Horizen (ZEN) offers tools developers can use to build blockchains with massive throughout or enormous capacity.
For example, Horizen claims its users can build blockchains that can process 1,000 transactions per second (TPS). Blockchains will need such capacity to serve a mass market. For example, a gaming platform will need to serve 500 to 1,000 members at once.
However, most blockchains, such as Ethereum (ETH) and Bitcoin (BTC) can only process a few transactions a second. For example, Ethereum was processing 12.27 TPS on 13 February 2023, ETHTPS.info estimates. That means an Ethereum app could only serve 12 customers at a time.
Ethereum’s capacity is small because of all the encryption and security measures it contains. This is the blockchain scalability problem you have heard of. Horizen offers a blockchain scalability problem solution through its enormous network of nodes.
Horizen’s Enormous Network
Horizen’s developers claim they can build an enormous network with their technology. For example, they claim 10,000 blockchains can run in parallel on Horizen’s network.
Additionally, Horizen (ZEN) claims to offer a total network throughput of 10 million transactions per second. To explain, throughput is the measure of the number of actions an app completes in a time frame. For example, the number of payments a decentralized app (DApp) can process.
They claim Horizen offers blockchain’s largest node network with 39,825 active nodes on 13 February 2023. There are three types of nodes on Horizen, which creates a multi-tiered node system.
The Horizen Node System
Secure Nodes employ specific enhancements and function. Users stake Secure Nodes with 42 ZEN in a transparent address. In return, they earn a block reward of 10%. There were 35,699 Secure Nodes on 16 February 2023.
Super Nodes connect the Horizen ecosystem to a sidechain platform. A sidechain is a less secure chain that connects blockhains to blockchains, apps, and to the wider Cloud or Internet. Super Nodes allow the payment and tracking of Secure Nodes.
You need over eight gigabytes of RAM to operate a Super Node. It costs 500 ZEN to stake a Super Node. Super Node Stakers receive 10% of the block reward. They require users to keep Super Nodes up and running at least 96% of the time. Super Nodes contain over 100 gigabytes of storage. There were 4,126 active Super Nodes on 16 February 2023.
Regular Nodes are not staked. Instead, Regular Nodes are usually wallets running Horizen’s Core software. Each Regular Full Node must contain an up-to-date copy of the Horizen blockchain. Anybody can set up a Horizen Zennode or Regular Node and earn 10% of the block reward.
They build Horizen Nodes with ZKSNARKS, or zk-SNARK. The acronym zk-SNARK stands for “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge.” A zk-SNARK is a proof construction, or secret key, that proves possession of information without revealing information.
Theoretically, a zk-SNARK allows you to verify a person’s identity without learning the person’s name or address. Hence, users can remain private. zk-SNARKs allow Horizen node operators and users to remain secret.
Zendoo is Horizen’s cross-chain protocol. Developers use Zendoo to build blockchains and apps.
Zendoo is a zero-knowledge enabled cross chain protocol. That means users can connect to it without revealing their identities. It features all-in-one modular software development kits (SDKs) that help developers deploy Horizen blockchains.
The Horizen ecosystem contains a Node Network, Zen Mining Pools, Exchanges, Wallets, Point-of-Sale or POS (cash register) payment solutions, decentralized applications (DApps) and merchants.
The Horizen Ecoystem and DApps
Many DApps, run on the Horizen ecosystem. Those DApps include TokenMint, a no-code tokenization platform that allows anybody to build a token. zkAudit is a decentralized audit blockchain that can verify proof-of-reserves with zk-Snarks. Hence, they claim zkAudit can verify proof-of-reserves without revealing somebody’s identity.
The DASH (DASH) cryptocurrency is building a Horizen blockchain. DASH is a cryptocurrency built for ordinary people to use with point-of-sale solutions and mobile devices.
The Morpheus Network is building a Horizen blockchain that allows organizations to record each step in the supply process on a public blockchain.They are adding IOTA Oracles to the Horizen blockchain. Oracles provide blockchain constructions with outside information, such as market and price data.
Dragonchain will add its Factor identity solution to Horizen’s network. The LTO Network is a dedicated private blockchain for client transactions.
DIA Oracle will add its Oracles and data feeds to Horizen and Zendoo. DIA will power a native Zen token price feed. The DOT Arcade is building games and nonfungible tokens (NFTs) on Horizen. GameStation connections gamers to Horizen.
Horizen is planning major upgrades to Zen 3.2.1 on 22 February 2023 and Zen 4.0 in April 2023.
What Value Does Horizen (ZEN) Offer?
Mr. Market thinks Horizen (ZEN) offers some value. For example, CoinMarketCap gave ZEN a $14.48 Coin Price and gave it a 165th ranking on 16 February 2023.
CoinMarketCap also gave Horizen a $193.677 million Market Capitalization, a $303.966 million Fully Diluted Market Cap, a $52.098 million Centralized Exchange (CEX) Volume and a 24-Hour market Volume of $51.844 million on 16 February 2023. They base those numbers on a Circulating Supply of 13.375 million ZEN, a Maximum Supply of 21 million ZEN, and a Total Supply of 13.375 million ZEN.
In contrast, CoinGecko gave Horizen a 200th ranking and a $14.47 Coin Price on 16 February 2023. CoinGecko gave Horizen a $169.466 million Market Cap, a $54.565 million 24-Hour Trading Volume, and a $192.634 million Fully Diluted Valuation on 16 February 2023. They base those numbers on a 13.375 million ZEN Circulating Supply, and a 21 million ZEN Maximum Supply.
I think Horizen could offer some true value because it could solve the blockchain scalability problem. Hence, speculators seeking a networking protocol need to investigate Horizen.