What is Horizen (ZEN)?

By CMC AI
03 December 2025 09:46PM (UTC+0)

TLDR

Horizen (ZEN) is a privacy-first blockchain platform that evolved from a zero-knowledge (ZK) privacy coin into a modular Layer 3 appchain on Base (Ethereum’s Layer 2), offering scalable, compliance-friendly privacy solutions for decentralized apps.

  1. Privacy-First Infrastructure – Combines ZK proofs, TEEs, and encryption to enable confidential transactions.

  2. EVM-Compatible Appchain – Runs on Base for Ethereum-level security and interoperability while reducing costs.

  3. DAO-Led Governance – Community-driven via Zen Improvement Proposals (ZenIPs) and a capped 21M ZEN supply.


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?

CMC AI can make mistakes. Not financial advice.