Zen Horizen (ZEN) can be considered both a coin and a token, but it's most accurately described as the native cryptocurrency and utility token of the Horizen blockchain.
* Coin: A cryptocurrency is typically called a coin when it operates on its own blockchain. Horizen has its own blockchain, and ZEN is its primary cryptocurrency, which can be mined (Proof-of-Work) and used for network security. In this sense, it's a coin.
* Token: A token is usually built on an existing blockchain (like Ethereum). ZEN can also be referred to as a token because it provides various utility and governance functions within the Horizen ecosystem. This means it's not just a digital currency but is also used for various purposes on the Horizen platform, such as staking and gas fees. Especially within Horizen's sidechain ecosystem, ZEN functions as a utility token.
In simple terms, ZEN is the native coin of the Horizen blockchain, which also functions as a utility and governance token within the Horizen ecosystem.
ZEN Token Integration with the Base Ecosystem
The Horizen (ZEN) token is set to integrate with the Base ecosystem, a significant step for Horizen. Here are the key details:
* Conversion to ERC-20 Token: The ZEN token will be converted into a standard ERC-20 token on the Base blockchain. This will allow for easier integration with the Base and Ethereum ecosystems, increasing its liquidity and usability.
* Layer 3 (L3) on Base: Horizen will function as a Layer 3 (L3) blockchain built on Base. Its primary objective will be to create privacy-focused applications. Horizen will integrate its Zero-Knowledge Proof (ZKP) technology with Base, opening up opportunities for developing privacy-centric dApps (decentralized applications).
* Benefits:
* Easier Access and Higher Liquidity: As an ERC-20 token, ZEN will be more easily traded on various DeFi (decentralized finance) platforms, boosting its liquidity.
* Lower Gas Fees: Transaction fees on the Base blockchain are significantly lower than on the Ethereum mainnet, which will reduce costs for ZEN users.
* Privacy-Centric dApps: Developers can leverage Horizen's ZK technology to build privacy-protected applications on Base, ensuring data privacy.
* Connection with Coinbase: Since Base is supported by Coinbase, Horizen will benefit from Coinbase's compliance framework and developer ecosystem.
* Estimated Timeline (Based on current information):
* June 2025: The testnet dry run for ZEN migration has already begun.
* July 2025: Full token migration and the launch of ZEN's ERC-20 version on Base are expected.
* Q3 2025: The Horizen L3 mainnet is anticipated to launch, along with the release of early dApps.
This move will help establish ZEN as a robust and privacy-oriented cryptocurrency, connected to the rapidly growing Base and Ethereum ecosystems.