Phala Network

What is Phala Network (PHA)?

• Phala Network is a decentralised cloud computing service on Polkadot.

• It utilises Trusted Execution Environments (TEEs) for data security.

• PHA operates as a Polkadot parachain for interoperability.

Tokenomics

• Native utility token: PHA.

• Total supply: 1 billion tokens.

• Rewards miners and gatekeepers; used for computing resources, data exchange fees, and governance.

As of today #{today’s date}, the price of Phala Network is ₹11.51 INR or 0.1348 USD, with a 24-hour trading volume of 26476536.75 USD. The market capitalization for Phala Network is 106704060USD. The circulating supply is 794106745.83 Phala Network, with the total supply also being 1000000000 Phala Network.

Pros:

• Enhanced privacy and security through the use of TEEs.

• Interoperability within the Polkadot ecosystem.

• Incentive mechanisms for miners and gatekeepers.

• Governance participation for PHA token holders.

:

• The complexity of the technology may present a barrier to adoption.

• Competition with other privacy-focused blockchain projects.

• Dependence on the adoption and success of the Polkadot ecosystem.

Why Should You Invest in the Coin?

• Potential in decentralised cloud computing and privacy-preserving technologies.

• Integration with the Polkadot ecosystem, focused on secure data processing.

USP of the Coin

• Confidential computing services on blockchain.

• Data privacy and security through TEEs.

• Interoperability with the Polkadot network.

Problem the Coin is Solving

• Addresses data privacy, security in cloud computing, and smart contract execution.

• Provides a trustless environment for sensitive data processing.

Founder and Team Background

• PHA was founded by Hang Yin, co-founder and Chief Scientist.

• Hang Yin developed the Equihash mining algorithm for Bitcoin Gold.

• Team with blockchain and technology sector experience.

ICO Price

• ICO price: $0.0028, raised $28,000.

• Token sale: 17th June 2021 to 10th March 2022.

Risks Associated in Investing in the Coin

• Market volatility, regulatory changes, technological challenges.

• Competition, adoption of the Polkadot ecosystem.

The Phala Network whitepaper introduces a novel approach to addressing the privacy and confidentiality challenges of blockchain technology, particularly for smart contracts. Authored by Hang Yin, Shunfan Zhou, and Jun Jiang on October 17, 2019, the paper outlines the design and implementation of Phala Network, a confidential smart contract network built on the Polkadot ecosystem. The primary motivation behind Phala Network is to enable the processing of sensitive business and user data on the blockchain without compromising confidentiality, a critical limitation in existing blockchain platforms where all transactions and smart contract interactions are public.

The whitepaper identifies the lack of privacy and confidentiality in current blockchain solutions as a significant barrier to their broader adoption, especially in applications requiring the handling of sensitive information. While cryptocurrencies like Monero and Zcash have introduced privacy features for transactions, extending these privacy guarantees to general-purpose smart contracts has proven challenging. The paper critiques existing privacy solutions, including Multi-Party Computing (MPC) and Trusted Execution Environment (TEE) based approaches, for their performance, reliability, and interoperability limitations.

Phala Network proposes a hybrid architecture that combines blockchain technology with TEE, specifically Intel SGX, to create a confidential computing environment for smart contracts. This approach ensures that the execution of smart contracts and their data remain private, leveraging the security features of TEEs to protect against external attacks and vulnerabilities within the operating system or hardware.

A key innovation of Phala Network is its cross-chain interoperable framework, enabling confidential smart contracts to interact with other contracts and blockchains. This is achieved through an Event Sourcing and Command Query Responsibility Segregation (CQRS) architecture, allowing for deterministic state transitions and message passing between contracts, facilitating interoperability without sacrificing confidentiality or security.

The whitepaper details the protocol and system design of the Phala Network, including the roles of users, worker nodes, gatekeepers, and the blockchain itself. Worker nodes execute confidential contracts within TEEs, while gatekeepers manage network secrets and ensure the availability and security of the network. The Phala blockchain serves as the network's backbone, storing contract states, identities of worker nodes, and transactions.

Phala Network also introduces state encryption, key management, and node registration mechanisms, ensuring that contract states are securely stored on the blockchain and that worker nodes can be trusted to execute contracts faithfully. The paper discusses the responsiveness monitoring of nodes, key rotation protocols, and handling unresponsive nodes to maintain network integrity and availability.

Finally, the whitepaper presents pLIBRA as the first application of Phala Network, a privacy-preserving version of the Libra Coin built on Polkadot. pLIBRA demonstrates the potential of Phala Network to enable confidential and interoperable decentralised applications, offering a glimpse into the future possibilities of privacy-preserving blockchain technology.

In summary, the Phala Network whitepaper presents a comprehensive solution to the privacy and confidentiality challenges of blockchain and smart contracts. By leveraging TEE technology and a novel architectural design, Phala Network aims to enable a new generation of confidential, interoperable, and secure decentralised applications.