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Today, Tony from Nextiva explains what a VoIP phone is and how it works. VoIP, or voice over internet protocol, uses the internet for phone calls instead of traditional landlines. There are two types of phones for cloud-based systems: hard phones (physical devices) and soft phones (software-based apps). Hard phones connect to the internet with an ethernet cable, while soft phones are apps for laptops, tablets, or smartphones. This allows users to make and receive calls from any device.