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is is Tony with Nextiva, explaining what a VoIP phone is and how it works. VoIP stands for voice over internet protocol, which uses the internet to make phone calls instead of traditional landlines. Cloud-based phone systems use hard phones, physical phones that connect to the internet with an ethernet cable, and soft phones, which are software-based apps on devices like laptops or smartphones. Hard phones look like traditional desk phones, while soft phones offer flexibility for making and receiving calls on the go.