What is Horizen (ZEN)?

Deep Dive

1. Privacy-First Architecture

Horizen uses a suite of privacy-enhancing technologies (PETs), including zero-knowledge proofs (ZKPs), trusted execution environments (TEEs), and fully homomorphic encryption (FHE). These tools allow developers to embed privacy into smart contracts and dApps without requiring deep cryptography expertise. For example, ZKPs verify transactions without revealing sensitive data, while TEEs secure computations in isolated hardware environments.

2. Layer 3 Appchain on Base

Horizen 2.0 is built as a Layer 3 appchain on Base (Coinbase’s Ethereum Layer 2), inheriting Ethereum’s security while optimizing for scalability and low fees. This setup allows Horizen to act as a privacy layer for any application on Base, supporting use cases like private DeFi, identity management, and compliant confidential transactions.

3. Tokenomics and Governance

ZEN, now an ERC-20 token, serves three core functions:
- Governance: DAO voting via ZENIPs.
- Ecosystem Fuel: Pays for privacy services and powers zkApps.
- Sustainability Fund: 5 million unminted ZEN tokens are allocated for grants to developers and community initiatives.

Conclusion

Horizen is a privacy-centric infrastructure layer that balances regulatory compliance with user confidentiality, leveraging Ethereum’s ecosystem for scalability and adoption. Its shift to Base and ERC-20 standards positions ZEN as a bridge between privacy innovation and mainstream DeFi.

How will Horizen’s modular design influence the adoption of privacy as a default feature in Web3 applications?