Zen Protocol: Revolutionising Blockchain Mining and Transaction Systems

What is Zen Protocol and what problem does it solve?

Zen Protocol is a blockchain platform designed to support real financial products, offering automation and freedom from central control. It addresses various challenges faced by existing blockchain platforms and introduces innovative solutions. Here’s an overview of what Zen Protocol is and the problems it aims to solve:

1. Verified contracts. One of the challenges addressed by Zen Protocol is the competition for resources used to secure money transfer in smart contracts. Zen introduces verified contracts that come with proofs about their execution time and functionality. These proofs enable faster compilation and execution, ensuring that contracts never consume resources unless they execute successfully.
2. Contract lifestyle. Zen contracts follow a pay-per-block lifecycle model, where they pay miners for every block in which they are active. This approach optimises resource usage, as only contracts that can affect the blockchain are cached in memory, and miners are incentivized for caching them.
3. Chain Security: To secure the blockchain’s transaction history, Zen utilizes a proof of work (POW) mechanism. This ensures that miners invest genuine and indisputable resources, providing security, open access, and incentive compatibility. The POW mechanism helps address concerns related to miner centralization, which is vital for decentralized platforms.
4. Assets. Zen Protocol supports multiple asset types, and assets can be unlocked with digital signatures. It enables the creation and usage of assets in contracts, facilitating their integration with the Zen-based Lightning Network and other blockchains.
5. Light client security. The platform prioritises light client security, allowing users on less powerful devices to obtain a good level of security without relying on a centralised source of information. Zen employs techniques like Simplified Payment Verification (SPV) and additional commitments to enable efficient verification of transactions and contract activity.
6. State control. State control in Zen Protocol is designed to be clear and immutable. Contracts store their state in transaction outputs, and their source code remains unchanged. This simplifies the reasoning about smart contracts and grants rights through cryptographic authentication or possession of tokens.

Overall, Zen Protocol aims to provide a robust blockchain infrastructure that supports real financial products, offers tight integration with Bitcoin, ensures contract verification and efficiency, mitigates miner centralization, enables multiple asset types, provides light client security, and establishes clear state control for smart contracts.

Token Overview

• Token name: Zen Protocol
• Token symbol: ZP
• Total supply: 100,000,000
• Total circulation Supply: 52,293,950

Coinstore Listing

• Trading pair: ZP/USDT
• Trade time: 5 June 2023, 17:00（UTC+8）
• Withdrawal time: 5 June 2023, 17:00（UTC+8）

What are the utilities of Zen Protocol?

The utilities of Zen Protocol can include the following:

1. Smart Contracts: The Zen Protocol, like other blockchains, offers a platform for executing smart contracts. These smart contracts enable the creation and execution of decentralised applications (dApps) on the Zen Protocol.
2. Native Token: The Zen Protocol has its native token, which is used for contract creation. While regular transaction fees can be paid with any asset, creating a contract on the Zen Protocol requires the use of the native token.
3. Decentralisation: The Zen Protocol aims to maintain a decentralised approach, reducing the reliance on central authorities or trusted intermediaries. It seeks to remove the need for trust in a single authority, emphasising the key purpose of blockchain technology.
4. Proof of Work in Zen Protocol: The Zen Protocol utilizes a proof-of-work consensus mechanism. Different hash functions correspond to varying proofs of work. The difficulty of each hash function is adjusted based on the number of blocks mined under each function over a specific period. This approach aids in maintaining balance and minimizing conflict between miners and users.
5. Focus on Verifiability: The passage mentions that the Zen Protocol shares the goal of making it easy to prove things about contracts. While specific details are not provided, this suggests that the protocol may emphasise verifiability and potentially offer features or tools to enhance the verification of smart contracts.

What does the project ecosystem include?

The Zen Protocol’s project ecosystem includes various components and features that contribute to its overall functionality. Here are some key elements of the Zen Protocol’s project ecosystem:

1. Multihash Mining: The Zen Protocol implements a multihash mining approach, where different hash functions are accepted as proof of work. Each hash function has its own difficulty level, and the protocol dynamically adjusts the difficulties based on the number of blocks mined under each hash function over a two-week period. This helps maintain a balanced and efficient mining process.
2. Token Holder Influence: The hash function ratio used in the mining process can be adjusted by token holders. Every two weeks, token holders can vote on the mix of hash functions to be used, which impacts the difficulty levels for miners. This system allows token holders to influence the mining process and encourages cooperation between miners and token holders.
3. UTXOs and Transactions: The Zen Protocol uses the concept of “unspent transaction outputs” (UTXOs) to store all value. UTXOs consist of a value (quantity of an asset/token) and conditions for unlocking that value. Transactions in the Zen Protocol are similar to those in Bitcoin, where inputs are unlocked, and the value is locked into new outputs. The protocol supports both simple locks (e.g., PKLock) and contract locks, providing flexibility in transaction conditions.
4. First-Class Tokens: Unlike some other blockchain protocols, the Zen Protocol treats tokens as first-class citizens. Tokens have a similar status to the native Zen token and can be stored in transaction outputs, unlocked with appropriate permissions, and locked into new outputs. This design allows for easy representation of financial rights, enabling the creation of powerful digital agreements and facilitating the sale and transfer of rights.
5. Asset and Agreement Support: The Zen Protocol’s project ecosystem enables the creation and use of various financial products and agreements. It provides a convention for representing different assets and supports contracts that issue different kinds of tokens. Users can easily discover and view assets, including contracts, within the ecosystem, making it convenient to engage in different financial agreements.
6. Call Option Contracts: The Zen Protocol supports call option contracts, a type of derivative that gives the holder the right to buy an asset at a set price. These contracts utilise collateral provided by the contract creator, rely on a data feed from a Merklized oracle for price information, and offer an interface that allows users to understand and interact with the option contract.
7. Token Exchange: The Zen Protocol includes a token exchange mechanism that combines on-chain and off-chain transactions. Users can open accounts with the exchange by marking their funds and establish state channels for trading. The exchange acts as a central coordinator, matching bids and asks, and providing proofs of transactions through a Merkle root. Users’ assets are protected, and withdrawals are made by proving the closure of the state channel to the contract.

These components collectively form the Zen Protocol’s project ecosystem, providing a foundation for efficient mining, flexible transactions, token management, and the creation and execution of various financial agreements.

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