Phala Network is boca's ecological privacy protection infrastructure. Phala Network started its ecological construction in Boca at the beginning of 2019. As a parallel chain of privacy computing in Boca, Phala conducts large-scale distributed deployment of CPU with TEE function based on poW-like incentive mechanism, so as to solve the privacy problem on blockchain. Thus serve DeFi, data services and other applications on Boca.

Phala Network aims to be a Web3.0 privacy protection infrastructure.

With the development and change of human society, the factors of production also change accordingly. In agricultural times, land and labor force were the main factors of production. In the industrial age, capital and technology were the main factors of production. In the digital age, data has become one of the most important factors of production. However, as the data processing method of centralized computing exposes more and more obvious problems, how to find a balance between efficient use of data resources and personal privacy protection has become the focus of everyone. In fact, the core of data privacy protection is to establish a trust relationship between data users and data owners. At present, it is possible to build a distributed trust mechanism based on block chain by using block chain + privacy computing.

So far, this privacy issue has seemed insoluble in the traditional Internet world, but the industry is constantly innovating to address the conflict. Phala Network, a project that realizes "confidential smart contract", emerged as The Times required. Through the innovative adoption of TEE+ blockchain fusion architecture, Phala Network constructed a trusted Network of universal smart contract that can encrypt data, thus not only using the transparency and imtamability of blockchain, but also protecting people's data privacy.

The Trusted Execution Environment (TEE) is a special area of the CPU that is strictly isolated from the rest of the CPU, preventing data stored internally from being hacked or affecting the secure Execution of the Environment. If smart contracts in blocks, chain operation cannot achieve data encryption, or separate the TEE cannot achieve data sharing, therefore the TEE + block chain integration architecture is the best solution Phala network which adopted the architecture, combined with block chain can solve the problem of functional, security and ease of use of the TEE, the state data encryption is stored in the chain, The execution of the contract is completely isolated from the outside world to ensure the confidentiality of data. In turn, with blockchain technology, data can be encrypted and stored on the chain, everyone can download the data, and each node can reach an agreement through the consensus mechanism. However, Phala's de-trust is guaranteed by trusted hardware (currently Intel). Traditional independent hardware has two disadvantages: first, the service will stop when the power is pulled out, which cannot meet the immediate availability; Second, the inconsistent code execution sequence of multiple trusted computing nodes in interaction will lead to conditional competition and the correctness cannot be guaranteed. Trusted hardware can achieve composability by introducing layering and event traceability. Simply put, Phala separates the operation of read and write contracts, and layers can realize the independence between layers. The shutdown of miners will not affect the network, which can ensure security. Event traceability stores events that trigger state changes in immutable logs, any changes are recorded, and the blockchain is responsible for validating every miner action, so state consistency is guaranteed.

PHA is the original functional token of the platform, and has the following use cases: 1. Obtaining trusted computing resources: all Phala trusted computing power purchase, on-chain resources and off-chain data storage are settled with PHA. 2. Data transaction Protocol Fees: Phala provides a standardized data collection, analysis, and transaction protocol in the form of a contract as the data transaction infrastructure. The agreement realizes the ecology of confidentiality and credible assets for all parties of the buyer and seller. The PHA is the legal settlement currency for data transactions and participates in market regulation. 3. Security guarantee: Phala network requires Gatekeeper to be online at all times as a security guarantee node, while election Gatekeeper needs to pledge PHA as a security deposit. If Gatekeeper does anything wrong, he will forfeit his security money. 4. Community governance: PHA token holders who exceed a certain threshold have the right to participate in the governance and voting of Phala DAO. 5. Payment for other services: PHA will also be used for settlement of other applications or services under its ecosystem, such as Web3 Analytics, cross-chain transfer bridge that provides confidential smart contracts for other public chains, etc.

Phala Network uses TEE smart contract algorithm.

1. Confidentiality and support to be verified: It ensures the reliable execution of each smart contract in the network, and protects data confidentially to prevent disclosure. With the remote proof protocol, users can always verify that any transaction is safely executed in TEE; 2. Unauthenticated, untrusted: All transaction executions can be traced back to a set of encrypted certificates. Certificates are generated and signed by trusted computing protocols and can be verified by users on the blockchain at any time; 3. Composability and interoperability: 80% of ethereum's top 10 smart contracts are combined, and Phala is the first network to realize composability and interaction of confidential contracts; Cross-chain computing: Allowing other blockchains to share the Phala infrastructure and reduce the cost of computing power through Polkadot's XCMP based Substrate technology.

1. Phala Network adopts TEE+ Blockchain Hybrid Architecture to implement confidential smart contracts. The secret smart contract runs in a special Enclave inside the CPU, and the execution of the contract is completely isolated from the outside world, ensuring the confidentiality of data. At the same time, combined with blockchain, TEE solves the problems of functionality, security and ease of use, making TEE truly usable. 2. Introduce Layered Design and Event Sourcing to allow contracts to interoperate with other contracts and even external blockchains. The layered design ensures safety, and the downtime of miners will not affect the network. 3. Anyone with a STANDARD CPU equipped with TEE can become a miner. Blockchain is responsible for verifying every miner's execution, and users can safely use confidentiality contracts without special hardware. 4. Phala Network, developed based on Substrate, can provide cross-chain confidentiality contract support. Ultimately the chains can share the Phala infrastructure to the benefit of the entire blockchain community.

