1. What is zai?

The following is an introduction to cryptocurrency, focusing on its fundamental characteristics and technological principles, without involving price information:

1. Basic Composition: Cryptocurrency is composed of three main elements: a set of rules (protocol), a ledger that stores transaction history, and a decentralised network of participants. These elements enable cryptocurrencies to create reliable payment technologies without a central trusted intermediary.

2. Decentralisation: Cryptocurrency transactions can, in principle, occur in a decentralised environment without the need for a central counterparty to execute transactions. Through distributed ledger technology, transaction histories are recorded in a shared ledger, with each user storing the latest copy of this ledger.

3. Security: Cryptocurrencies achieve security, decentralisation, and transparency by utilising blockchain technology. Blockchain is an immutable distributed digital ledger that makes transaction information nearly impossible to alter through consensus and cryptography.

4. How Blockchain Works: Blockchain stores data in blocks, which are linked in a chain. Each block has a specific storage capacity, and when a block is filled, it is linked to the previous block and a timestamp is generated. The blockchain verifies transactions through consensus mechanisms such as Proof of Work and Proof of Stake.

5. Types of Cryptocurrency: Cryptocurrencies can be categorised into four main types: coins, tokens, non-fungible tokens (NFTs), and stablecoins. Coins are native assets of their own blockchain, primarily aimed at protecting the underlying blockchain network. Tokens are created on existing blockchain networks for interactions with various platforms and applications within the blockchain ecosystem.

In summary, cryptocurrencies provide a new means of payment and value storage through their characteristics of decentralisation, security, and transparency.

2. Who created zai?

The history of cryptocurrency can be traced back to the 1980s and 1990s when scientists and cryptographers began exploring the creation of fully encrypted and secure digital currencies. Here are a few key individuals and events:

1. David Chaum: In 1989, David Chaum founded DigiCash, one of the early digital currency projects, which, despite not achieving great success, laid the groundwork for future developments in digital currency.

2. Wei Dai: In 1998, computer engineer Wei Dai published a description of "b-money," proposing the concept of an anonymous distributed electronic currency system.

3. Nick Szabo: Also in 1998, Nick Szabo created BitGold, an electronic currency system where users must perform proof of work and publish cryptographic solutions.

4. Satoshi Nakamoto: In 2008, an individual or group of individuals under the pseudonym Satoshi Nakamoto published a document describing the Bitcoin protocol and its working version. In January 2009, the first block (known as the genesis block) was mined, and Bitcoin came into existence. Bitcoin is the first successful decentralised cryptocurrency.

Thus, the establishment of cryptocurrencies has been a gradual process involving contributions from multiple pioneering figures.

3. Which venture capitals invested in zai?

Here are some notable venture capital firms that have invested in cryptocurrency and blockchain projects:

1. a16z (Andreessen Horowitz): a16z is one of the leading venture capital firms in the blockchain and cryptocurrency space, having invested over $100 million in Web3 projects, including Uniswap, Compound, dYdX, Solana, Celo, Dfinity, Flow, Arweave, Near, and others.

2. Coinbase Ventures: Since its establishment in 2017, Coinbase Ventures has been a leader in cryptocurrency venture capital, investing in hundreds of companies at various stages, including important players in the Web3 and cryptocurrency ecosystem.

3. Dragonfly Capital: Dragonfly Capital is a venture capital firm focused on cryptocurrency and blockchain investments, having invested in nearly 80 companies, including OKCoin.

4. Alchemy Ventures: Alchemy Ventures is a venture capital firm that invests in early-stage decentralised computing and emerging blockchain technologies, having invested in projects such as ChainSafe Systems, Bluzelle Networks, and Althea Protocol.

These firms have made significant investments in the cryptocurrency and blockchain space, driving development and innovation in the field.

4. How does zai work?

The operation of cryptocurrency is based on blockchain technology, which is a decentralised digital ledger. Here are its main operational principles:

1. Decentralisation: Cryptocurrencies are not issued or managed by any central authority, but operate through a distributed network.

2. Blockchain: All transactions are recorded in a public ledger called the blockchain. The blockchain is a series of connected blocks, each containing multiple transactions.

3. Encryption and Security: Cryptocurrencies use encryption technologies to validate and secure transactions. Each transaction is encrypted and verified through complex mathematical calculations.

4. Mining: New coins are created through a process known as mining. Miners use high-performance computers to solve complex mathematical problems in order to validate transactions and create new blocks.

5. Transactions: Users can buy and sell cryptocurrencies through exchanges and store them in digital wallets.

6. Consensus Mechanism: The blockchain network ensures that all participants reach consensus on the validity of transactions through a consensus mechanism. This mechanism can be Proof of Work (PoW) or other consensus algorithms.

In conclusion, cryptocurrencies achieve decentralised, secure, and transparent transactions through blockchain technology, encryption, and consensus mechanisms.