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Phala Network is developing on-chain privacy that aims to provide confidential computation and data protection services to the entire Polkadot (DOT) ecosystem.
The cryptocurrency space—far, far before its current form—started out with the ethos of financial inclusion and privacy. This meant transacting in a fully private, safe manner while still viewing all such transactions in a publicly accessible and immutable database, i.e. the blockchain.
Somewhere down the line, this use case lost prominence and the blockchain was opened up to much bigger implementations, such as (but not limited to), smart contract services, decentralized identities, oracles, tokenized assets, non-fungible token, art, and a plethora of other features.
Then came Ethereum, with its blockchain-as-an-operating system narrative that allowed developers to build their own use cases atop its blockchain. High-speed blockchains like Polkadot, Cardano, and others followed soon after.
But while the privacy narrative got lost somewhere among all that, a relatively new project is working in that regard on the Polkadot ecosystem. For the uninitiated, Polkadot is among the top ten cryptocurrencies of the world by market cap, providing economic scalability by enabling a common set of validators to secure multiple blockchains.
And bringing privacy to it is the Phala Network, whose founders say is the first confidential smart contract network built on Substrate that aims to provide confidential computation and data protection services for enterprises and users.
The project would serve the whole Polkadot ecosystem as one of the Polkadot parachains, or projects that are commissioned by and run atop Polkadot to better the entire ecosystem.
Phala’s two products are the pLIBRA and Web3 Analytics. The former is a confidential computation component built for Libra granted by Web3 foundation (as per a blog in March 2020) while the latter is a tool that analyzes user data and output results without invading personal privacy.
More use cases would be added to and unveiled on the network as it grows to serve more people and their communities.
In terms of technology, Phala applies a Trusted Environment Execution (TEE) design that allows confidential data to run in an isolated and private environment and outputs results alone with authorization.
This allows for two separate, distinct organizations to share sensitive data with one other without worrying about a potential data leak.
Another benefit of Phala is its interoperability features that would allow any two blockchains to interact with each other in a private manner (a difficult problem to solve).
As of today, the Phala Network’s PHA token has a 1 billion supply, and its mainnet was released last year. It has a market cap of over $41 million, and its current circulating supply is 142 million (subject to change as token lockups are released).
Article produced by Shaurya Malwa - Read the full article:
Polkadot price was showing good buying pressure even though it hit a new ATH at $19.5. The price consolidated for almost 3 days before it proceeded to surge a whopping 18.86% in a single 4-hour candle. However, this surge was put to a halt as Bitcoin began falling on the charts. As a result, Polkadot’s price now sits at $16.5 after dropping 14.76% in under 8 hours. Its price needs to breach a crucial resistance level to stay bullish, else, the bears will push DOT to $14.9 or lower.
The price broke out of the bullish flag and was nothing but strong as DOT saw an 18% surge in 4 hours. However, the price seemed to have hit a ceiling at $17.76 on January 20, a level that also prevented the price from heading higher the first time around on January 16. Not only is this price a good resistance level but it is also the 1.618 Fibonacci level.
As crucial as this level seems, the price needs to climb above the $16.9 level first and then worry about breaching the $17.76 level. A failure to conquer the $16.9 level would give sellers the opportunity to push the price lower.
Although the SuperTrend indicator shows a buy signal, the top might be in for altcoins, at least as long as BTC is dropping. If Bitcoin continues to drop, we can expect DOT and other altcoins to drop. In this case, DOT might test immediate support at $14.9; massive selling pressure at this level could push the price lower to $14.23, which is a 14% drop from where the price currently stands.
The RSI, Stochastic RSI, and the MACD indicator all show the failure of potential bullish signals displayed. However, due to the recent drop, the indicators have turned bearish.
Polkadot needs to climb above the $16.9 level to continue its trend higher and perhaps retest its ATH. However, a failure to do the same could push the price down subsequent support levels $14.9 and $14.23.
Article produced by Akash Girimath - Check to the technical analysis:
