The key is here:-

Each iPhantom is programmed with a unique identifier and a unique key. This ensures that each iPhantom will have its own private key which is different from every other iPhantom. The identifier and the key are used to negotiate sessions with Phantom Gateways. This process will be explained later.

The Phantom Gateways are concentrators that reside at a high-end, world class datacenter with access to various Internet backbones. They are custom designed hardware with multiple processors dedicated solely to processing data coming from and going to the iPhantoms. At a very high level, the iPhantom connects with the Phantom Gateways which provide a high level of security
They are VPNing you into their network which they secure..... Nice concept for the average user.