What is Horizen (ZEN)?

Horizen is a blockchain ecosystem that allows businesses and developers to build their own public or private blockchains and decentralised apps (dapps) on its distributed network. With an emphasis on privacy and scalability through side chains, Horizen employs Zendoo, a verified cross-chain transfer protocol, as a side chain solution. The project also includes a zero-knowledge proof (zk-SNARK) protocol to provide secure communication with the side chains.

The native currency, ZEN, is a privacy-based coin offering two types of addresses — T-Addresses (public) and Z-Addresses (private) — in order to maintain privacy of ZEN transactions. It is rewarded to miners and secure nodes, and can be traded on the open cryptocurrency market.

A brief history of Horizen (ZEN)

Founded by Robert Viglione (co-founder and CEO of Horizen Labs) and Rolf Versluis (co-founder and president of the Zen Blockchain Foundation), Horizen was launched in 2017 under the name ZenCash as a fork of Zclassic, which itself was a fork of Zcash.

The project began with the intention of developing privacy-focused, zero-knowledge-proof technologies with a sustainable funding model to incentivise stakeholders. However, ZenCash was the target of a 51% attack on 3 June 2018, and the attackers managed to create three double-spend transactions of 3,317.4, 6,600, and 13,234.9 ZEN. In response, the team amended the consensus mechanism and introduced a penalty for delayed block reporting. The solution makes it exponentially more difficult and costly for malicious actors trying to perform a 51% attack. Other projects, including Pirl, are also utilising the solution.

Coupled with the 51% attack and confusion with the crypto project Zcash, the team decided it was the right time to rebrand, and in August 2018, Horizen was born. This marked the project's transformation from a cryptocurrency to a privacy platform with a scalability focus. There was no token sale, pre-mine, or ICO.

When Horizen (then ZenCash) was forked from the Zclassic blockchain at block #110000, those who possessed any quantity of Zclassic at the time of block #110000 received the same amount of ZEN; it continued issuing from block #110001 with the introduction of a centralised treasury.

How Horizen (ZEN) works

The Horizen blockchain ecosystem has both a main blockchain and a sidechain platform that enables developers to build custom private or public blockchains and dapps. It combines Proof of Work (POW) — to maintain consensus — with Proof of Stake (POS) so new tokens are rewarded to both PoW miners and PoS validators.

Horizen’s uniquely scalable network, high levels of privacy, and security make it particularly popular amongst developers because it allows the building of incredibly scalable side chains and highly complicated dapps that can function without the issues common with other blockchain platforms.

With its zero-knowledge-based blockchain technology, interoperability, Zendoo, and scalability, Horizen's solutions provide the groundwork for long-term blockchain sustainability. As a PoW blockchain employed on the Equihash algorithm, ZEN can be mined using Equihash mining software. Block rewards are distributed between miners (60%), treasury (20%), and nodes (20%).

What is Horizen (ZEN) used for?

The native Horizen token, ZEN, fuels the project, and its optional privacy feature allows users to control their digital footprint. It offers T-Addresses and Z-Addresses.

T-Addresses are used for making transactions, similar to bitcoin. These transactions are public and transparent on the blockchain. Z-Addresses, or shielded addresses, are completely private and anonymous. They leverage zero-knowledge cryptography to obscure sender and recipient addresses, as well as the amount sent.

Horizen's network allows developers to create their own blockchain by using its unique side chain solution. Like the main chain, the side chains are incredibly versatile and ideal for constructing large projects like dapps. Users can earn ZEN by running incentivised nodes or contributing hashpower to the Horizen network. And Horizen even offers free ZEN every day from Horizen Faucet.