Phala Network (ETH: $PHA) provides decentralized application (dApp) developers in the Web3 space with a breakthrough trustless off-chain compute infrastructure like no other. This week, we had the opportunity to speak with senior leadership at the Phala Network, and discover how this disruptive technology can supercharge smart contracts and help build better tools for Blockchain developers.
What are Phat Contracts?
Phat Contracts, an off-chain programming model running on Phala Network, enables developers to build dApps with omnichain compatibility, internet connectivity and verifiable computation. These benefits will make your smart contracts even smarter and can be simply integrated via no code or low code developer experiences using Phat Bricks.
Phala Network seeks to unlock the limitless potential of smart contracts without compromising the core tenets of Web3. The project’s infrastructure has been built with multiple layers of security that guarantee trustless and verifiable computation.
A Reward-based Ecosystem
Computer power providers can use SGX-capable CPUs as ‘Workers’ on the Phala and Khala networks to earn incentive. Understanding Phala Network’s tokenomics and staking mechanism is crucial before proceeding. A Worker must run a Performance Test and stake some tokens to get the initial Value Promise:
Gemini Tokenomics (Worker Rewards), Phala Network
- A virtual score for an individual worker representing value earned which is payable in the future, to motivate workers to behave honestly and reliably
- Equal to the expected value of the revenues earned by the worker for providing power for the platform
- Changes dynamically based on the worker’s behaviors and the repayment of Rewards
- Mining honestly: �V grows gradually over time
- Harmful conduct: punished by reduction of �V
To utilize the existing CPU power of the network, you can simple use the Stake to Compute mechanism.
Unique Features of the Phala Network
Several features make Phala Network the go-to solution for supercharging blockchain-based smart contracts. These are:
Phat Contracts support all EVM-compatible chains, which includes BSC, Ethereum, and all layer-2 solutions like StarkNet, and Polygon. Phat Contracts also support substrate-based chains like Moonbeam, Astar, Polkadot, and others. In short, with Phala Network, developers can build real omnichain use cases.
Phala Network’s Phat Contracts supports all standard HTTP/HTTPS requests, which allows developers to send requests directly to Web2 APIs.
The Phala Network employs cryptographic authentication for all computations to ensure they are verifiable and auditable.
Arbitrary Complex Logic
Smart contract developers can execute intense, real-time, off-chain computations while avoiding transaction fees and network latency to boost the user experience and dApp functionality at a low cost.
Lens Protocol Integration
In June, Phala Network announced it was integrating with the Lens Protocol, the biggest social graph protocol in Web3. The integration will bring off-chain computation capabilities to Lens DApp builders.
Lens Protocol allows social media users to own and migrate their account data. Phala’s new integration will allow the development of faster and more scalable decentralized social media apps, such as Lenstube and Lenster.
The $PHA Token
$PHA is the native cryptocurrency token of the Phala Blockchain. These ERC20 tokens launched on the Vendetta testnet before the official launch of the Phala Network mainnet. They currently play several roles within the ecosystem.
- $PHA tokens are used to compensate ‘Workers’ that power the compute infrastructure in the Phala Network.
- In order to run a Phat Contract, users must stake $PHA tokens.
- $PHA tokens serve as the governance token in the Phala Network DAO.
- $PHA holders can delegate their tokens to the ‘Stake to Earn’ mechanism to receive rewards, which is currently only available on the Khala network.
As of August 25, 2023, $PHA tokens are trading for $0.08156. This equates to a -93.3% discount from the all-time high price of $1.23. There are a maximum supply of 1 billion $PHA tokens. The fully diluted market cap currently stands at over $81.1 million, with the market cap of the circulating supply at $48.8 million.
Phala continues to expand the capabilities of its network, regularly issuing updates to investors on Medium and their other rapidly growing social medias. Recent efforts include the integration of two popular blockchain networks, Lens Protocol and the Polygon Network. These endeavors will certainly pay off in the long-term, with $PHA token holders inevitably prospering as we proceed closer to the next bull run.
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