What kind of currency is ZEN coin? ZEN coin function, price trend and future prospect

Horizen (ZEN), a privacy-focused cryptocurrency featuring zero-knowledge proofs, provides optional transaction anonymity and fungibility to protect user confidentiality.

Oct 03, 2024 at 10:41 pm

1. What is ZEN Coin?
Horizen (ZEN) is a privacy-focused cryptocurrency that utilizes zero-knowledge proofs to enhance transaction anonymity and fungibility. It was created in 2017 as a fork of the Zcash (ZEC) blockchain.

2. ZEN Coin Functions

• Zero-Knowledge Proofs: ZEN uses zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge) to provide optional privacy for transactions. Users can choose to send private or public (transparent) transactions based on their requirements.
• Fungibility: ZEN transactions ensure that all coins are equally interchangeable, regardless of their transaction history. This property is crucial for maintaining anonymity and preventing the tracking of funds.
• Shielded Transactions: ZEN allows users to create shielded pools where they can combine and shuffle their coins to further enhance privacy. This process makes it challenging for observers to identify the origin or destination of funds.

3. ZEN Coin Price Trend

The price of ZEN coin has experienced significant fluctuations since its launch:

• 2018: ZEN reached a peak of $121.53 in June 2018.
• 2019-2020: The price declined gradually throughout 2019 and stabilized around $30-$50 for a period in 2020.
• 2021: ZEN surged to a new all-time high of $147.31 in April 2021, driven by growing interest in privacy coins.
• 2022: The price experienced a sharp sell-off during the crypto market crash and has since recovered slightly, hovering around $40-$60.

4. Future Prospects of ZEN Coin

The future prospects of ZEN coin depend on several factors:

• Growing Demand for Privacy: Increasing awareness of privacy concerns has driven the demand for privacy-enhancing cryptocurrencies like ZEN.
• Regulatory Compliance: ZEN's anonymous features may face regulatory scrutiny in some jurisdictions, potentially impacting its use and adoption.
• Competition and Innovation: The privacy coin market is competitive, and new solutions are constantly emerging. ZEN needs to remain innovative and address market challenges to maintain its position.

Conclusion

ZEN Coin is a privacy-focused cryptocurrency that offers optional anonymity for transactions. Its use of zero-knowledge proofs and shielded transactions provides users with enhanced privacy and fungibility. The price of ZEN coin has experienced significant volatility, and its future prospects depend on factors such as growing demand for privacy, regulatory compliance, and market competition.