PHA Matrix mining (70%) is performed by data executors (such as TEE miners), data owners, and data users, 70% of the initial mining is obtained and the quantity is fixed. It's not working yet! Target users airdrop (9%) pledge ETH and DOT tokens to obtain PHA. Mortgaged Phala will be unlocked based on the developer's "usage" on the Phala network. Test net rewards (1%) are used to motivate wide participation in the test net. Private financing (15%) was used for Phala development funds, operation promotion, and no financing to the public. This part of PHA will be unlocked 30% after the main network goes online. 25% will be unlocked every 6 months after the initial release and 20% in the last 6 months. Currently private placement has ended, there is no public offering. Team rewards (5%) For development team incentives. This part of PHA will be unlocked 10% after the main network is online. After the initial unlock, 5% will be unlocked every month.

Phala combines the benefits of Web2.0 and Web3.0, namely the performance of centralized applications and the trustless privacy of distributed applications. It combines TEE miner and gatekeeper through poW-like economic incentive model, with one party responsible for processing user transactions (TEE miner) and the other responsible for maintaining the verified blockchain (gatekeeper). Delivering cloud computing services in a transparent, decentralized cloud ensures that its practitioners (i.e., TEE miners and gatekeepers) cannot tamper with users' workflows or data in a demonstrable way. With the exception of user data processing, everything is completely open and transparent.

Miners were able to dig out PHA, which accounted for 70 percent of the initial circulation, or 700 million. The initial daily output was fixed at 720,000 PHA, of which 144,000 PHA was automatically incorporated into the Treasury, all of which was allocated by miners on a participatory basis. Phala designed two types of rewards for miners: online rewards and calculated rewards. Online rewards: TEE devices will get rewards if they stay online, which will be distributed by all online devices according to performance; Computing rewards: Phala randomly distributes private computing tasks to online miners who complete them.

Phala and Oasis are both leaders in "TEE+ blockchain hybrid architecture". Oasis was founded in 2018 by Dawn Song, a professor at a prestigious university. The separation mechanism of computing and consensus designed by Oasis allows ParaTime to operate in parallel and provides high operation capacity for the network. Oasis is bringing privacy computing to the real world with its rapidly advancing ecosystem. Phala is built on the star cross-chain project Polkadot ecology, which is naturally capable of cross-chain and convenient for other ecological calls, and has a wide application prospect. With the addition of the "non-Byzantine" consensus mechanism, it is highly efficient to reach consensus, and can achieve contract-level parallelism and interoperability, which is highly practical on the whole. In the future of the Internet of everything, privacy computing is undoubtedly a necessary underlying technology to ensure information security, and the innovative practices of Phala and Oasis will also help promote the industry to mature and implement. With privacy technology, we can safely license our data to any third party, allowing them to make full use of the data to provide us with more accurate services without worrying about privacy breaches.

Phala's potential is not to be overestimated. It eliminates the requirement that all data in a smart contract be made public, allowing users to safely store their keys in a contract that can be flexibly authenticated and then released without fear of losing their keys. Phala also enables cross-chain and cross-secret contract interactions in the blockchain while ensuring encrypted storage, providing a more rational solution for public, federated or other data exchange services. Data as the 21st century as "oil" as precious resources, data security is naturally the most important thing.

Phala's biggest vision is not to create the greatest privacy, but to become the largest trusted computing platform. Phala addresses one technical challenge and three scenarios. The technical challenge is multi-party secure computing. The three scenarios focus on decentralized finance, gaming and gaming products, and privacy protection. Phala is about receiving private data input and output from multiple parties by implementing a trusted third party of hardware, and honestly performing the established logic to feedback the results. That's what we call TEE miners when we mine PHA. Phala uses this technology in conjunction with blockchain to enable private computing. Whether to achieve the biggest trusted computing platform is to use the Tee combined with block chain solved the multiparty secure computation, lack of PHA is really caught the market blank, today's big companies stop block in front of the chain is one of major factors are still unable to effectively realize the confidential data privacy protection, and the emergence of PHA may change in the future. Now, the first app on Phala will be pLIBRA, which was developed by the team to provide privacy protection for users of Facebook's Libra blockchain project. In the near future, we will see the results.

Phala Network was one of the first 15 core members to join the Substrate Builders Program and the first Web 3.0 boot camp. Phala Network came with a halo after completing a strategic investment valued at ten million dollars at the very beginning, Investors include Candaq Group, IOSG Ventures, SNZ, Water Drop Capital, Coin World, Ruixin Capital, Wujichain, Incuba Alpha, Exoplanet Capital and Blue Mountain Labs, among others. In the era of Web 3.0, private computing is likely to be the new "need."