# 2019:  Birth of Phala

Phala network is a network concept proposed by Dr. Hang Yin and Dr. Shelven Chou in early 2019, aiming to provide a decentralized Web3 computing network driven by the economic model designed by Hang Yin and Marvin Tong. With a server-based security model, the network can aggregate the computing power provided by large-scale users and be called by any user holding PHA tokens. It is worth noting that the consensus system of Phala Network is security services offered by Polkadot network.

**Polkadot** is an open-source blockchain platform and cryptocurrency that allows distributed computing. The network uses the Proof of Stake (POS) consensus algorithm. Blind Assignment for Blockchain Extension (BABE), the protocol adopted, is derived from Ouroboros. The protocol was adapted by Gavin Wood, co-founder of Ethereum, developed by Web3 Foundation, and initially implemented by Parity Technologies.Phala network is organized and managed by a decentralized DAO, but its core development team has been struggling in the long process of infrastructure development. It is hard for them to expect that Phala network will play a vital role in the years of disputes in the AA era.


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