Horizen

Horizen (ZEN) was initially launched as ZenCash in May 2017 by Rob Viglione and Rolf Versluis. It was created as a fork of ZClassic, which itself was a fork of Zcash. The primary objective of ZenCash was to provide a privacy-focused crypto trading space for users and autonomy for developers. The innovative node system of ZenCash quickly attracted crypto enthusiasts.

However, ZenCash faced a significant challenge when it was hit by a 51% attack, which allowed hackers to control the majority of the network's computing power. This attack resulted in the loss of between $550,000 and $700,000 in ZEN crypto. In response, the founders initiated a fork, improving the consensus protocol and partnering with a digital company to protect against future 51% attacks. This led to the birth of Horizen (ZEN) in July 2018, a name change aimed at better aligning with the network's ambitions and transitioning to a more ambitious operation of offering an environment of interoperable blockchains and facilitating the creation of decentralized applications (dApps).

Horizen (ZEN) is a zero-knowledge-based blockchain project that offers a highly scalable network, strong privacy and security features, and interoperability between different blockchain ecosystems. Here's how it works:

Horizen uses a combination of Proof of Work (PoW) and Proof of Stake (PoS) consensus mechanisms. The PoW mechanism, based on the Equihash algorithm, ensures the security and decentralization of the network. The PoS mechanism, with a delayed block penalty algorithm, helps maintain the stability and speed of the network.

Horizen has a robust node infrastructure with over 40,000 nodes distributed globally. These nodes are categorized into three types: full nodes for transaction validation, secure nodes for protection against Sybil attacks and network communication, and super nodes for PoS and dApp deployment.

The Zendoo protocol enables the creation of sidechains, which are customizable and can be designed for specific applications. These sidechains can have their own consensus mechanisms, privacy settings, and operating principles. The main blockchain ensures the reliability of these sidechains, providing a high level of interoperability and scalability.

Horizen utilizes zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) technology for anonymization and privacy. This technology allows for the validation of transactions without revealing the details, ensuring a high level of confidentiality.

The native cryptocurrency, ZEN, is used for staking and as a gas fee in the ecosystem. It can be mined using the Equihash algorithm and is traded on several major exchanges.

Horizen offers various tools and applications, such as ZenChat and Sphere by Horizen, which enable secure messaging and transactions. The Horizen Academy provides educational resources, and the Horizen Developer Environment supports developers in building and contributing to the project.

Overall, Horizen's architecture is designed to provide a decentralized platform for the development of scalable and secure applications, with a strong focus on privacy and interoperability.

Horizen (ZEN) has several strengths that make it a notable player in the blockchain industry:

1. Scalability and Interoperability: Horizen offers a highly scalable network that allows developers to build their own blockchains through its unique sidechain solution. This enables the creation of complex projects such as decentralized applications (dApps) without the difficulties typically experienced with other blockchain platforms. Additionally, Horizen's solutions may be the foundation for lasting interoperability in the blockchain world, allowing different ecosystems to connect seamlessly.

2. Optional Privacy Features: Horizen offers a zero-knowledge-enabled cross-chain protocol that ensures great privacy for its main chain and sidechains. This feature is optional, giving users the choice to apply it or not, which is a significant advantage compared to traditional privacy coins.

3. Native Gas Token: ZEN is not only the native cryptocurrency but also the native gas token powering the ecosystem, enabling connections between different chains. It is connected to many crypto-payment providers, allowing users to purchase goods and services with ZEN.

4. Multi-Tiered Nodal Architecture: Horizen's architecture is designed to provide high security and flexibility. It allows developers to create their own blockchains, transact daily, develop and deploy decentralized applications, and more.

5. Enterprise Focus: Horizen's suite of tools appeals not only to individuals but also to enterprise users. This could be a key factor in ZEN adoption, as enterprise users tend to remain loyal to a technology once adopted and often have the ability to pay well for long periods of time.

6. Decentralized Applications: Horizen's ecosystem includes various privacy-focused projects such as a decentralized autonomous organization, a private messenger (ZenChat), an anonymous publishing platform (ZenPub), and a TOR-like domain fronting service (ZenHide).

These strengths position Horizen as a robust and versatile blockchain project with significant potential for growth and adoption.

Horizen (ZEN) faces several risks. One significant risk identified in 2020 was the potential for a consensus fork and double-spend attack due to an unpatched Zcash CVE-2020-8806 vulnerability. This risk was mitigated by fixing the issue with the release of ZEN 2.0.21.

In terms of investment risk, Horizen is considered a moderate risk investment. Portfolio managers who prioritize risk assessment will find this relevant. The risk gauge score is based on factors such as the amount of money required to shift the price over a 24-hour period, recent volume and market cap changes, and the potential for price manipulation.

Additionally, Horizen faces sustainability risks, including climate risks such as physical risk, carbon risk, and transition risk, which are monitored by Grayscale Horizen Trust.

The Horizen ecosystem, which relies on zero-knowledge proofs for inter-chain communication and its native token ZEN, also has its own set of strengths, weaknesses, and risks. These are detailed in a comprehensive report by CryptoEQ.

• Rob Viglione: Co-founder and CEO of Horizen Labs, co-founder and President of the Zen Blockchain Foundation. He holds a Ph.D. in Finance, an MBA in Finance and Marketing, and a Bachelor's in Physics & Applied Mathematics. He has been an advisor to several blockchain projects, including Aave.
• Rolf Versluis: Co-founder and Executive Advisor of Horizen. He has a background in the semiconductor industry and served as a Navy Officer in the US Submarine Force. He also founded North Georgia Crypto Mining, a cryptocurrency mining service provider.
• Jane Lippencott: Former member of the founding team and a former associate in Winklevoss Capital. She is currently a 2021 VC Cohort at All Rise, an advisor for Teller Finance, and a mentor for CeloCamp, the Open Web Collective, and Gitcoin.
• Rowan Stone: Business Development Director for Horizen. He has 15+ years of experience in strategic business development, sales, procurement, and commercial management, spanning the oil and gas, IT, and blockchain industries. He previously founded a mid-sized cryptocurrency mining operation in Scotland.