Horizen Labs to Deactivate Privacy Features in Upcoming Blockchain Update

Horizen Labs has announced an update to enhance the transparency of its layer 0 blockchain network. Set to take place on September 26 the upcoming hard fork will disable the privacy features of the network as part of the ZEN 4.1.0 update, which will be implemented at block #1426200. This decision was initially outlined in the ZenIP 42204 proposal, which Horizen Labs shared on GitHub in April 2023.

According to Ben Pittman, a software developer at Horizen Labs this change is driven by the fact that anonymous transactions make up only a small portion of overall activity. The privacy feature has also posed challenges for Horizen when it comes to cryptocurrency exchanges.

Pittman emphasized that Horizen aims to create an efficient mainchain that can accommodate different sidechains for various applications. This vision has been developed over years.

In times Huobi, a cryptocurrency exchange removed several tokens focused on privacy, including Horizens own ZEN token in order to comply with regulatory guidelines. Additionally Horizen has faced potential delisting from an exchange and exclusion from popular crypto platforms like Crypto.com due to its privacy features.

Previously Horizens privacy functionalities allowed users to hide details such as sender and recipient information and transaction amounts while still allowing verification, without revealing information.

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