Horizen is a privacy-focused cryptocurrency project designed to create a versatile blockchain platform. It enables daily use as a private currency, private messaging applications, and media tools anytime, anywhere.
Launched on May 30, 2017, Horizen (formerly known as Zencash) originated as a fork of Z Classic. Z Classic, in turn, was a fork of Zcash, which itself branched from Bitcoin.
Core Issues Horizen Addresses
Many privacy coin projects struggle to provide full anonymity or face challenges in expanding their ecosystem around a privacy-focused coin.
Horizen goes beyond offering just ZEN as a privacy coin. It provides tools that allow developers to build sidechains connected to Horizen, thereby broadening the project's ecosystem.
Horizen’s Solutions
Horizen utilizes zero-knowledge proof technology inherited from Zcash. This technology ensures that transaction information remains encrypted and private when broadcast across the network, while also protecting against denial-of-service attacks and spam.
Additionally, Horizen is actively developing products and tools that enable the creation of sidechains linked to its main blockchain.
Further details on these developments will be covered in later sections.
What is ZEN Coin?
ZEN is the native cryptocurrency of the Horizen network. It serves as a medium of exchange for value between participants within the Horizen ecosystem.
ZEN Coin is built and operates on its own proprietary blockchain.
Key Details About ZEN Coin
ZEN Token Allocation
ZEN Token Sale
Horizen did not conduct an Initial Coin Offering (ICO) or any public token sale. The project's funding comes from its Treasury, which receives 20% of all mining rewards.
ZEN Distribution Plan
The current block reward for mining is 12.5 ZEN.
This reward is distributed as follows:
- Miners receive 80%.
- Secure and Super Nodes receive 10%.
- The Treasury receives 10%.
Similar to Bitcoin, Horizen undergoes a halving event approximately every four years, where the block reward is cut in half. The current reward of 12.5 ZEN per block will reduce to 6.25 ZEN after every 840,000 blocks.
What Makes Horizen Stand Out?
From the outset, the Horizen core team declared that the project aimed to be more than just a privacy coin for payments. It strives to be an ecosystem that integrates privacy coins into everyday life.
The team has delivered on this promise by launching practical products like ZEN Chat, ZEN Store, and ZEN Merchant.
A particularly notable feature is Horizen's sidechain concept and its Sidechain SDK toolkit. This allows developers to build sidechains connected to the main Horizen blockchain, leveraging its privacy features.
Developers can use these sidechains for various purposes, such as creating Layer 2 scaling solutions or decentralized applications (DApps).
Use Cases for ZEN in the Horizen Ecosystem
ZEN Coin is designed as the primary payment currency within the Horizen ecosystem.
Currently, ZEN is primarily used for:
- Paying for transaction fees on the network.
- Rewarding miners and node operators.
- As a medium of exchange in supported marketplaces and merchants.
Horizen Transaction Fees
Transferring ZEN on the Horizen blockchain incurs a transaction fee. Additionally, trading ZEN on supported exchanges involves withdrawal, deposit, and trading fees, which vary depending on the exchange's fee structure.
How to Acquire and Own ZEN Coin
There are two main ways to acquire ZEN:
- Mining ZEN through contributing computational power to the network.
- Purchasing ZEN on supported cryptocurrency exchanges.
Exchanges that Support ZEN Coin Trading
ZEN is listed on numerous large and small exchanges with relatively good liquidity.
Some major exchanges that support ZEN include Binance, Bittrex, Huobi, and OKX.
Wallets for Storing ZEN Coin
There are three types of wallets suitable for storing ZEN:
- Official Horizen wallets (desktop and mobile versions).
- Hardware wallets for enhanced security.
- Third-party software wallets that support ZEN.
The Future of Horizen
Before discussing ZEN's future, let's review the primary drivers of its buy and sell pressure:
Buying pressure comes from:
- Users seeking privacy-focused transactions.
- Developers building on the Horizen platform.
- Miners and node operators earning rewards.
Selling pressure comes from:
- Miners and nodes liquidating rewards for operational costs.
- Traders taking short-term profits.
The future of ZEN largely depends on the widespread adoption of Horizen and its coin. As acceptance grows, the value of Horizen and ZEN is likely to increase over the long term, similar to Bitcoin's value proposition.
Should You Invest in Horizen?
Before deciding whether to invest in ZEN, consider these key aspects of the project:
Products:
Completed and usable products include ZEN Node, ZEN Chat, ZEN DAO, and the official wallet.
Roadmap:
Horizen has a public roadmap available on its official website. A significant milestone was the launch of the Sidechain SDK and the DAO governance model.
The Sidechain SDK, launched in Q4 2019, is a toolkit for expanding Layer 2 sidechains that inherit security from the main Horizen chain. The Horizen DAO, an on-chain management model for the treasury, does not have a public release date.
Mainnet:
Horizen's mainnet launched on May 30, 2017.
Partners:
Official partners listed on Horizen's website include IOHK, a key technical development unit for the Cardano project. Horizen collaborates with Cardano on developing Horizen DAO.
Token:
ZEN is the primary currency within the Horizen ecosystem and is used for block rewards for miners and nodes.
Additional Information:
Over 100 merchants across various industries accept ZEN as a payment method. Geographic distribution of these merchants can be found on Horizen's official website.
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Frequently Asked Questions
What is the main purpose of the ZEN coin?
ZEN serves as the native cryptocurrency for the Horizen network, facilitating private transactions, rewarding network participants, and functioning as a medium of exchange within its ecosystem.
How does Horizen ensure transaction privacy?
Horizen utilizes zero-knowledge proof technology, which allows transactions to be verified without revealing sensitive information, ensuring user privacy and security.
Can ZEN be mined?
Yes, ZEN can be mined. The network uses a proof-of-work consensus mechanism, and miners are rewarded with ZEN coins for validating transactions and securing the blockchain.
What makes Horizen different from other privacy coins?
Horizen distinguishes itself by offering a comprehensive ecosystem that includes sidechain development tools, privacy-focused applications, and a broad vision for integrating privacy features into daily use cases.
Where can I securely store my ZEN coins?
ZEN can be stored in official Horizen wallets, compatible hardware wallets, or reputable third-party software wallets that support the cryptocurrency.
Is Horizen a good long-term investment?
The long-term value of Horizen depends on the adoption of its technology, the expansion of its ecosystem, and broader market trends in the cryptocurrency sector. Always conduct thorough research before investing.