> For the complete documentation index, see [llms.txt](https://messier.gitbook.io/catalogue-de-messier/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://messier.gitbook.io/catalogue-de-messier/messier-applications/horizon/how-horizon-works.md).

# How Horizon Works

## How Horizon Works

Horizon is a privacy-preserving settlement layer that allows users to move funds without publicly linking where those funds came from and where they go — while still enforcing protocol-level compliance rules.

It is built for **responsible financial privacy** on public blockchains.

***

### The Problem Horizon Solves

On most blockchains, transactions are fully transparent:

* Wallet addresses are publicly visible
* Transaction histories are permanently linked
* Anyone can analyze and profile user activity

This makes it difficult for normal users to maintain basic financial privacy.

***

### Horizon’s Core Idea (In Simple Terms)

Horizon separates transactions into **two independent steps**:

1. **Depositing funds into a shared privacy pool**
2. **Withdrawing funds later to a different address**

The blockchain can verify that:

* A valid deposit occurred
* A valid withdrawal is allowed

…but it **cannot link the deposit to the withdrawal**.

***

### Anonymous Transactions (zk-SNARKs)

Horizon uses **zero-knowledge proofs (zk-SNARKs)** to make deposits and withdrawals cryptographically unlinkable.

This means:

* The system can prove a transaction is valid
* Without revealing the sender
* Without revealing the receiver
* Without revealing the original deposit

Only the **pool denomination** is visible on-chain.

No transaction history is exposed or reused during withdrawal.

***

### Fixed Privacy Pools

Horizon uses **fixed-denomination privacy pools** instead of variable amounts.

This design provides:

* Predefined denominations
* Larger and more uniform anonymity sets
* Resistance to blockchain analysis
* Protection against transaction fingerprinting

Because all deposits in a pool look the same, individual users are harder to distinguish.

***

### Note Wallet (No Accounts)

Horizon does not use accounts, emails, or usernames.

Instead, access is managed through a **Note Wallet**:

* Secured by a password
* Backed by an encrypted note
* Fully controlled by the user

> If the encrypted note is lost, access cannot be recovered.

Horizon never stores private keys or recovery data.

***

### Deposits with Compliance Screening

When funds are deposited:

1. The user sends a fixed amount to the pool
2. The deposit address is screened by third-party compliance providers
3. Clean deposits are accepted
4. Flagged deposits are **blocked and automatically refunded**

Horizon does not custody or retain rejected funds.

***

### Withdrawals Through Proofs

When withdrawing:

* The user generates a zero-knowledge proof
* Horizon verifies the proof
* Funds are released from the pool to the chosen address

The blockchain confirms the withdrawal is valid — **without knowing which deposit it came from**.

***

### Multi-Chain Support

Horizon operates across multiple blockchains.

Supported networks expand over time based on:

* User demand
* Network reliability
* Infrastructure readiness

All networks follow the same privacy and compliance model.

***

### Low, Transparent Fees

Horizon charges a **0.3% deposit fee**.

* No withdrawal fees beyond network gas
* Fees flow directly to the **Messier VirgoDAO treasury**
* No hidden or variable charges

***

### Pool Explorer & Transparency

Horizon includes a public **Pool Explorer** that shows:

* Pool activity
* Transaction hashes
* Network-level data

Wallet identities and deposit–withdrawal links are never exposed.

***

### Transaction Statements (Privacy-Preserving)

Users can generate **private transaction statements** that include:

* Deposits
* Withdrawals
* Selected date ranges

Statements can be exported as PDFs for:

* Accounting
* Tax reporting
* Personal records

These reports do **not compromise privacy** or expose wallet linkage.

***

### Telegram Bot Integration

Horizon can also be accessed via a **Telegram bot**, allowing users to:

* Interact with privacy pools
* Perform deposits and withdrawals
* Use Horizon without complex interfaces

The same privacy and compliance rules apply.

***

### What Horizon Does *Not* Do

To set clear expectations, Horizon:

* Does not collect personal information
* Does not bypass regulations
* Does not guarantee anonymity from law enforcement
* Does not allow unrestricted or unscreened deposits

It is designed for **lawful, responsible privacy**.

***

### In One Sentence

Horizon lets users use public blockchains **without turning their entire financial history into a public profile**, while still enforcing protocol-level compliance.