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