1. What are DONs?

Introduction to Decentralized Oracles (DONs)

Decentralized Oracles (DONs) are vital infrastructure in the cryptocurrency economy, especially in the realm of Decentralized Finance (DeFi). They provide the capability for smart contracts to access data from the external world, enabling applications on the blockchain to interact with real-world information.

Role of DONs

1. Data Delivery Services: DONs can relay real-world data (such as prices, events, etc.) to smart contracts, allowing these contracts to make decisions and execute actions based on external information.
2. Trust-Minimized Off-Chain Computation: DONs not only provide data but can also execute trust-minimized off-chain computations, such as automated trading and monitoring the status of smart contracts.
3. Proof of Reserves (PoR): DONs can verify the existence and status of off-chain assets through Proof of Reserves, ensuring the security and transparency of smart contracts.

Application Scenarios of DONs

1. Decentralized Finance (DeFi): DONs are widely used in DeFi, for instance, in scenarios like stablecoins, yield aggregators, and decentralized exchanges.
2. Synthetic Assets: DONs can aid in creating synthetic assets, such as tokens reflecting the prices of real-world assets, allowing users to speculate and hedge on-chain.
3. On-Chain Auditing and Tracking: DONs can provide necessary on-chain data to verify and track the status of off-chain assets, ensuring the security and transparency of smart contracts.

Advantages of DONs

1. Decentralization: DONs are decentralized, meaning they do not rely on a single centralized entity or technological monopoly.
2. Censorship Resistance: DONs offer censorship-resistant features, ensuring that data delivery and computation are not hindered by external interference.
3. Permissionless Access: DONs allow anyone to access and utilize data without needing permission.

In summary, DONs are essential infrastructure in the cryptocurrency economy, providing the capability to acquire data from the external world and supporting the development of decentralized finance and other application scenarios.

2. Who founded DONs?

Based on the information provided, there does not appear to be a direct mention of the founder of the cryptocurrency "Dons." However, according to the first search result, we learn that the KuCoin cryptocurrency exchange was founded by Michael Gan and Eric Don in September 2017. The "Eric Don" mentioned here may be related to your query, but no specific information indicates that "Dons" is a cryptocurrency. Therefore, it is not possible to determine the founder of "Dons."

3. Which venture capitalists invested in DONs?

According to the provided information, the following venture capitalists have invested in cryptocurrencies or related fields:

1. Northern Light Venture Capital: Invested in RootData, a Web3 data company providing on-chain and off-chain data services.
2. Boyuan Interactive: Purchased $100 million worth of BTC, ETH, and other crypto assets, and invested in RootData.
3. Bonfire Union Ventures (a fund under Mask Network): Participated in the seed round financing of RootData.
4. Sending Labs, Skyland Ventures, GoPlus, Basics Capital, Rebase D.Ventures, UniSat, See DAO: These funds also participated in the seed round financing of RootData.
5. a16z Crypto: Established the largest cryptocurrency fund to date, valued at $4.5 billion, investing in Web3 technologies.

These venture capital firms' investments in the cryptocurrency and Web3 fields demonstrate their confidence and long-term potential in these sectors.

4. How do DONs operate?

The operational principle of cryptocurrency is primarily based on blockchain technology. Here is the basic operation process:

1. Transaction Records: When a user executes a transaction, such as transferring Bitcoin from A to B, this transaction record gets broadcasted across the entire network.

2. Block Packing: These transaction records are then packed into a block. Each block can store approximately 4,000 transaction records, depending on the size of each record.

3. Blockchain: Each block is linked to the previous block, forming a chain, which is known as the blockchain. This structure guarantees the immutability of transaction records.

4. Mining: To add a new block to the blockchain, a mining process is required. Mining refers to the process of verifying transaction records by solving complex mathematical problems. The first node to solve the problem receives rewards, including newly issued cryptocurrency and transaction fees.

5. Consensus Mechanism: The blockchain network employs a consensus mechanism to ensure that all nodes agree on the transaction records. This mechanism can take the form of Proof of Work (PoW), Proof of Stake (PoS), etc.

6. Decentralization: The decentralized nature of blockchain technology means there is no single central server storing data, but rather multiple nodes maintaining it collaboratively. This enhances the security and reliability of the blockchain.

7. Cryptographic Techniques: Blockchain employs cryptographic techniques to safeguard the security and integrity of transaction records. Each block contains a unique hash value, and any modification to the contents of the block would alter its hash value, resulting in rejection by the network.

In conclusion, cryptocurrency ensures its security and reliability through blockchain technology, the mining process, and consensus mechanisms.