Phala Encode Parachains Event

1. Parachain for
Compute & privacy
Twitter @marvin_tong
Phala Network

2. WTF is…?

3. We are building a permissionless global compute cloud that inherently supports data
privacy while remaining trustless, which is Phala Network.
It is going to disrupt AWS, Tencent Cloud, Azure, Alibaba Cloud and other permissioned
public cloud providers by catering to the next generation of web applications and new kind
of data economy.
The Web3 Cloud

4. A Web3 cloud is open, permissionless and sharing
IAAS, PAAS own
Data Center
IAAS, PAAS
Security : how to make sure the
server owners can't be
malicious when they have total
control over data centers?
Availability: how to make sure
the servers maintain continuous
availability to users?
30%-60%
infrastructure
cost
Saved!
Key Constraints
AWS/Alicloud
Web3 cloud Decentralized Network

5. We want to combine the best of Web 2.0 and Web 3.0 - i.e. the performance of
centralized programs and trustlessness of distributed apps.
Web3 Cloud Main Properties
Features Decentralized Trustless Private Scalable
Web2 Cloud × × ✓ ✓
Blockchain ✓ ✓ × ×
Web3 Cloud ✓ ✓ ✓ ✓

6. Core Tech

7. The trustless is achieved by
NPoS system and Polkadot
shared security.
The trustless is achieved by TEE
workers and Phala’s special
economic design
Consensus Computation
Make sure cloud servers
can’t be evil, even we don’t
own them!
1. We Need to Detach Consensus from Computation
Challenge: How to Make Servers "Behave"?

8. IdentityKey
EcdhKey
pRuntime
worker
IdentityKey
EcdhKey
Client
Contract Query
Gatekeeper
pRuntime
IdentityKey
EcdhKey
MasterKey
ContractKey
Contract Assignment
Request Contract Key
Gatekeeper
State
Worker
State
Contract
State
Contract Command Contract Upload
State Restore
State Update
blockchain
2. We Need the Whole System to be Trustless

9. Ethereum
without sharding
Polkadot
with 100 parachains
Phala Network, linearly scales with the
number of Secure Enclave workers
Not Restrained by Scalability of Blockchains

10. Parachain
1st Privacy

11. Web3 Grant Testnet Khala Net Phala Net Use cases
2019, Q2
2021, Q3,
Kusama 2022, Q1
2020, Q1 2021, Q4,
Polkadot
Web3 Cloud Roadmap

12. Phala Network will run as a
parachain on Polkadot
Khala Network is running as the
4th parachain on Kusama
132,280 KSM
4th Slot

13. https://github.com/orgs/P
hala-Network/projects/11

14. -
OUR
TEAM
-
POA Khala Council Members
*subject to governance approval
Dr. Konstantin Shamruk
Ph.D. Economics, Toulouse School of Economics.
Studied under a Nobel prize winner Jean Tirole and
worked at IMF.
Led game-theoretic analysis of Phala Network
token economics model and wrote the Economic
White Paper
Joe Petrowski
Technical Integrations Lead at Web3 Foundation
and Parity, developer thought leader in the
Polkadot ecosystem and host of the Relay Chain
podcast.
Dr.Jonas Gehrlein
Ph.D Economics, University of Bern
Research Scientist at Web3 Foundation,
working on economic design issues in the
Polkadot ecosystem. Jonas' main focus is
on behavioral economics.
ZOÉ MECKBACH
COO of MH-IT & Service GmbH, Zoé
Meckbach is a senior Polkadot
ambassador, interviewer, and an advocate
for Web3 and cybersecurity.

15. Servers
To Earn

16. Distributed To
Community
80%
5%
1%
Total supply: 10 B
Circulation cap: 0.17 B (1/4/2021)
Team share: 5%
For cloud supply
end subsidy
70%
PHA, a token be mint by CPU

17. Subsidy for Khala Network
- Initially 60,000 per
day
- Reduce 25% every
45 days

18. *The algorithm only represents the team's suggestion, and will be decided by public vote
Core theory for V0.9 Mining Model
Value Promise
Value
Promise
Stake Multiplier,
Khala Re=1.5
ConfidenceScore is
based on the miner's
SGX capabilities
For each miner, based on the amount of
mortgage, hardware cost, operating cost
and security, Phala's expected promise of
rewards (the min sum reward number of
all future rewards)
This value will dynamically change based
on the performance of a single miner: the
V of a normal miner will continue to
increase, and the V of a bad miner will be
reduced.
V determines the size of your reward, the
larger the V, the more rewards
Vmax=30000
Hardware
cost

19. We expect over 100k TEE cores online in
the first 24 hours after Khala launch
Worker Node Stats on Testnet
*based on testnet data
$60 mln worth of hardwares

20. Built on Khala?
What can be

21. Supply and Demand for Web3 Cloud
Cloud Platform
Defi
Data
market
Web2/Enterprise
Web3
Web2 /Enterprise:
- IAAS & PAAS
- Serverless
- Cheaper cloud with
trustless privacy
- Public cloud with
enhanced security
>> private infra
Supply end :
- Phala Blockchain
- Servers
management
- Token as subsidy
Web3:
- Confidential DeFi
- Data market
- DID

22. -
PROJECT
STAGES
-
-
PROJECT
STAGES
-
Privacy Defi
● Lite bridges with privacy
● Diem Bridge
● EVM family bridges
● BTC family long tail bridges...
● Mint pDOT, pKSM, pACA...
● Swap in good privacy
● Orber book for WHALES
● Safer from MEV attack
● Earn and farming
● Lending in good privacy
● Safer from MEV attack
● Protect your position
data from others
● Real blind box with
confidential content
● NFT for private keys
● Privacy Data box for future
data market
Bridges PhaSe Swaps
PhaSe Lending Mystery NFT

23. PhaSe Hub launched
Polkadot Privacy Hub Ethereum-Khala Bridge
(1st parachain-eth bridge)
app.phala.network

24. How developers build privacy dapps?
Docs: https://wiki.phala.network/
CPU enclave
WASM

25. THANKS!
marvin@phala.network