aemons?

Hi all,
I am a bit confused about daemons. I get that they are simple programs to do a single task, I think anyway, but when someone says "daemon", what do they mean? Is a hook a daemon? If daemons are simple, why are they used for such complex tasks as mail delivery? Are they software, or can they be firmware on microprocessors in otherwise non-computerized devices, like cars or thumb drives? Sorry for the random question, but I have heard the word a lot and cannot quite figure it all out. Thanks. 

Have a great day,
Alex
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