A way for more anonymous tornado cash with better functionality #4

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opened 2022-10-03 19:47:55 +03:00 by grayman33 · 2 comments

I have a proposal for making tornado cash significantly more anonymous, flexible and have better functionality.
Right now users can deposit their funds in certain denominations like 0.1, 1, 10, 100 ETH. And then they have to withdraw with the same denominations. This is less secure and can be tracked by any blockchain analyst. For example, if there are 5 deposits of 10 ETH and after some time there are 5 withdrawals of 10 ETH, they can be linked to the same guy.

The solution to this is to get rid of specific denominations and have a single large pool(tornado cash address) where users can deposit and withdraw crypto in any amount.
For example, someone deposits 10 ETH. He is given a note(say x) for 10 ETH. Now he withdraws 1.5 ETH out of 10 using the x note, his current note will be nullified and he will be given new note Y for 8.5 ETH. He withdraws 0.2 ETH again using note Y, now it will be nullified and he will be given note Z for 8.3 ETH. So on and so forth. In this way users can deposit and withdraw crypto in any random amount.
When many users will be depositing and withdrawing in random amounts from a single large pool, it will not be possible for any analyst to link any 2 transactions to the same person.

I have a proposal for making tornado cash significantly more anonymous, flexible and have better functionality. Right now users can deposit their funds in certain denominations like 0.1, 1, 10, 100 ETH. And then they have to withdraw with the same denominations. This is less secure and can be tracked by any blockchain analyst. For example, if there are 5 deposits of 10 ETH and after some time there are 5 withdrawals of 10 ETH, they can be linked to the same guy. The solution to this is to get rid of specific denominations and have a single large pool(tornado cash address) where users can deposit and withdraw crypto in any amount. For example, someone deposits 10 ETH. He is given a note(say x) for 10 ETH. Now he withdraws 1.5 ETH out of 10 using the x note, his current note will be nullified and he will be given new note Y for 8.5 ETH. He withdraws 0.2 ETH again using note Y, now it will be nullified and he will be given note Z for 8.3 ETH. So on and so forth. In this way users can deposit and withdraw crypto in any random amount. When many users will be depositing and withdrawing in random amounts from a single large pool, it will not be possible for any analyst to link any 2 transactions to the same person.

Is this problem not solved by Tornado Cash Nova? Nova supports private transfers also.

Is this problem not solved by Tornado Cash Nova? Nova supports private transfers also.

Correct, the design choices of Nova aim to resolve these problems although there is issues with the UXTO model.

This is the wrong place for brainstorming fundamental designs, I think this conversation is more welcome on the forum. Closed.

Correct, the design choices of Nova aim to resolve these problems although there is issues with the UXTO model. This is the wrong place for brainstorming fundamental designs, I think this conversation is more welcome on the forum. Closed.
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Reference: tornadocash/classic-ui#4
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