Arbitrum Launches New Privacy Protocol Tornado Cash
The Arbitrum One network, built on L2 Ethereum, will launch the Tornado Cash decentralized privacy protocol, which masks the path of movement of various tokens, like ETH, from sender to recipient, thereby ensuring complete privacy without additional surcharges.
According to the announcement, the deployment of the Tornado Cash protocol on Arbitrum will allow users to take full advantage of Layer 2 and lower transaction costs.
Arbitrum, like the other second-tier networks on Ethereum, boasts faster transactions and lower fees than the first-tier Ethereum networks. At the same time, all L2 Ethereum networks provide the same level of security and decentralization as L1.
The Tornado Cash team estimates that L2 transactions will be around 95% cheaper than Ethereum L1 transactions.
To use Tornado Cash on Arbitrum, users only need to send ETH, ERC-20 and ERC-721 tokens from Ethereum to Arbitrum via the Arbitrum Bridge.
Arbitrum is currently the largest L2 on Ethereum with a total locked value of $2.68 billion, accounting for 39% of the L2 market share. According to L2Beat, this is second only to Boba Network’s $1.38 billion on TVL, making Boba and Arbitrum the only two L2s with over $1 billion on TVL.
Earlier, the core network of Arbitrum One, together with the Binance exchange, opened Ether (ETH) deposits on Arbitrum One Layer 2.