The Horizen blockchain ecosystem presents novel solutions for scaling blockchain infrastructure. Combining a Horizen proof-of-work (PoW) mainchain and a “Zendoo” proof-of-stake (PoS) sidechain solution, Horizen is bringing innovative opportunities for blockchain developers. Moreover, a key aspect in the mechanism is the Horizen coin (ZEN). Also, the native ZEN coin appears in different forms throughout Horizen’s crypto ecosystem. 

In this article, we are going to dive deep into Horizen’s blockchain ecosystem, exploring the various layers of its architecture in detail. Additionally, we’ll cover the use case of the project and the Zendoo sidechain scaling solution. Plus, we’ll look at how the Horizen coin (ZEN) plays a role in securing the network. 

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What is the Horizen Blockchain?

Blockchain expert Rob Viglione is CEO of Horizen Labs, a blockchain development technology company, and co-founder of Horizen, an interoperable blockchain ecosystem. Incorporating the innovative technologies from Horizen Labs, the Horizen blockchain ecosystem operates with a four-layer stack using revolutionary scaling solutions. 

Starting at the top, the first layer of Horizen’s crypto ecosystem accommodates a range of open-source, decentralized applications (dApps). By hosting a variety of enterprise dApps, Horizen technology allows businesses to design their own custom blockchain applications incorporating both public and private features. In turn, this aids in protecting the integrity of user data.

The second layer to the Horizen blockchain stack consists of the revolutionary sidechains, offering an easy-to-navigate development landscape for programmers. Blockchain developers can take advantage of the open-source software development kits (SDKs) available to design and deploy creative and interoperable decentralized applications (dApps) and blockchains. The project’s mission is to bring real-world utility to blockchain dApps with minimal effort using powerful development tools. Branding the scaling solution “Zendoo”, the sidechain operates differently from other sidechains in the industry. Developers can use these sidechains to deploy their applications. We’ll discuss this in further depth later on in this article.

The third layer is where the sidechains connect to Horizen’s public mainchain. Using a proof-of-work (PoW) consensus algorithm, the Horizen public mainchain is a robust, interoperable design and product of Horizen Labs. The native Horizen coin (ZEN) is responsible for ensuring the smooth running of operations on the blockchain. Moreover, the ZEN coin ties in with the fourth and final layer of the stack. ZEN coin holders can support the network foundation by becoming Horizen nodes. With nearly 50,000 active nodes at the time of writing, the project hosts the “largest and most distributed multi-tiered node network”.

Horizen Coin (ZEN)

The Horizen crypto ecosystem could not function without the Horizen coin (ZEN). The ZEN coin holds multiple responsibilities, plus rare utility functions. The native Horizen coin allows token holders to control their digital footprint with two types of addresses. First, “T-addresses” offer a public history of all ZEN coin movements. This is similar to any regular public cryptocurrency. Second, the project offers “Z-addresses”. These are sometimes called  “shielded addresses” since they are private. 

With cutting-edge security incorporating zero-knowledge technology, Horizen offers ZEN coin holders the ability to shield information about transactions. This could include the amount sent, the sender and recipient addresses. Furthermore, shielded addresses offer privacy over account balances as well. However, if a shielded address sends funds to a regular “T-address” or public wallet, the received amount will become public on-chain.

The aim of Horizen’s crypto ecosystem is to become simple to use and accessible for all with real-world utility in mind. As such, the project values the ability of ZEN coin holders to spend their assets on off-chain services and goods with complete transaction privacy. To make ZEN coins more accessible for payments, Horizen partners with many popular digital payment merchant providers.

Similar to Bitcoin (BTC), the Horizen coin (ZEN) has a maximum supply of 21 million coins. According to the project’s website, the ZEN coin has a circulating supply of just over 11.7 million at the time of writing. 

tZEN Coin

An additional form of ZEN coin available in the Horizen crypto ecosystem is the “tZEN” coin. The “tZEN” coins are the project’s testnet coins with zero value. These coins exist for developers to use in testing and experimenting with applications on the platform. Moreover, the ZEN coin and tZEN coin are completely separate. This being said, the tZEN coin operates the same utilities as the ZEN coin on the testnet. However, tZEN coins and ZEN coins cannot be exchanged, and tZEN coins cannot pay for any services in the network.

ZenNodes

Horizen coin (ZEN) holders can opt to make passive income with the Horizen blockchain ecosystem by supporting the network. Becoming a “ZenNode” is completely permissionless with non-discriminative requirements. ZenNode applicants must first go through a vetting process to ensure that they are practically equipped to adhere to the level of commitment the project expects. 

With the largest multi-tier node network in the blockchain industry, ZenNodes are responsible for securing and verifying Horizen’s public mainchain and other sidechains. Furthermore, the global distribution of active ZenNodes dramatically improves the speed, reliability, and scalability of the platform. ZenNodes maintain a real-time copy of the blockchain’s ledger and typically runs using Horizen’s core node software. Additionally, ZenNodes must be contactable via an IP address. Moreover, ZenNodes can be split into two categories: “Secure Nodes” and “Super Nodes”.

At the time of writing, Horizen claims to have 43,838 active Secure Nodes on its network. Responsible for enhancing functions beyond that of regular nodes or “masternodes“, Horizen’s Secure Nodes facilitate the decentralization and point-to-point encryption (P2PE) of the Horizen crypto ecosystem. P2PE is creditable with the “PCI Security Standards Council” and a more direct, compliant framework than end-to-end encryption (E2EE). Secure Nodes must stake a minimum of 42 ZEN coins and ensure their own sufficient computational power can meet processing and memory requirements with at least 92% uptime. 

Horizen’s Super Nodes enhance the speed and reliability of the Horizen Zendoo sidechain. With over 4,200 active nodes, this role requires more computational power and storage, plus a significantly higher stake. Additionally, nodes must have at least 96% reliable uptime. Super Nodes must stake a minimum of 500 ZEN coins. Furthermore, both Super Nodes and Secure Nodes receive 10% of the block rewards proportional to their stake, paid weekly into their public wallet address. 

Zendoo 

As one of the project’s unique selling points, Zendoo is a revolutionary sidechain blockchain scaling solution. A phrase that many call “the blockchain trilemma” entails the difficulties and negotiations of blockchain development between speed, security, and decentralization. Most layer-1 blockchains opt for security and decentralization. In turn, this presents an opportunity for layer-2 solutions to operate on top, or in the case of sidechains, in parallel, of the main blockchain. Zendoo enhances the Horizen crypto ecosystem from a cryptocurrency network to a secure, scalable, interoperable platform catering to enterprise use. 

A unique element to Zendoo is the complete decentralization of the sidechain’s infrastructure. The native ZEN coin fuels the sidechain while Super Nodes underpin the security and reliability of Zendoo. Plus, the Zendoo sidechain model abstains from third-party interaction and offers a modular framework. The modularization of the architecture favors functionality over design, offering near-limitless scalability and flexibility over design choice. Furthermore, using a modular protocol means developers can seamlessly integrate updates to applications with minimal-to-no disruption.

Zendoo’s sidechain leverages zero-knowledge technology for interaction and verification between the sidechain and the Horizen mainchain. Furthermore, this is “without knowing the internal structure of the sidechain”. Developers can use the Zendoo SDK (software development kit) to create privacy-preserving decentralized applications (dApps) that are fully auditable. The Horizen crypto ecosystem offers Zendoo sidechain solutions as the space for businesses to deploy affordable and interoperable dApps.

Cross-Chain Transfer Protocol (CCTP)

The Zendoo sidechain framework and its software development kit (SDK) come with everything a developer could need when designing and deploying a blockchain. Using the proof-of-stake (PoS) consensus mechanism, developers have full flexibility over the network layer, history, and wallet implementations on their chains. All the tools and components developers could need to build a blockchain, Horizen provides in one convenient place. This enables developers to deploy applications quicker by allowing Horizen to carry out all low-level tasks under the hood. 

