Torpedo Cash uses zero-knowledge proofs to enable anonymous Ethereum transactions. Here's a detailed explanation of how the system works and why it provides complete privacy.
The Deposit Process
- Connect your wallet: Start by connecting your Ethereum wallet (MetaMask) to Torpedo Cash.
- Make a deposit: Deposit 0.5 ETH into the Torpedo Cash smart contract.
- Generate cryptographic commitments: During deposit, the application generates two important values:
- A secret number: Used to prove ownership of your deposit
- A nullifier: Used to prevent double-spending
- Save your credentials: Store your secret number and nullifier securely. You'll need these to withdraw your funds.
Zero-Knowledge Proofs
The core technology behind Torpedo Cash is zero-knowledge proofs. This cryptographic method allows one party (the prover) to prove to another party (the verifier) that a statement is true without revealing any information beyond the validity of the statement itself.
In Torpedo Cash, this means you can prove you have the right to withdraw funds from the pool without revealing which deposit is yours.
The Withdrawal Process
- Enter your credentials: Input your secret number and nullifier from your deposit.
- Specify recipient address: Enter any Ethereum address where you want to receive the funds.
- Generate proof: The application generates a zero-knowledge proof that verifies you own a valid deposit without revealing which one.
- Complete withdrawal: The funds (minus a small fee) are sent to your specified address with no traceable connection to your original deposit.
Privacy Guarantees
Torpedo Cash provides two critical privacy features:
- Transaction unlinkability: No one can determine which deposit corresponds to which withdrawal.
- Recipient anonymity: The withdrawal address can be completely different from your deposit address.