The Pi Network is well known to crypto enthusiasts, more so in the case of users who are just getting started with cryptocurrencies. They claim that users can mine cryptocurrency without the need for expensive hardware or sophisticated technology skills.
The most appealing factor regarding the Pi network is its promise to provide nontechies with job opportunities, and that garnered so much attention amid both hopes and doubts.
In this article, we will explain what the Pi Network is: what it does, how it functions, what benefits one might accumulate from this, and, in the end, what things demand vigilance.
What is Pi Network?
Pi Network is classified as a scalar cryptocurrency employing blockchain technology, a smart contract system designed to be user-friendly for everyone. Their primary focus is to simplify mining and make it less damaging to the environment than Bitcoin mining.
Invaluable or power-hungry equipment is a must when employing Pi. It is a user-friendly paradigm where Pi enables individuals to mine coins through smartphones.
There are special systems that Pi makes use of, which are based on the Stellar Consensus Protocol (SCP), which works flawlessly on mobile devices. Heavy computing power is not required to run this system. The only contribution the user has to make for the security of the network is to check in daily and confirm their whereabouts with other trusted users.
Who Created the Pi Network?
A group of Stanford University graduates, including Dr., created the PI network.
This all started with Nicolas Kokkalis and Dr. Chengdiao Fan wanting to broaden the horizon of cryptocurrency for everyday use. Unlike many crypto projects that have faceless founders, Pi Network has a public and transparent team.
With more credibility and a sense of safety and security, people tend to feel satisfied when joining. The team tends to grow long-term while ensuring user safety and utility, which are built around Pi coins.
The belief held by the founders is that if the cryptocurrency is to succeed, then it has to be easy to access, and it has to be made available to everyone, regardless of whether they are tech-savvy or rich investors.
Is It Safe to Use Pi Network?
So Far, Pi Network is believed to be safe for usage, because it does not require money to join or start mining. Basic information is requested from the user, and two-factor authentication is used for added safety.
Like with every form of crypto project, users need to be alert and take precautions. Passwords should never be shared, and the app should be downloaded solely from the official App Store or Google Play. Fake apps scamming users into believing that they are part of the Pi Network need to be treated with caution as well.
A commendable effort has been made to stay away from the red flags that infamously come with crypto scams.
Risks and Uncertainties
Even with its possibilities, the Pi Network has its own set of risks and troubles:
Centralised Control: While they are trying to move towards total decentralisation, the project remains managed by a core team. With this type of control, there is no guarantee of transparency and greater chances of abuse of their power.
Lack of Transparency: The whitepaper offers a description of the project, but other important documents, like the source code with the technical specifications, are not provided. Because of that, it is impossible to check what the project puts out for claims on its own.
Limited Utility: As of now, the Pi coin has the lowest value in the world. Its usefulness is non-existent since its worth is merely speculation and its projected advancements.
Privacy Issues: The Pi Network app has a history of obtaining information about users, such as phone numbers and email addresses. Even though the team claims to have strong policies in place regarding privacy, sharing such sensitive information always holds unwanted consequences.
The legendary saying: “Free isn’t truly free.” Anyone would agree: When there is no money involved, the user is the product. This saying resonates with the Pi Network, which, if used “free-of-cost,” probably earns through advertisements or user data.
The Nodoadeo Issue: The full features of the Node software, having been the epitome of true dividing up the work, are still being added.
As long as the Node network is not widespread and fully functional, the Pi Network will remain slightly centralized.
The Promise and Potential of Pi
Like any other cryptocurrency, the Pi Network has its fair share of benefits that add to its appeal. For instance:
Accessibility: The main benefit is the ease of access. A person only requires a mobile phone to start mining Pi, which eliminates the need for costly mining rigs or technical know-how.
Energy Efficiency: The proposed consensus mechanism, which is based on SCP, is designed to be much more energy efficient than proof-of-work systems such as Bitcoin. This strategy improves sustainability within crypto mining.
Community Building: The focus on building trust circles and the referral system motivates community participation and the growth of the network.
