1. What is HNS?

Introduction to HNS Cryptocurrency

Handshake (HNS) is a decentralised domain name protocol that is compatible with DNS (Domain Name System). It focuses on the registration, authentication, trading, and resolution of top-level domains (TLDs). Users can bid for TLDs using HNS on Namebase and earn tokens when registering subdomains under those domains.

Key Features:

1. Decentralised Internet Infrastructure: HNS aims to build the foundational layer for a decentralised internet, ensuring secure naming and user agents communicate with the correct endpoints.
2. Minimised Global Consensus: HNS achieves a complete global protocol through software with minimal domains, ensuring decentralisation of power.
3. True Decentralisation: There is no single official foundation, committee, company, or entity that permanently controls the protocol.
4. Economic Incentives: HNS creates economic incentives through a transparent name auction process, preventing centralisation and corruption.
5. Mineable Rewards: HNS can be obtained through mining and is used to bid for top-level domains, with HNS from auctioning domains being directly burnt.

Investment Background:

HNS has received investments from top VCs such as A16z Crypto, Founders Fund, Polychain Capital, Draper Associates, as well as individual investors like Coinbase co-founder Fred Ehrsam and Bitcoin Jesus Roger Ver. The HNS mainnet is live, and all raised funds of $10.2 million have been donated to the community, along with 70% of the tokens airdropped to 170,000 GitHub developers in the open-source community.

2. Who founded HNS?

The Handshake (HNS) cryptocurrency was co-founded by Joseph Poon (founder of the Lightning Network), Andrew Lee (CEO of Purse), and Christopher Jeffrey (CTO of Purse).

3. Which venture capitals invested in HNS?

According to the provided information, the following top venture capital (VC) firms have invested in the HNS (Handshake) cryptocurrency:

1. A16z Crypto: Andreessen Horowitz's cryptocurrency investment division.
2. Founders Fund: A well-known venture capital firm.
3. Polychain Capital: A venture capital firm focused on cryptocurrency and blockchain investments.
4. Draper Associates: A venture capital firm founded by Tim Draper.
5. Redpoint: A venture capital firm.

Additionally, there are individual investors such as Coinbase co-founder Fred Ehrsam and Bitcoin investor Roger Ver.

4. How does HNS work?

How HNS Cryptocurrency (Handshake) Works:

1. Decentralised Domain System: Handshake is a decentralised domain name system intended to replace traditional DNS (Domain Name System).

2. Bidding and Registration: Users bid for top-level domains (TLDs) using HNS on Namebase and can register subdomains to earn tokens.

3. Economic Incentives: The value of HNS is enhanced through the auction process. Miners receive HNS as a reward for maintaining the network and can sell it on the market.

4. Deflationary Mechanism: Deflation occurs when the amount of HNS burned from domain auctions daily exceeds the daily HNS produced from mining.

5. Blockchain Foundation: Handshake is based on a UTXO blockchain, using proof-of-work (PoW) to ensure network security.

6. Token Distribution: The Handshake project plans to allocate approximately 70% of its token supply to open-source developers, projects, and non-profit organisations.

7. Decentralised and Secure: Handshake aims to create a decentralised system that ensures security and reliability through economic incentives and blockchain technology.

In summary, HNS cryptocurrency operates through mechanisms such as a decentralised domain system, bidding and registration, economic incentives, deflationary mechanisms, blockchain foundation, token distribution, and decentralised security.