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The Phonon DAO Network is a privacy solution for public blockchain networks and true layer 0 scalings. Learn all about blockchain layers. Phonon DAO uses a protocol that relies on secure hardware to allow participants to conduct private off-chain transfers of assets that reside on-chain. Phonon transactions are completely validated between the participants of a given transaction. Only users directly involved in a Phonon transaction have access to transaction data.
Compared to public permissionless blockchains, the Phonon DAO network provides considerable scalability and privacy benefits. Phonon Protocol does not necessitate global transaction broadcasting. There is no Proof of Work, no Proof of Stake, and no other sort of community consensus. Check out all you need to know on PoS and PoW. Transactions are strictly peer-to-peer (p2p) between two compatible pieces of hardware via an encrypted tunnel.
As mentioned above, the Phonon DAO Network is a peer-to-peer (p2p) system that uses unique hardware-derived cryptographic properties to prevent multiple spends. Compatible device types include SIM cards and smartcards, which use the same type of chip seen in today's credit cards. So, secure hardware isn't simply restricted to hardware devices. Utilising the cutting edge security that ensures safety in the current global payments system endows Phonon with robust security. Phonon will work with any blockchain wherein the curves underlie a given blockchain are supported by the system on a chip (SoC) used in Phonon cards. As of now, this will cover 99% of all public blockchains. The Phonon DAO token and protocol governance framework are built on Ethereum.
Phonon is true digital money. You can spend, trade, send, hold, and spend Phonons without paying any transaction costs once you have them. Phonon's benefit is that it is peer to peer, entirely off-chain, private, and completely free! The Phonon Network's on- and off-ramps are still being built (one would be required for every blockchain). Once these are built, you'll need to pay the transaction fees for that chain to convert your on-chain assets into Phonons (and vice versa).
The security methods used by the Phonon DAO are similar to those used by banks. An internal physical unclonable function (PUF) chip is tied to the hardware's identification. A PUF is a digital fingerprint created during the manufacturing of hardware. The PUF ensures that no copies of hardware can be made. A manufacturer confirms to the Phonon DAO that it will preserve the security integrity of its hardware when you want to sell Phonon-compatible hardware by staking the Phonon DAO token as collateral, which can be forfeited. One advantage of Phonon's design is that even if a malicious hardware manufacturer existed, they could only break the rules with other cards they were connected to. There is no worldwide pool from which to steal.
Native Phonons are coins created by mining (or staking or minting mechanics) on Phonon hardware. These native Phonons can be understood and verified on the hardware itself, unlike Phonons created to house on-chain assets from blockchains (Ethereum, Bitcoin, etc.). They can be made in any unit of value and traded with no transaction or gas fees.
On top of Ethereum, the Phonon network provides a highly scalable framework for cash-like transactions. It does not require watchtowers, third-party validators, hubs, fraud proofs, or groundbreaking math, and it does not leak data. It's just a scalability and privacy solution that derives all of its properties from the uniqueness of PUFs. Users can be confident that the randomness on these PUFs cannot be deleted or copied in any way, as the Phonon DAO Network depends on it for security.
Dr. Karl Kreder and the GridPlus team, creators of the popular Lattice1 hardware wallet, are the creators of Phonon. In December 2021, the team released Phonon as open-source and turned over administration to the Phonon DAO.
In Oct 2021, it was announced that Phonon went live, and since the inception of 2022, this token has been tradable at the market. On the first day of its lunch in the market, Phonon saw its All-Time-High price at $0.014. But its downward trend started after the ATH, and now, on Mar 15, 2022, this token is currently traded at around $0.0093. It is too soon to discuss the price trend in this network, but the short-term technical analysis provided at Cryptologi.st indicates that the Phonon sentiment is presently bearish. The majority of technical indicators are showing sell. However, it goes without saying that Phonon is a potential project to invest in since it is the world’s first Phonon transfer!
In the next two months, Phonon's price has the potential to touch its ATH at $0.14. Also, Phonon’s price growth can reach 1.3% by the end of 2022. Since the future of this project seems promising as it facilitates transactions in the blockchain, it has the potential to pump 4.2% by 2023. Nevertheless, all these predictions are based on the current performance of the Phonon DAO project. Improvements in Phono DAO technology will change the game for the better. However, lagging behind blockchain technology can devastate the price growth of the coin and make it see a $0.005 range of price.
No one can deny that the crypto world is filled with projects that are much more than just hype. Phonon has a lot of potential considering its performance, but still, we need to keep an eye on how the project evolves in the coming months. It is entirely up to you to DYOR (Do Your Own Research) and identify a suitable project to benefit on time. While not providing financial advice, Cryptologi.st can shorten the search process and keep you updated with the latest news and the top project reviews.