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In this video tutorial, Tony from Nextiva explains what a VoIP phone is and how it works. VoIP stands for voice over internet protocol, and it uses the internet to make phone calls instead of traditional landlines. There are two types of phones that work on a cloud-based phone system: hard phones, which are physical phones connected to the internet with an ethernet cable, and soft phones, which are software-based apps that can be downloaded to devices like laptops, tablets, or smartphones for making and receiving calls.