1. What are DONs?

Introduction to Decentralized Oracles (DONs)

Decentralized Oracles (DONs) are important infrastructure in the token economy, especially in the decentralized finance (DeFi) sector. They provide smart contracts with the ability to retrieve data from the external world, allowing applications on the blockchain to interact with real-world information.

Role of DONs

1. Data delivery service: DONs can relay real-world data (such as prices, events, etc.) to smart contracts, enabling 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 perform trust-minimized off-chain computations, such as automated trading and monitoring the status of smart contracts.
3. Proof of Reserves (PoR): DONs can validate 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 example, in scenarios involving stablecoins, yield aggregators, decentralized exchanges, etc.
2. Synthetic assets: DONs can assist in creating synthetic assets, such as tokens that reflect 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 technical monopoly.
2. Anti-censorship: DONs provide anti-censorship features, ensuring that the transmission and computation of data are not affected by external interference.
3. Permissionless access: DONs allow anyone to access and use data without needing to obtain permission.

In summary, DONs are important infrastructure in the token economy, providing the ability to obtain data from the external world and supporting the development of decentralized finance and other application scenarios.

2. Who founded DONs?

Based on the provided information, there seems to be no direct mention of the founders of "Dons" Tokens. However, from the first search result, we can learn that the KuCoin exchange was founded by Michael Gan and Eric Don in September 2017. The "Eric Don" mentioned here might be related to your inquiry, but there is no specific information indicating that "Dons" is a type of token. Therefore, it is not possible to identify the founders of "Dons."

3. Which venture capital firms invested in DONs?

According to the provided information, the following venture capital firms invested in tokens or related fields:

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

These venture capital firms' investments in tokens and the Web3 field indicate their confidence in and long-term potential of these sectors.

4. How do DONs operate?

The operation principle of tokens is mainly based on blockchain technology. Here are the basic processes:

1. Transaction records: When a user performs a transaction, such as A transferring Bitcoin to B, this transaction record is broadcasted to the entire network.

2. Block packaging: These transaction records are bundled into a block. Each block can store about 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 the blockchain. This structure ensures the immutability of transaction records.

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

5. Consensus mechanism: Blockchain networks use a consensus mechanism to ensure that all nodes agree on the transaction records. This mechanism can be 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; instead, it is maintained collectively by multiple nodes. This makes blockchain safer and more reliable.

7. Cryptographic technology: Blockchain uses cryptographic technology to protect the security and integrity of transaction records. Each block contains a unique hash value, any modification to the contents of the block will change the hash value, thereby being rejected by the network.

In summary, tokens ensure their security and reliability through blockchain technology, the Farm; Mine process, and consensus mechanisms.