What is Horizen (ZEN)?

Deep Dive

1. Purpose & Value Proposition

Horizen addresses the tension between transparency and confidentiality in blockchain by providing auditable privacy. It allows developers to build apps (DeFi, gaming, identity) where sensitive data remains protected but can be verified if needed. This balance caters to institutions and regulators while preserving user sovereignty.

2. Technology & Architecture

• Layer 3 Appchain: Built on Base (Ethereum L2), Horizen benefits from Ethereum’s security while adding a privacy layer via its Confidential Compute Environment (HCCE).
• Privacy Stack: Integrates ZK proofs, trusted execution environments (TEEs), and decentralized proof generation for scalable, low-cost privacy.
• EVM Compatibility: Developers can deploy privacy-enhanced smart contracts without learning new frameworks.

3. Tokenomics & Governance

• ZEN Token: Migrated to ERC-20 for liquidity and DeFi integration. Fixed supply of 21M, with 5M unminted tokens allocated for ecosystem growth.
• DAO Governance: Decisions like treasury management and protocol upgrades are voted via ZenIPs, ensuring decentralized control.

Conclusion

Horizen redefines privacy as a modular, auditable layer for mainstream blockchain adoption, blending compliance with user empowerment. As it expands tools for developers, can its appchain become the default privacy infrastructure for Ethereum’s ecosystem?