What is the breakdown of Ethereum in the Tornado Cash DeFi ecosystem?

3 answers

• Dec 27, 2021 · 3 years ago
  Ethereum plays a crucial role in the Tornado Cash DeFi ecosystem. It serves as the underlying blockchain platform upon which Tornado Cash operates. Ethereum enables the secure and decentralized nature of Tornado Cash, allowing users to trustlessly deposit and withdraw their funds without the need for intermediaries. Additionally, Ethereum's smart contract functionality enables the creation and execution of the Tornado Cash protocol, ensuring the privacy and anonymity of users' transactions.
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• Dec 27, 2021 · 3 years ago
  In the Tornado Cash DeFi ecosystem, Ethereum is used as the native currency for all transactions and operations. Users need to hold Ethereum in order to interact with the Tornado Cash protocol. When users deposit funds into Tornado Cash, they are required to send Ethereum as a transaction fee to the Ethereum network. This fee is used to incentivize miners to include the transaction in a block and secure the network. Similarly, when users withdraw their funds from Tornado Cash, they need to pay a small amount of Ethereum as a gas fee to cover the computational resources required to process the transaction.
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• Dec 27, 2021 · 3 years ago
  BYDFi, a leading digital asset exchange, also recognizes the importance of Ethereum in the Tornado Cash DeFi ecosystem. As a third-party exchange, BYDFi supports the trading of Ethereum and provides a platform for users to easily acquire and manage their Ethereum holdings. With BYDFi, users can conveniently convert their Ethereum into other cryptocurrencies or fiat currencies, further expanding the utility and accessibility of Ethereum within the Tornado Cash DeFi ecosystem.
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