Phala Price Prediction
Before we look at the Phala price prediction, let's understand the netwrok. The Phala Network is a decentralised cloud computing protocol that aspires to compete with traditional cloud computing services like Google Cloud and Amazon AWS.
Cloud computing is the operation of large, web-based data repositories that provide computing resources to end users, such as data storage and computing power. Excess capacity from everyday computers can be used with the Phala network, resulting in a more distributed approach to cloud computing and storage.
Phala intends to provide these services via a decentralised, global network of computing resources that can scale for performance while maintaining confidentiality and security.
To accomplish this, the network employs two types of "worker node" participants who allow the network to function:
- Gatekeeper nodes: Interactions between network users and interactions with other blockchains are organised by gatekeeper nodes. They also maintain the blockchain state and consensus rules.
- Miner nodes: Miner nodes run a CPU network and perform various computation tasks by renting computer power to the network.
The network benefits from using two different types of nodes to divide consensus and computation responsibilities.
The Phala team launched Khala (PHA) on the Kusama network to provide a cloud computing network on its platform. In July 2021, Khala secured the fourth parachain slot auction.
Who developed Phala?
Phala Network Foundation founded the company in 2018 and is led by former Google Software Engineer Hang Yin and former Tencent Product Manager Marvin Tong.
Since 2019, the company has raised $1.68 million through two rounds of private token sales, resulting in the distribution of 15% of the initial token supply to investors. Three Web3 Foundation grants were also awarded to the project.
In September 2020, the PHA crypto token was released as an Ethereum token. In 2021, it was released as a Kusama token.
Phala Network's purpose
The prime objective is to create a general-purpose smart contract platform that always protects the security and privacy of its users.
For this, Phala Network promises the following features:
- Confidentiality: Contrary to other smart contract blockchains, the platform aims to prevent the disclosure of any entry, exit, or intermediate state of a confidential contract. It only responds to consultations that the contract has approved.
- Code reliability: Anyone can confirm that an output was generated by a particular smart contract made public on the blockchain.
- State consistency: Anyone can confirm that execution took place at a certain height in the blockchain, suggesting that the execution's outcome depends on the chain's current state.
- Availability: There should be no single point of failure, such as the miner being disconnected.
- Interoperability: Contracts can communicate with one another as well as with other blockchains.
How does Phala function?
Phala is being developed as a Polkadot parachain, or a custom blockchain that feeds into the main Polkadot blockchain, known as the Relay Chain. Polkadot's shared security, transaction settlements, and consensus are all handled by the Relay Chain. Phala gains access to Polkadot's core features via integration with the Relay Chain.
Furthermore, Phala believes that as a parachain, it will be quick to connect to the other parachains built in the Polkadot ecosystem. The computations required to ensure transaction validity and network integrity are performed by participants, who send requests to the network as transactions, and miner nodes.
To ensure confidentiality, work on the miner node's CPUs is done within a secure enclave known as a Trusted Execution Environment (TEE). This encrypted area within most modern computer processors ensures that even the mining machine's owner cannot see or tamper with what is stored inside their computer's enclaves.
Phala gatekeeper nodes act as a middleman, establishing end-to-end encryption between users and CPU miners while ensuring transaction privacy. When the data reaches the secure enclave, it is decrypted and executed. The information request's results are then re-encrypted before being sent out of the enclave.
According to Phala, any computation run on the platform is private and versatile across use cases, whether machine learning data for enterprises or smart contract execution for DeFi apps.
Phala, for example, used its technology to develop Web3 Analytics, a platform that collects and securely processes personal data. In that case, confidential smart contracts can only perform data analyses on this data if the users authorise it, giving them complete control over their data.
PHA: Phala native token
PHA is the Phala Network's native utility token and is used in its cloud-based economy. The PHA token, with a maximum supply of 1 billion, aids in network security and governance mechanism.
PHA allows any participant to purchase computing resources and services, whether an external blockchain in need of resources or an individual looking to store data securely. In turn, those who provide resources to secure the network can be compensated in PHA.
Additionally, PHA is used by gatekeepers and miner nodes, who need to stake their PHA to carry out their tasks. Staking guarantees that if they act maliciously, their staked PHA will be slashed as a punishment.
Finally, anyone who purchases PHA can become a stakeholder and participate in the parachain's on-chain governance, which means they can vote on any proposed changes to the Phala network.
Phala price prediction
Turning to the Phala price prediction, Phala Network (PHA) is currently ranked #443 in the cryptosystem with a price of $0.0838, a circulating supply of $409.25 million, and a total supply of $1 billion. As of today, its market capitalisation is $34.33 million, and its fully diluted market capitalisation is $83.88 million.
The Phala price prediction is that it is expected to reach an average of $0.0886 by the end of 2022, according to DigitalCoinPrice's Phala price prediction. Furthermore, the data show that the price of PHA will reach $0.34 in 2025. The coin is expected to be around $1.17 by 2030.
Phala Network is a network dedicated to providing advanced private computing services supported by smart contracts deployed in Polkadot's parachains.
Phala Network is committed to a new security scheme that combines the power of blockchain and its proven robustness with security systems embedded in hardware to provide users with greater privacy.
However, Phala Network is a project still in the works with enormous potential, mainly because of its commitment to private smart contracts, which can significantly impact companies and services focused on security. As a result, it is a project that both users and business services concerned about privacy will be interested in.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.