What is Phala.Network (PHA) | What is PHA coin
What is Phala Network?
Phala is the first confidential smart contract network built on Substrate, aiming to provide confidential computation and data protection services for enterprises and users. Phala Network would serve the whole Polkadot ecosystem as one of the Polkadot parachains
Who founded Phala?
Our core team members came from famous Internet companies such as Google, Tencent, etc. Hang Yin, Co-founder and Chief Scientist of Phala Network, was the head developer for the new Equihash mining algorithm of Bitcoin Gold.
What product does Phala have?
- pLIBRA: a confidential computation component built for Libra granted by Web3 foundation
- Web3 Analytics: a cutting-edge data analysis tool for next-generation, able to analyze user data and output results without invading personal privacy.
As Phala Network grows, there would be more amazing applications and services based on Phala to serve people and our communities.
What technology does Phala apply?
Phala applies TEE (Trusted Environment Execution) which allows confidential data to run in an isolated and private environment and outputs results alone with authorization.
An example:
Google wants the DAU (Daily Active User) data in the recent 100 days on Facebook. Facebook is willing to share yet worrying about user data leak. Here’s how they could perfectly solve the problem with Phala Network:
1. Google developers write their requests into codes on Phala Network and send them to Facebook;
2. Facebook developers receive the requests and started to run the codes locally in Facebook’s nodes;
3. Only results are outputted and sent to Google, instead of all activity information containing sensitive user data.
What’s the difference between Phala and projects of the same kind?
The-best-of-its-kind interoperability.
We allow different contracts to call each other before executing computation, which is hard to realize for many other projects. We’ve been discussing relevant solutions with Parity and have come out with a mature plan.
Besides, compared with other confidential computation projects, we focus more on cross-chain of data, not only deposits and assets. Our vision is to enable ANY BLOCKCHAIN to be served with our confidential computation technology.
Is it complicated to integrate Phala’s technology?
Not at all. There are 2 options:
- To integrate Phala Network through ETH bridges
- To develop on Phala Network with WASM languages (try automatic transfer with a Solidity-WASM complier!)
For our products such as Web3 Analytics,** it would only take a few more minutes to enable Phala’s function!**
Phala Detail
Phala Network is a cross-chain interoperable confidential smart contract network for privacy-preserving decentralized apps and services. We are developing our pilot product – Web3 Analytics, a decentralized data analytic tool – to present our vision of Web3 that we want to give the value of data back to everyone and add liquidity on data market.
Phala Token Economy
Phala’s token economics design has been one of the frequently asked questions since 2019. After weeks of discussion, composing, and refining, we are proud to announce that we have officially published our Token Economics Whitepaper!
Also, we composed a shorter and simpler version here — containing economic model, token distribution, governance, etc. — for everyone to quickly understand how our token works. Enjoy. :)
A brief of PHA
- Total supply: 1 billion
- Circulating supply: 137 million
- Private sale price / opening price: $0.01
- Private sale ended.
- No ICO/IEO/Public sale design.
- Contract: 0x6c5bA91642F10282b576d91922Ae6448C9d52f4E
- CoinMarketCap: https://coinmarketcap.com/currencies/phala-network/
**70% of PHA (700,000,000 PHA) **will be distributed to TEE miners through mining.
How does Phala distribute PHA?
Base on the principle of “fair distribution based on contribution”. We hope the ones who paid efforts and time to our network could be rewarded respectively.
Our distribution system is designed as bellow:
Do I need to stake PHA before mining?
To be a Phala miner,** you will need to stake 1,620 PHA/core for your device, **which means if you are using a 4-core CPU, you will need 6,480 PHA.
All TEE miners will averagely share the daily total supply of 720,000 PHA (576,000 PHA after taxed).
How does PHA function?
- Network Utility: to trade or exchange network resources such as trusted computing resources, data trading settlement, security, and other services. To be specific, PHA mainly functions for TCPU (Trusted Computing Processing Unit), on-chain computing and storage resources, off-chain storage resources, and other data value captured by a series of standardized protocols.
- Governance: PHA works as a crucial identification of Gatekeepers and member of PhalaDAO. To be one of those important roles in Phala community, you have to stake a certain amount of PHA.
What consensus mechanism does Phala apply?
Phala applies **NPoS (the same as the one of Polkadot) **where nominators may nominate Gatekeepers they trust and gain returns from validators’ production by staking PHA for them.
Phala expects 40% of PHA to be staked to NPoS while 60% PHA to be paid and traded in the markets. The annualized inflation rate and the annualized return rate of staking are expected to be 5% and 12.5% (in the circumstance that 40% of PHA are staked).
What roles does Phala design in the network?
We have 4 roles in Phala Network: Gatekeeper, Nominator, TEE Miner, and PhalaDAO.
- Gatekeepers manage the distribution of keys and produce new blocks. Staking of PHA and one or more nominators are essential for one to be a nominator.
- Nominators are entitled to nominate one or more Gatekeepers with a certain amount of PHA staked for them.
