.7M within hours as third protocol halts staking
AFX and the Verus-Ethereum bridge suffered about $31.69 million in combined losses within hours of each other, while B² Network se...
Bitcoin mining giant Poolin files for bankruptcy owing 11,700 users $164 million
Bitcoin mining pool Poolin Technology filed for Chapter 11 with $163.7 million in IOUs owed to wallet users. Its two Texas affilia...
Samsung Wallet is getting native stablecoins – and it could make one token the default for 800M users
Some crypto investors raised an eyebrow this week when Samsung, in its official Galaxy Unpacked recap, said updates to Wallet “wil...
Elliptic Report Shows How Bitcoin ATM Scams Move From Cash To On-Chain Wallets
Elliptic has published a new report explaining how Bitcoin ATM scams work, and the most useful part is not the usual warning that...
Samsung Says Wallet Will Add Stablecoin Support
Samsung Wallet will support stablecoins, Samsung product manager Lee Dinham said at the company's Galaxy Unpacked event in London...
DeFi Aggregator Odos Closes Doors, Leaves Users 5 Days to Move Locked Funds
The team behind decentralized exchange aggregator Odos said on July 23, 2026, that the company operating the platform is winding d...