Actual market value through sub-networks and dApps, Pi Projects aims to develop within its ecosystem, which could lead to real-world value assigned to Pi coins.
The Stages of Pi Network Development
The Pi Project is being rolled out in several phases, each meant to test and enhance different aspects of the feature:
Phase 1: Design and Distribution – Users could mine Pi and assist in building the network during this stage, which started back in 2019.
Phase 2: Testnet Launch – Developers launched a test network to identify bugs and enhance features prior to the real blockchain switch.
Phase 3: Mainnet Launch – This phase started in December 2021 and includes constructing a complete blockchain that allows for the utilization, transfer, and trading of Pi coins.
Throughout these stages, the Pi Network team has meticulously ensured that the coin is not released into the open markets prematurely. Their goal is first to enable meaningful achievements such as purchasing items and services using Pi or utilizing the currency within apps developed on the Pi ecosystem.
How Does the Pi Network Operate?
The Pi Network functions via a tiered structure of user roles that collectively contribute toward the efficiency of the network:
Pioneer: This is the basic role anyone gets upon downloading the Pi Network app and starting the mining process. Pioneers simply push a button every 24 hours to confirm that they are present, enabling them to receive daily mining rewards.
Contributor: Users can expand their roles to Contributors after completing three mining sessions as a Pioneer. They contribute by submitting a detailed trust list of Pioneers to them. This enables the formation of a trust circle and security graph for the network.
Ambassador: Ambassadors perform one specific function: recruiting new users to join the Pi Network. With each additional active referrer, their bonus percentage of the mining rate increases, thus bolstering the security and size of the network.
Note: This role is more advanced because it entails installing and running the Pi Node application on a computer.
How Does Pi Network Work?
All active Pioneers, Contributors, and Ambassadors partake in the daily mining reward, which is divided between these three roles. The individual reward diminishes as the number of active users increases. This is implemented to drive scarcity when the network expands.
Waiting on the second phase of Pi Network’s functionalities, this section believes scarcity would further strategically be helpful for the network in the long term. However, Pi Network’s progress in the long term is still questionable.
The most appealing aspect is that cryptocurrency projects usually emerge with loads of anticipation. There is no avoiding the risks or unknowns when it comes to the Pi project, and with so much hype, these are the aspects that must be noted.
Ultimately, only time will tell if the precious expectations of the system will be able to achieve the value that emerges or if they will fail. All that’s certain is that waiting for what lies ahead is required in this project.
Conclusion: Pi Network
In today’s day and age, Pi Network offers one of the most intriguing systems, enabling users to customize their experience in mining cryptocurrency and aiding in building a strong community while keeping the mobile-centric focus, which clearly sets it apart in the tremendously crowded space.
Widely recognized as the novel advanced approach in the digital currency world, the essence of Pi Network focuses on creating a universal digital currency to be available for users across different demographics – delivering transformative potential for society.
The objective is beyond mere coins: building a reliable ecosystem of real individuals working toward a common purpose.
Pi Network, irrespective of whether or not it emerges as a key player in the crypto world, is reiterating that innovation and inclusion can coexist in harmony. This, for the majority, is enough reason to begin mining today.
FAQS: Pi Network
Is It True That Pi Network Is Free?
Pi Network is free to access without any hidden tactics, such as requiring payment to mine coins, draining your phone’s battery or consuming data on your phone.
When Can We Expect Pi Coins To Have Value?
Pi coins will likely acquire undisputed value once the network arrives at a durable mainnet phase and gets listed on exchanges. The team is actively working towards achieving this, but they cannot confirm a date at the moment.
Can Pi Coins Be Withdrawn?
Currently, Pi coins cannot be withdrawn or traded until the mainnet is launched to the public. Verified users will have access to coin transfers once the system goes live.
Is It True That The Pi Network Is Fake?
No, the Pi Network is not categorized as a scam. It operates with a verified team available to the public and has a definitive roadmap alongside zero concealed charges.
What Can Be Done To Increase My Pi Mining Rate?
Inviting friends will help raise your mining rate and form a trusted security circle. The more people you trust, the higher the speed of your mining.