- TEE Miners provide computing power for the whole network as they keep their mining hardware online (pcs or laptops)
- PhalaDAO is responsible for the growth of Phala Network and open to all kinds of roles: developers, GateKeepers, investors, miners, and normal members.
How will Phala distribute PHA as mining rewards?
Phala will distribute 700 million PHA through** Matrix Mining**. The total supply of mining rewards will be fixed without extra issuance and mining reward will dwindle as the time passes.
Diagram of Matrix mining reward
Miners can obtain PHA through 2 types of ways:
- simply being stably online;
- completing computing tasks.
Are there other ways to earn PHA?
Other than mining, we also encourage users to join this fight against data breach by taking their control back on their own data. Any app accessed to Phala would have to ask permission before collecting data, and users will gain returns after they authorize the utility of their own information.
Also, to realize the vision above, we encourage developers and enterprises to access their products and apps to Phala Network or our product W3A. We prepare rich bounties for the first 10,000 products willing to access.
Will there be airdrop events?
Yes! We will have 3 waves of LockDrop airdrops, which, we think, will help us identify our believers who value the future of personal data control.
- Wave I: To stake KSM to Phala nodes to receive KSM interest rewards and PHA airdrops (Ended).
- Wave II: Polkadot Parachain Slots Auction (coming in 2021)
- Wave III: TBC
Does Phala apply any innovation on governance?
- Anonymous voting: using confidential contracts to complete voting to guarantee democratic anonymity;
- Liquid Democratic Voting Mechanism and relevant algorithm: to fully increase the voting participation rate;
- Introduced DAO instead of Committee: to increase openness and combine staking with community and decision making.
Besides, all amendments to Phala protocol require a referendum to be validated.
How does Phala realize secret voting?
As a confidential smart contract platform, Phala Network is able to make each election verifiable and trusted in system design as trust relationships could be calculated confidentially.
What is Liquid Democracy? How to implement it?
Liquid democracy originates from Bryan Ford’s paper “Delegative Democracy” published in 1884 — for a certain issue, one can vote directly, or to delegate the right to a representative.
In liquid democratic DAO, the delegation relationship is progressed as a dendrogram. To calculate and update the number of votes, it is necessary to process preorder traversal for postorder traversal when each vote occurs. The complexity of the time cost would be O(n).
It is hard to achieve in traditional blockchains but achievable on Phala Network. Liquid democracy calculation requires a large pack of data which might not fit in one block; gas fee could be expensive as well. Yet with TEE technology, we can perform liquid democracy with efficiency and confidentiality.
What’s the function of Phala DAO?
Phala’s governance will be managed through DAO instead of a representative committee system or the House of Lords system.
The voting right of DAO is defined as “Share”. Share is non-transferable and can be issued indefinitely though, the total proportion is always fixed as 100%. DAO’s decision-making system follows the majority rule and output results as “approve” or “disapprove”.
Token Distribution
- TEE miners: 70%
- Private Sale: 15%
- Ecosystem Building & Parachain Auction: 9%
- Team Incentive: 5%
- Testnet Incentive: 1%
Token Detail & Release Schedule
- Total Supply: 1,000,000,000 PHA
- Circulating Supply: 137,000,000 PHA
- Seed Round Price: Completed in September 2019; Proportion: 1%; 0.0028 USD
- Private Round Price: Completed in 2020 Q2-Q3; Proportion: 14%; 0.008-0.01 USD
- Token Release Schedule:
ModuleRatioDescriptionTEE Mining70%Fixed amount of token for TEE miners; isolated from the inflationStakedrop and IPO (Initial Parachain Offering)9%Obtainable though Polkadot ecosystem tokens such as KSM, DOT, etc.;Testnet Incentive1%For testnet incentive programsPrivate Sale15%Supporting Phala team to develop the project and build the community in the early stage. 60% of this section will be unlocked after the mainnet launch or token transfer enabled, with 20% unlocked every 6 months.Developer Incentive5%Incentives for the core builders, among which 20% (10,000,000) will be unlocked after mainnet launches or token transfer enabled, with 5% unlocked every month
Related links
- Official website: https://phala.network/
- White paper: https://files.phala.network/phala-paper.pdf
- Economic White Paper: https://files.phala.network/phala-token-economics-en.pdf
- Test network: https://app.phala.network/
- W3A: http://w3a.phala.network/
- Weibo: https://weibo.com/7202623314/profile?topnav=1&wvr=6
- Twitter: https://twitter.com/PhalaNetwork
- Medium: https://medium.com/phala-network
- Telegram: https://t.me/phalanetwork
- Youtube: https://www.youtube.com/channel/UCzm2tq2-1geDURldGCG6rpA/videos?view_as=subscriber
Looking for more information…
☞ Website ☞ Explorer ☞ Explorer 2 ☞ Whitepaper ☞ Source Code ☞ Social Channel ☞ Social Channel 2 ☞ Message Board ☞ Coinmarketcap
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