What is Horizen (ZEN)?

Deep Dive

1. Privacy-First Value Proposition

Horizen aims to make privacy accessible for mainstream applications. Originally launched in 2017 as a privacy-centric blockchain, it now focuses on modular solutions via its Layer 3 appchain on Base. The platform integrates multiple privacy-enhancing technologies (PETs), including ZKPs, TEEs, and fully homomorphic encryption (FHE), allowing developers to embed privacy into smart contracts without deep cryptographic expertise. This addresses DeFi’s transparency challenges by enabling private transactions and compliance features like selective disclosure for regulatory needs (The Defiant).

2. Technical Infrastructure

Horizen 2.0 operates as a Layer 3 chain on Base, inheriting Ethereum’s security while optimizing for low-cost, high-speed transactions. Key technical upgrades include:
- EVM compatibility for seamless integration with Ethereum-based tools.
- Decentralized proof generation via partnerships with Fermah and zkVerify, reducing ZKP costs.
- Wallet-level privacy through Singularity’s stealth transaction tech, enabling private trades on standard wallets (CoinMarketCap).

3. Tokenomics & Governance

ZEN, the native ERC-20 token, has a fixed supply of 21 million. Its utility spans:
- Governance: DAO voting for protocol upgrades and treasury management.
- Ecosystem funding: 5 million unminted ZEN allocated to developer grants and liquidity incentives.
- Privacy services: Payment for ZKP verification and access to privacy tools.
The DAO oversees a $7.4 million developer fund to accelerate privacy-preserving AI, gaming, and DeFi projects (Horizen).

Conclusion

Horizen is redefining privacy in Web3 by merging Ethereum’s ecosystem with modular, compliance-ready tools. Its pivot to Base positions ZEN as a bridge between institutional demands for transparency and user needs for confidentiality. Can Horizen’s Layer 3 architecture become the standard for privacy in multichain DeFi?