#PHA# 📈 5x in a week People are starting to pay attention to what the PHA project is, and what the logic behind its rise is.

The Phala project is the first phase parallel chain project of Polkadot, a star project of the bull market in 2021, aimed at becoming the privacy protection infrastructure of Web 3.0. It is developed based on Substrate and achieves confidential smart contracts through TEE blockchain architecture, providing privacy computing services for the Polkadot ecosystem. Phala is the privacy computing infrastructure of Polkadot. PhalaNetwork is the privacy computing parallel chain on Polkadot, based on a PoW-like economic incentive model. Phala releases countless CPU privacy computing power and applies it to Polkadot's parallel chains, thus serving other applications on Polkadot such as DeFi and data services. Applications based on Phala, such as pLibra and Web3 Analytics, have already received grants from the Web3 Foundation. PHA is the native functional token of the platform and has the following use cases:

Trusted computing resources: Use PHA tokens to purchase trusted computing resources in network and data exchange (e.g., trusted computing capacity, on-chain computing and storage resources, and off-chain storage).

Data exchange fees:

Phala provides a contract-based data exchange infrastructure for standardizing data collection, analysis, and trading protocols. Using Phala's protocol, a confidential yet trustworthy trading ecosystem has been established for buyers and sellers.

Security guarantee: Gatekeepers must stake a certain amount of PHA tokens, which may be penalized for misconduct.

Governance: Holders of a certain amount of PHA can join PhalaDAO to participate in community governance.

The Polkadot ecosystem project Phala Network has keenly grasped the opportunity for AI development this time, actively integrating deeply with the AI field. By utilizing AI agent contracts, it strikes a good balance between security and efficiency while providing computing solutions for AI, meeting the current urgent needs for privacy protection and sufficient computing power in AI.