TLDR
- Horizen transitions to Layer 3 on Base, enhancing scalability and privacy for developers and users.
- Horizen focuses on regulatory-compliant privacy solutions, balancing privacy with legal standards.
- A $1 million developer funding program supports privacy-driven projects across sectors like finance and gaming.
- Horizen introduces Confidential Compute Environment using trusted execution environments (TEEs) for secure computations.
Horizen, a privacy-focused blockchain project launched in 2017, has undergone a significant transformation. The project has officially transitioned from a Layer 1 blockchain to a Layer 3 network. Now operating on Base, a Layer 2 network developed by Coinbase, Horizen aims to enhance its privacy offerings while ensuring regulatory compliance. The relaunch comes as the demand for privacy features in the crypto space grows, and Horizen seeks to remain relevant in a changing market.
Horizen Moves to Layer 3 for Enhanced Scalability
Horizen’s shift from Layer 1 to Layer 3 represents a strategic change for the project. This decision, finalized in February 2025, allows the network to integrate more effectively with the growing Base ecosystem. By operating as a Layer 3, Horizen benefits from the scalability and security of Base, while focusing on privacy features for developers and users.
As a Layer 3 network, Horizen now sits above the Base Layer 2 platform. This structure provides the necessary foundation for scalability while allowing Horizen to offer specialized privacy tools. Rob Viglione, CEO of Horizen Labs, explained that much of the original infrastructure from the project’s proof-of-work blockchain has been replaced with new solutions focused on privacy and middleware.
The transition has enabled Horizen to focus on its core mission: providing privacy solutions that are both secure and efficient. By eliminating the need for building basic blockchain infrastructure, Horizen can better serve its community and improve user experiences.
Emphasis on Regulatory-Compliant Privacy Solutions
A core component of Horizen’s new strategy is its commitment to regulatory-compliant privacy. The project focuses on providing privacy features that allow users to maintain control over their data while meeting regulatory requirements. Unlike fully anonymous privacy coins, Horizen uses selective disclosure, meaning users can choose to reveal specific information when necessary.
This focus on compliance comes as privacy coins face increasing scrutiny from regulators worldwide. In 2023, Horizen removed support for shielded transactions to respond to these regulatory challenges. However, this move has allowed the project to adapt and ensure it can continue to operate within legal frameworks.
Horizen’s approach aims to strike a balance between privacy and compliance. The goal is to meet the growing demand for privacy features while remaining aligned with global regulatory standards.
Developer Support and Ecosystem Expansion
Horizen is focused on supporting its developer community and expanding its ecosystem. As part of this effort, the project has launched a $1 million funding program to support privacy-focused projects. The program aims to encourage innovation in various sectors, including finance, gaming, and social networks.
Additionally, Horizen is introducing new privacy technologies to further enhance its platform. One such initiative is the Confidential Compute Environment, which will use trusted execution environments (TEEs) for secure computations. idOS has partnered with Horizen Labs for the Token Generation Event (TGE) to enhance its privacy framework and build a portable, user-owned identity across blockchains.
Horizen’s long-term goal is to establish itself as a leading platform for privacy solutions. By providing the necessary support and resources for developers, Horizen hopes to attract more projects to its ecosystem and continue driving innovation in the privacy space.
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