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The Phala Network (PHA) functions as a decentralized cloud computing service provider. The developers seek to create an alternative to the current status quo that has left customers paying high fees for nominal offerings. Notably, the Phala Network was built using Polkadot with the goal to provide efficient Web3 integrations to the market.
The Phala Network is now operational in +50 cities across the globe. The protocol has over 66,576 virtual computers in operation across +22,000 network nodes. The demand for confidential smart contracts continues to grow which has helped the Phala Network maintain steady adoption rates.
What Problems Does Phala Network (PHA) Solve?
One of the main problems that the Phala Network seeks to eliminate is centralization. The current cloud computing sector is dominated by major tech firms such as Amazon AWS or Google Cloud. The Phala Network leverages a network of nodes to provide low-cost reliable data storage and processing.
Lack of Scalability
The Phala Network was built to ensure that scalability issues would never be a problem. The Polkadot blockchain enables high-performance transaction throughput. The Phala Network operates as a trustless computation platform within this ecosystem. The technical structure of the network provides low latency and high security to the network.
Lack of Security
Another major issue with cloud computing systems today is security breaches. Since the data these systems use isn’t processed in hardware secure enclaves, it’s never isolated from attacks. The Phala Network integrates a popular implementation of TEE called Intel SGX. This deterministic code can function within secure enclaves. It can operate here without affecting other processes or the underlying protocols
Benefits of Phala Network (PHA)
You will find a lot of benefits when you use the Phala Network. The company provides a trustless and private computational environment for business, personal, and research clientele. The system leverages Polkadot’s proven security to remain tamper-proof. You can find CPU time, on-chain storage, network bandwidth, off-chain storage, and more.
One of the best features of the Phala Network is the confidential contracts. These smart contracts were built from the ground up to protect the privacy of managed programs. The Turing-Complete smart contracts can be deployed by developers as easily as traditional smart contracts.
The Phala Network enjoys full interoperability within the Polkadot ecosystem. Additionally, the protocols smart contracts can interoperate with each other and external blockchains. The network leverages a composite design to remain compatible with multiple standards including Intel SGX and AMD SEV, and other popular options.
Phala Network users and developers have full access to the underlying code and all contract executions are verifiable on-chain. This approach enables anyone to easily verify that a specific smart contract is operating.
The team behind the Phala Network made sure to make interoperability a prime concern. The network features a cross-chain bridge. This feature makes it easier for developers to create multi-chain applications. The system also leverages Polkadot XCMP to accomplish this task.
How Does Phala Network (PHA) Work
The Phala Network operates as a Polkadot parachain. Parachains are a core component of the Polkadot ecosystem. They are designed to integrate with other networks to improve the overall user experience. Interestingly, the Phala Network was built using a variation of the TEE-Blockchain Hybrid Architecture.
This setup maximizes data protection and supports the creation and execution of smart contracts. The network offers multiple products across its wide-ranged infrastructure. The cross-chain confidential widgets feature simplifies integration into existing systems and streamlines development which saves money.
pDiem is a confidential computation component. Developers can use this service to create anonymous smart contracts. It was designed to support Libra features initially. Interestingly, the service was built in collaboration with the Web3 foundation.
The Web3 analytics features provide users with an interactive interface to conduct real-time data analysis. The suite includes a variety of helpful tools that empower users to analyze user data and output results without violating anyone’s personal privacy.
There are two main members of the Phala Network, users and worker nodes. Users are the ones who invoke, query and deploy smart contracts on the platform. Their main job is to verify cryptographic data via the node software.
The users’ requests go to the worker nodes who process them. Worker nodes run confidential contracts in TEE-compatible hardware to protect privacy and remain responsive. These off-chain environments ensure the rest of the network remains protected.
Worker nodes are bound to your data through a system of economic incentives and penalties. To become a worker node you must stake a certain amount of PHA tokens. If your node acts maliciously, you forfeit this stake. The system also uses a Remote Attestation Service to validate if a Worker Node has deployed pRuntime efficiently.
PHA is the main utility token for the Phala Network. Users need to pay for services using this token. Developers must use these tokens to execute smart contracts as well. PHA is a limited supply token with a cap of 1 billion coins. It also plays a vital role in the network’s community governance system. Users can stake PHA to gain voting rights and put forth proposals to improve the Phala Network in the future.
History of Phala Network (PHA)
The Phala Network was founded in 2018 by Hang Yin. Yin still functions as the Co-founder and Chief Scientist of Phala Network. If he sounds familiar, it’s because he was the head developer for the Equihash mining algorithm used by Bitcoin Gold.
How to Buy Phala Network (PHA)
Phala Network (PHA) is currently available for purchase on the following exchanges:
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.
The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)
Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying PHA. Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality. It is the best exchange for residents of India.
Phala Network – Fighting Centralization and Saving Users Money
The Phala Network is part of a new wave of decentralized cloud computing services. These networks offer real benefits to users including more security and lower fees. As such, you can expect this sector to continue to expand in the coming months as more platforms and users join the party.
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