What is Phala (PHA) and How Does it Work? | KuCoin Crypto Gem Observer

What is Phala (PHA) and How Does it Work? | KuCoin Crypto Gem Observer


In recent years, privacy has been a recurring headline in the news. As more people come to understand what is happening to their data, they have been calling for changes and looking for alternatives to the mainstream conglomerates that prey on them. 

In comes the blockchain: a system with innate security and privacy capabilities that some projects have been looking to utilize. Phala is doing just that, offering general-purpose confidential smart contracts for DApps and DeFi.

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What Is Phala?

Phala is a cloud computing network at its core. It offers computing power not unlike those seen in traditional online networks while maintaining a strong focus on privacy. In fact, Phala Network is a parachain of Polkadot, and is able to utilize the Polkadot ecosystem infrastructure to achieve this.

There are two types of nodes, known as TEE Workers and Gatekeepers. TEE Workers provide the hardware that guarantees protection with respect to confidentiality and integrity. Meanwhile, Gatekeepers run nodes that maintain the Phala blockchain.

It combines both open source software to form a P2P network that is trusted, while incorporating a blockchain to ensure security is maintained. Essentially, it provides the best of both worlds: The ease of use and compatibility of Web 2.0 and the security and confidentiality provided by Web 3.0.

 

Who Created Phala?

Phala was the brain-child of four individuals. Together, they have a wide range of skills and experience working in and out of the blockchain space.

Marvin Tong, who serves as CEO, previously worked in tech giants such as Didi and Tencent as the Senior Product Manager. Thanks to his experience in strategy, he was able to lead the trading strategy design at the million-user scale.

As the lead developer, Hang Yin is able to draw from his experience working with Google, where he took on the role of senior software engineer. He also previously founded and led the development of Bitcoin Gold.

Zhe Wang is the COO at Phala. His background includes working as the former CEO & CTO of Xiaohei AI Games & Haha AI Vending Machine. He holds over 20 patents, of which three revolve around blockchain.

Jun Jiang is Phala’s CTO. He is the webmaster of RubyChina and the former CTO of KnewOne. He also previously worked as a Software Architect at DJI.

 

What Is The PHA Token?

The PHA token is the native utility token of Phala Network. Its uses are varied, ranging from governance and payments to access to the features of Phala Network.

The token distribution is as follows:

  • Matrix Mining: 70%
  • Token Sale: 15%
  • Airdrop: 9%
  • Team Reward: 5%
  • Reward for Testnet: 1%

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What Is PHA Used For?

PHA is important for many stakeholders on Phal Network. The main focus, privacy and confidentiality, relies on the use of PHA. It is the native token for confidential contracts, for example, and allows for confidential computing resources such as CPU time and on-chain storage.

Importantly, it is a security guarantee that gatekeepers must stake in order to show dedication to Phala. Those who betray the rules or otherwise do anything malicious will be fined. Otherwise, governance of Phala Network relies on users holding PHA to join PhalaDAO.

 

Closing Thoughts

Privacy remains in the limelight to this day. Phala is providing a solution to an ongoing problem that many people care about in a transparent way. Being decentralized and confidential to its core, down to the blockchain technology used, Phala is able to meet the needs of this growing audience.

Add in the talented team, community engagement and educational content being released, as well as the recognition of being part of the Polkadot ecosystem, and one can expect Phala to grow further.



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