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How does Tornado Cash work?
In August 2022, the US Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash, adding 45 Ethereum addresses to the Specially Designated Nationals (SDN) List of sanctioned persons. This document aims to help the reader understand what Tornado Cash is, how it works, and what, exactly, was sanctioned. But before we jump into Tornado Cash, let’s review a few key concepts around Ethereum, smart contracts, and decentralization. Background: What is Ethereum, who are its users, what is a smart contract? Ethereum is a cooperatively-run, global, transparent database. Through mutual effort, participants ... (full story)