Today we continue to look at a project that has been very popular recently. It has increased by 3-4 times recently. It is also a player in the privacy track. In fact, we have talked about many privacy projects before, such as xmr, zec, dash, oasis, beldex, etc. Recently, it seems that the privacy track has started to rise again, and then some friends consulted about this project. So let’s take a look at this project today, because it has also entered the top 200, let’s take a look at the project fundamentals and see what it does.
1. Introduction
Horizen initially built the Horizen Network to enable users to conduct private transactions. Subsequently, a Zendoo-based sidechain network was developed to increase throughput by bundling transactions between the sidechain and the mainchain using zero-knowledge proof certificates.
The project has now been updated to 2.0. Horizen 2.0 is an EVM with precompiled extensions (EVM chain customized for zero-knowledge (ZK) dApps) that supports the most advanced zero-knowledge proofs, enabling fast and low-cost proof verification. This design aims to overcome the limitations of zero-knowledge capabilities in existing networks while improving cost efficiency, performance, and trustlessness.
2. Architecture - Horizen 2.0 Architecture
2.1 Overview
Horizen 2.0 is the first specialized EVM blockchain designed for zero-knowledge proof (ZK) verification, with built-in precompiled contracts integrated directly into the EVM. It is a dedicated platform for zero-knowledge dApps, where a ZK dApp is defined as any decentralized application that generates, consumes, and/or verifies ZK proofs.
Developers of ZK dApps often face the difficulty of writing and auditing verification contracts, which are the core of verifying ZK proofs. To provide a more streamlined and secure solution, Horizen 2.0 provides built-in precompiled contracts to handle proof verification, thereby reducing the development burden and enhancing security.
These precompilations include validators for multiple ZK proof systems, such as Groth16, Fonk, RiscZero, and UltraPlonk. Each precompiled contract encapsulates the necessary cryptographic operations, including elliptic curve operations, hash functions, and pairing-based cryptography.
2.2 Key Components
2.2.1 Node architecture
Horizen 2.0 uses the Substrate framework to divide its node architecture into two main components: the Core Client and the WebAssembly (Wasm) runtime. This design achieves modularity and efficiency, and clearly distinguishes their respective responsibilities:
1. Core Client
- As the basic layer, it is responsible for handling network activities, including node discovery, managing transaction requests, reaching consensus with other nodes, and responding to RPC calls.
2. Horizen Runtime
- Contains all the business logic for performing blockchain state transition functions. It involves creating new modules (called "pallets" in Substrate terminology) and integrating them with built-in modules.
2.2.2 Horizen Runtime
The Horizen Runtime is an advanced and highly configurable WebAssembly (Wasm) runtime built on Substrate's FRAME (Framework for Modular Aggregation of Entities). FRAME allows developers to create modular, reusable, and composable runtime components, called pallets.
At the core of the Horizen runtime are proof verification pallets specifically designed for verifying zero-knowledge proofs. These specialized pallets focus on verifying ZK proofs:
- They expose functionality through an EVM precompiled interface, giving ZK dApp developers access to validation functionality in a synchronous manner.
This architecture ensures runtime flexibility and provides direct and efficient support for ZK application development.
Each precompiled contract is optimized to enable fast and synchronous proof verification in milliseconds (for certain proof types) while focusing on cost efficiency.
2.2.3 Universal Validator
A universal validator is a unique precompiled contract that directly leverages the power of zkVerify’s comprehensive verification framework, providing access to the latest validators that may not yet be implemented in Horizen 2.0’s precompilations. Developers can use the widely available validators on zkVerify by passing the name of a proof type and the corresponding verification key.
This integration is made possible by Horizen 2.0’s close association as a parachain to the zkVerify relay chain. Universal Validators support asynchronous proof verification by using Cross-Consensus Messages (XCM), abstracting away the complexity of the verification process. This design simplifies integration and expands the range of cryptographic protocols supported by ZK dApps. When zkVerify adds new validators, Horizen 2.0 developers can use them immediately.
One of the key features of the universal validator is its asynchronous nature. Unlike other precompiled contracts that perform instant synchronous verification, the universal validator allows the verification process to be independent of other operations. This flexibility enables developers to integrate zkVerify’s comprehensive verification capabilities into ZK dApps that do not require instant verification, resulting in more efficient and scalable applications.
2.3 DPoS consensus mechanism
Delegated Proof of Stake (DPoS) is a consensus mechanism that improves the efficiency and scalability of blockchain networks by introducing a delegation layer in the staking process. In DPoS, token holders vote to elect a small number of representatives (delegators) to be responsible for block production and network operation. DPoS is currently the consensus mechanism of EON and will continue to be used in Horizen 2.0 to ensure consistency and stability. In the new architecture, EON's block producers will be called Collators to reflect their role in the parachain structure.
Horizen 2.0 will adopt a hybrid consensus model inspired by Moonbeam, which has successfully achieved high performance and scalability through DPoS. Therefore, Horizen 2.0 will use the Nimbus framework to select collators, ensuring a complex and fair process. The selected blocks will be produced by zkVerify's relay chain validators using BABE (Blind Assignment for Blockchain Extension) and finalized by GRANDPA (GHOST-based Recursive Ancestor Prefix Protocol).
Collator selection is a complex process that utilizes the following filters and sources of randomness to ensure fairness and efficiency:
1. Staking Filter
- The qualifications of candidate collation candidates are determined based on their staked amount. Only qualified and committed participants can participate in block production and maintain the network, thereby improving the reliability of the network.
2. Fixed Size Subset Filter
- Further streamline the pool of candidate collators to a manageable number per block production period. This ensures that the number of collators elected balances decentralization with efficiency.
3. Entropy Source
- Introduces a secure and unpredictable random element to prevent collusion and ensure fair distribution of validation responsibilities.
Application examples:
Token Economy
The project was first issued in 2017, with a maximum supply of 21,000,000 tokens, and actual circulation of about 15 million. The market value is 880 million US dollars, the peak was 168 US dollars in 2021, the lowest was 5 US dollars in the bear market, and the current price is 42 US dollars. Because of the replacement of the new chain, after the introduction of the parachain, 40% of the tokens were left to coinbase, and of the remaining 60%, 32.5% belonged to the foundation and 27.5% to the DAO Treasury.
In conclusion, the recent surge in this project is due to Grayscale's large-scale purchase of about 300,000 coins, which caused a sudden surge. As for why Grayscale purchased it, I don't know the reason. From a technical perspective, despite the update to 2.0, I personally don't see much of the privacy track. This track feels a bit like a pseudo-demand. It has also risen nearly 8 times from the bottom. If it weren't for Grayscale's purchase, it might still be stagnant. Moreover, it has only rebounded to this position in the middle of the bull market, and the performance is actually very weak.