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ToggleIn the context of the strong development of Web3, data privacy and smart contract security are increasingly becoming crucial factors. Phala Network was born to address these issues by combining TEE (Trusted Execution Environment) technology with blockchain platforms to create a confidential cloud computing ecosystem. What makes this project special? Let's explore the Phala Network project and the investment potential of the PHA token through the following compiled article!
What is Phala Network (PHA)?
Phala Network is a blockchain protocol focused on protecting data privacy and security, allowing the deployment of confidential smart contracts on a decentralized infrastructure. The project applies a combined TEE-Blockchain architecture, where all data processing occurs in a secure hardware environment (TEE), helping to prevent information leakage and forgery.
- TEE: A safe zone in the CPU (Intel SGX, AMD SEV...), isolating data from the operating system and external software.
- Blockchain: Recording activities, distributing ownership, and ensuring transparency.
Phala allows processing sensitive data while ensuring privacy, and opens up potential for DeFi applications, AI, medical data, personal finance, and many fields requiring high security.
- Combine Non-Fungible Token, Decentralized Identity, and game-like interaction to demonstrate digital identity.
- User data is processed securely in TEE, creating a safe and private Social Web3 model.
Lending-Staking Protocol (PHA Lending Market)
- Users can lend PHA to Worker nodes for staking, creating an internal ecosystem interest market.
- Helps reduce technical barriers for users who cannot run nodes but still want to participate in network security and receive rewards.
Overview of PHA Token and Tokenomics
Basic Information
- Token Name: Phala Network
- Ticker: PHA
- Blockchain: Ethereum (ERC-20), Substrate
- Token Standard: ERC-20
- Contract: 0x6c5bA91642F10282b576d91922Ae6448C9d52f4E
- Token Type: Utility and Governance
- Total Supply: 1,000,000,000 PHA
- Circulating Supply: 796,795,838 PHA
Token Distribution
- Mining Rewards: 70%
- Foundation & Ecosystem: 15%
- Team: 9%
- Investors: 6%
Token Utilities
- Network fee payment & Worker node staking
- Governance – participating in DAO voting
- Block mining rewards & computational security activities
How to Earn and Own PHA Tokens
To earn PHA from Phala Network, you need to understand the high-security TEE network with scalability, which is the backbone of Phala's secret contracts. The computational power of worker nodes with TEE-supported CPUs is crucial to this network. Similar to PoW blockchains, Phala miners need to run a "mining client" to provide computational power to the network and receive rewards.
Phala Network encourages technologically savvy miners to run network nodes to support the Phala network. 70% of the initial supply (700 million PHA) is dedicated to mining, with an initial fixed daily supply of 720,000 PHA, of which 144,000 PHA is transferred to the treasury and the remainder is distributed proportionally to miners.
Phala has two types of rewards for miners: online rewards and computational rewards. To set up a computational node, you need:
- Hardware: A computer with an Intel SGX-supported CPU
- Software: Linux supporting SGX (recommended Ubuntu 18.04)
- Public IP to mine alone or join a Phala-supporting mining pool
Additionally, Phala's economic model allows Worker Nodes to borrow PHA for staking. Phala implements a risk-free lending protocol similar to Polkadot's NPoS, allowing PHA owners to lend tokens to worker miners at an interest rate agreed upon by both parties, creating an interest market.
Phala Network Wallets and Exchanges
- Hot Wallets: Metamask, Trust Wallet, Coin98, MyEtherWallet
- Cold Storage: Ledger, Trezor
- Exchanges: Binance, OKX, Bybit,…
Refer to exchanges partnered with HC Capital:
- BingX: hulkcrypto.com/go/bingX (ref code: AZRMZC)
- OKX: http://Hulkcrypto.com/go/okx (ref code: 15835910)
- Bybit: hulkcrypto.com/go/bybit (ref code: 32672)
- Bitget: http://hulkcrypto.com/go/bitget (ref code: ezdy)
- Binance: hulkcrypto.com/go/binance (ref code: 139872038)
- Substrate Builders Program – Recognized by Web3 Foundation as one of the most outstanding technical projects.
- Intel & AMD – Compatible with Intel SGX and AMD SEV TEE.
Summary
Phala Network is one of the rare projects in the Web3 market that directly addresses the issue of data security and privacy in cloud computing. With an architecture combining TEE (Trusted Execution Environment) and blockchain, Phala creates a powerful platform for building secret smart contracts, serving fields such as DeFi, AI, DID, and personal data.
With an experienced founding team, a solid platform technology, and a clear development direction in the Polkadot ecosystem, Phala is gradually affirming its role as a necessary security infrastructure for the future of Web3.
However, due to its high technical nature and special hardware requirements, Phala will still need time to become widely accessible to the general public. Nevertheless, if you are a long-term investor or looking for Web3 projects with practical applications, PHA is a token worth considering in the security and privacy data sector.
This article is not investment advice. Always research thoroughly before making a decision (DYOR – Do Your Own Research).