The Zendoo cross-chain transfer protocol (CCTP) is a custom design for frictionless compatibility with the Horizen blockchain ecosystem. However, the CCTP can be tailored to other blockchains as well. The main core function of Zendoo is to facilitate secure cross-chain transactions with complete decentralization. Moreover, this must be done in such a way without “requiring the mainchain nodes to track a sidechain to verify them”.

Ginger-Lib

As the project’s privacy solution for developers, Horizen’s “Ginger-lib” introduces a brand new multifunctional versatile toolkit and zk-SNARK library. Furthermore, Ginger-lib is Horizen’s pioneering contribution to the global movement of zk-SNARKs. Ginger-lib allows developers to employ select privacy features within their blockchain and applications.

Popular new additions to the library include the “MNT6-753” and “MNT4-753” elliptic curve cycles in addition to all necessary gadgets, fields, and primitives to support “full recursive proof composition”.

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Horizen Developer Environment (HDE)

Another key element of the Horizen blockchain ecosystem is the “Horizen Developer Environment” (HDE). The HDE is an all-in-one space for developers to find tasks, collaborate remotely, and network with other developers. Until now, there has not been a single community platform for networking, development opportunities, and communicating with teams. Furthermore, without using the HDE, developers must use multiple platforms and sites to search repositories and understand and design project structures. Plus, developers often require another application for communications between parties. 

The HDE presents a solution collating and facilitating all services and functions developers need to find, contribute, and earn rewards for collaborations on open-source projects. The HDE aggregates open tasks on GitHub and other tasks from across different repositories into a single platform. Furthermore, developers can use search and filter functions to find tasks they like the idea of contributing to. 

At this stage, the HDE identifies all the relevant information and contributors needed to complete the task. Developers can access a wealth of educational resources alongside networking on the social side of the platform to collaborate with developers from across the globe. Plus, the HDE offers developers the chance to work alongside the Horizen engineering team as well. 

Horizen is keen to work with innovative developers and generously compensates for quality contributions to bounties. There are numerous bounty programs available using GitHub’s native labels to open up a new bounty. Furthermore, the project’s bounty payout policy means that bounties both incentivize and reward contributions to the platform. 

Additionally, the HDE also lists non-technical tasks identified with a special “No Code” label. This offers crypto enthusiasts who are non-programmers the opportunity to participate in the Horizen crypto community and earn rewards. 

Horizen Early Adopter Program (HEAP)

Horizen’s crypto ecosystem also compromises the “Horizen Early Adopter Program”, or “HEAP”. HEAP offers project enthusiasts the opportunity to gain early and exclusive access to the platform’s latest features and products before they go live to the public. 

HEAP allows developers to share their thoughts and help shape the platform’s new releases. Moreover, signing up to HEAP will automatically invite developers to pre-release product demos and HEAP-only webinars.

Exploring the Horizen Crypto Ecosystem and ZEN Coin – Summary

To summarise, the Horizen blockchain ecosystem expands on the developments of Horizen Labs. As a scalable and versatile protocol, the project itself hosts many elements within its multilayer stack and crypto ecosystem. Furthermore, the native ZEN coin is crucial to the project, acting as the fuel for Horizen’s blockchain. 

Horizen offers Zendoo as an innovative scaling solution offering developers the opportunity to design and deploy decentralized applications (dApps). Moreover, developers can pick and choose privacy features for dApps as a way of securing users’ data. This enables developers to create one application combining public and private features. Additionally, the project hosts the “Horizen Developer Environment” (HDE) as a “one-stop-shop” for finding work and collaborating with other developers. 

The project also promotes a “Horizen Early Adopter Program” (HEAP), a new original zk-SNARK library, plus Horizen Academy. Horizen aims to bring mass awareness to blockchain technology through real-world utility use cases. As such, the project presents strong fundamentals capable of facilitating the needs of enterprise-scale applications. For a deeper insight into the benefits for businesses implementing a blockchain, see our Blockchain Business Masterclass course. By the end, you’ll have sufficient knowledge to organize and manage a blockchain project and a team of developers! Also, don’t forget to follow us on Twitter @MoralisAcademy and let us know your thoughts about this article!