/biz/ - Business & Finance

>>55778298
Good question, and this is definitely one of the questions the team gets asked often in the main telegram.
I'll paste some of the devs responses and discussions from the tg below.

>In one word: Synthetics. The underlying zero knowledge is the same. Basically with tornado, once you generate the commitment you conclude the purpose of the platform. With xft once you redeem the commitment you enable the actual purpose, which is to have synthetic erc20s completely interoperable with defi but private

>XFT offers synthetic assets such as zkBTC, zkETH, zkGold, zkTesla, etc.

>Tornadocash is a mixer dapp. It does not privately store erc20's. Mixers can be subject to probabilistic tracking

>Tornado Cash: Utilizes what’s known as anonymity sets. Users deposit ETH or a compatible stablecoin in a given increment (eg for ETH: 1/10, 1, 10, 100) into a deposit pool. The user receives a secret note, like a receipt, to be used to redeem the ETH/token from the pool. Since there are multiple deposits in a given pool, and since the secret note uses zero knowledge proofs, it obfuscates whose deposit goes where.

>Offshift: An ERC-20 token, XFT, on the ETH network, and a contract for shifting into private derivative assets. The shifting takes a user-chosen amount of XFT, the desired output derivative (eg, BTC), and a Chainlink oracle determines the exchange rate. The XFT is then sent to the burn address and the user is sent a corresponding amount of their chosen zero knowledge (zk) asset. Once a user holds their zk asset, they can send it like any other ERC-20 token, and the transactions are hidden from view on the blockchain while still being verifiable.

>A) tornado cash is a mixer and requires specific deposit amounts and full withdraws. Larger deposits have lower anonymity sets. B) Offshift's zkassets have true untraceable privacy and you can transfer them to as many wallets as you want and cash out as much or as little as you want at a time