Horizen Labs Proposes Removal of Shielded Transactions from Blockchain Network
A major update has been proposed by Horizen Labs to remove shielded transactions from the blockchain network. Horizen, a layer-0 blockchain network, is scheduled to undergo a hard fork on September 26th, removing privacy features.
The latest deprecation has been completed, and the mainnet will remove shielded transactions with the ZEN 4.1.0 update at block #1426200.
Why the Upgrade is Needed
Horizen Labs introduced the proposal ZenIP-42204 in April 2023, stating that shielded transactions make up a small percentage of total transactions. Ben Pittman, a senior software engineer at Horizen Labs, explains that this upgrade is necessary to align with their vision of a simple mainchain that enables a network of sidechains for various use cases.
Delisting and Exclusion
In September 2022, Huobi delisted privacy coins, including Horizen’s native crypto ZEN, to comply with regulations. Additionally, Horizen has already been delisted on an exchange in South Korea and excluded from popular industry applications like Crypto.com.
The Functionality of Shielded Transactions
With shielded transactions, users could hide information about the sender, receiver, and amount. This feature also allowed users to prove their legitimacy without revealing personal data to entities.
Hot Take: Simplifying the Mainchain
Horizen Labs’ proposal to remove shielded transactions aligns with their vision of a simple mainchain that enables sidechains for various use cases. By streamlining the network and focusing on core functionalities, Horizen aims to improve its position in the crypto market and address challenges faced on exchanges. While shielded transactions provided privacy, their limited usage and potential regulatory concerns led to their removal. Horizen’s decision showcases the project’s adaptability and commitment to evolving in a rapidly changing industry.
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