Today we take a look at old projects from 2020.
Phala Network project, its token PHA coin, has performed very well in the past week, rising by 428%+ in 7 days, and has now fallen back to $0.4549. The current market value of PHA coin has reached $354 million, ranking 180th in market value. Let's take a look at what PHA is all about!
Introduction
Phala Network was founded in 2018. At the beginning of the project, Phala Network positioned itself in the privacy computing track, combining the smart contract execution environment with TEE to achieve safe and reliable smart contract execution. At the same time, Phala Network also provides a complete privacy protection mechanism to ensure that users' data is in their own hands. In 2023, because the US stock market led to the AI-based trend in the market, Phala Network followed the AI trend at the time and became an artificial intelligence agent. It also followed the concept of modularization and built itself into the execution layer of artificial intelligence.
Phala Network is the execution layer for Web3 AI. By enabling AI to understand and interact with blockchains, it clears the way for the first billion users to join Web3.
Phala Network's multi-proof system is the answer to the AI execution problem. On top of the Phala Network, you can easily build tamper-proof and unstoppable AI agents that are tightly integrated with on-chain smart contracts through AI-Agent Contract.
Agent Smart Contracts: Create AI agents for smart contracts using natural language and programming languages.
Connect to the Internet of Multi-Agents: Make your agent accessible to other cross-chain AI agents.
Practical application of the project
Confidential AI inference is the cornerstone for protecting sensitive data and ensuring secure execution of AI models in Web3. By implementing the LLM model in a Trusted Execution Environment (TEE), Phala Network provides private and verifiable AI computation. This powerful approach addresses fundamental challenges in the Web3 ecosystem: data privacy protection, secure execution guarantees, and computation verifiability. These features are critical for applications where protecting user data and model integrity is critical.
Agent Smart Contracts: Create smart contract-centric AI agents for popular web3 services and smart contracts. "Govern" your AI agents through a DAO to implement business logic for your agents.
Connect to the Internet of Multi-Agents: Make your agent accessible to other cross-platform AI agents deployed on Autonolas, FLock.io, Morpheus, Polywrap, etc.
Launch and earn incentives: Own your proxy and build profitable token economics through our default token economics model, or customize your own token economics.
Project Background
This is an old project. It did not receive much investment before and its background is average, but the project team has been working hard.
PHA Token Economic Model
Maximum supply: 1 billion
The allocation is okay, and the project party doesn’t get much. Generally speaking, it is an old project, and the project party is still working on it, so there is a lot of room for operation. In addition, 78% has been unlocked, so there is no need to worry too much.
Unlock progress:
0.01% is unlocked every day, which is not much at all and quite healthy. The funds will be unlocked until 2030, so there will be no major selling pressure.
Why PHA can rise
After Phala Network introduced the artificial intelligence coprocessor, although the underlying operating logic of the Phala Network project has not changed, the main narrative of the project has shifted from the original privacy computing infrastructure track to a sub-track in the AI track: the algorithm track, and its competitors have also become Morpheus, QnA3.AI, Fetch.AI, SingularityNet, ChainGPT and other projects.
With its superior performance, Phala Network has made the deployment and use of artificial intelligence agents a very simple matter. While solving the ease of operation and deployment for users, it also solves the privacy concerns of some users, giving Phala Network a huge advantage in the competition in the AI track.
The official tweeted a few days ago that version 2.0 will be launched in 2025, so the token price skyrocketed!
Summarize
After launching the AI agent contract, Phala Network positioned the project in the AI track, which is beneficial to the development of the project and the growth of the coin price. However, the technical challenges that followed also increased exponentially. In particular, Phala Network adopted a complex AI agent contract based on privacy computing, and will continue to connect new AI Agents in the future, which poses a huge challenge to the technical team.
In general, there are pros and cons. The pros are that AI is undoubtedly a hot topic at the moment, and the future of the project will definitely be brighter. But there are also cons, which is also a severe test for the project technology, because it does not mean that you can always make money by speculating on hot topics, but you need real technology.
Finally, due to the high popularity and hype of the project, I suggest buying it after a correction. It has high liquidity, no selling pressure, and good fundamentals. Coupled with the support of AI vision and next year's plan, it is still good. Wait for the correction and welcome the arrival of the bull market!
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