Pi Network: What Is It?
Launched in March 2019, Pi Network is a Proof-of-Work cryptocurrency that allows users to mine Pi coins using their smartphones. Pi Network is very speculative in value since it is not formally listed for trade on any exchanges.
Important lessons learned
Users of Pi Network have access to a mobile mining function that allows them to mine Pi coins using the Pi mobile application on their portable devices. They participate in the validation of blocks and are rewarded with Pi coins.
The native cryptocurrency of the Pi Network is called Pi coin, and its holders may conduct transactions within the Pi ecosystem and pay transaction fees with it. There is a maximum total quantity of 100 billion Pi coins under the Pi Network mainnet supply model.
Investors are recommended to do independent research before to investing in Pi cryptocurrency while engaging with Pi Network, since there have been instances of unapproved listings of the coin.
Overview of the Pi Network
Pi Network presents itself as an effort to increase accessibility and spread awareness of cryptocurrencies by using a simple mechanism for mining and managing them. On March 14, 2019, Nicolas Kokkalis and Chengdiao Fan gave it its formal debut.
With the Pi mobile application, users may mine Pi coins on their iOS and Android smartphones as part of Pi Network's mobile mining functionality. The mining program was exclusive to those who were invited.Users just need to click once to mine Pi coins on their devices after downloading and configuring the program. The Pi network, which is expected to have 33 million users by 2022, has had remarkable growth in participation since its introduction and has amassed a sizable social media following.
The Pi network's participants, referred to as Pioneers, may earn Pi coins in a variety of ways, such as by operating a node on their PCs, introducing new users, or mining Pi coins using their mobile devices.
Please take notice that while Pi coin is listed on CoinGecko, the mainnet has not yet been deployed and the values shown are for IOUs that may not be exchangeable across exchanges. Always DYOR, and take extra care.
Pi Network's Operation
The mobile app represents the mining mechanism that will be officially deployed once the mainnet is operational for the Pi Network project's beta phase. Users of the smartphone application participate in block validation in exchange for Pi cryptocurrency prizes.
Miners using the mobile app connect to one or more nodes when they are active. Mobile miners ask whether the transaction has been added to the ledger when they connect. They also get the block's hash value and the most recent block number.
Both mobile miners and node owners get rewards for mining the block.
Consensus Formula
The Stellar Consensus protocol (SCP) is operated by Pi Network. David Mazières, the chief scientist of the Stellar Development Foundation, created SCP for the Stellar blockchain. It guarantees reliable and accurate updates to a distributed ledger via the use of a cutting-edge technique known as Federated Byzantine Agreements.
The SCP protocol makes use of an actual voting mechanism. The network's nodes cast votes to determine which blocks are legitimate and which ones should be mined next. Only when the majority of nodes agree that a block should be mined next and validate its authenticity will it be mined. The system's designer chooses the nodes that take part in this consensus. Although the SCP is energy-efficient, its centralization has drawn criticism.
Token Economy and Reward Structure
The native token of the Pi Network is called Pi coin. Pi coins are earned by users on the Pi Network via mining. In addition to doing transactions on the markets and apps developed inside the Pi ecosystem, holders may use their Pi coins to pay transaction fees. The Pi currency supply method is based only on network activity and is given out as incentives to users.
Users that took part in the beta mining program may transfer their tokens to the mainnet, even though there was no formal pre-mine. There is no set amount of cryptocurrency, in contrast to many others.
A fixed quantity of Pi coins is allotted to any user who registers for a Pi account and becomes a member of the Pi Network. Over time, this allotted quantity gets mined. In other words, the user's lifetime token mining capacity is limited to the amount allotted to them. Only the first 100 million users of the Pi network will get this allotment. Additionally, there is a referral program for new participants of the Pi cryptocurrency project.
For each currency manufactured for a member or referral incentive, the Pi coin mining process mints an additional Pi coin. This additional currency will be used to pay network developers. The member, referral, and developer rewards add up to the overall quantity of Pi coins. According to their whitepaper, the mainnet supply mechanism allows for a maximum total supply of 100 billion Pi.
Model of Governance
Pi Network uses a governance approach known as "Semi-DAO." Pi Network has a governance structure that maintains a core team in control while the community creates a powerful force that influences the project's decision-making, in contrast to the well-known decentralized governance method. The two-phase design of the governance model system is subject to change based on the quantity of active network users.
When there are less than five million active users on the Pi Network, the team directly asks the public for feedback on ideas. The project team engages the community via various engagement mediums and a forum that is integrated within the mobile mining application. Before making the final choice, the opinions of the whole community are taken into account. The next course of action is ultimately decided by the team. The second component of the governance structure kicks in when the community reaches five million active members. The group forms a committee with well-known community contributors on it. The Committee is in charge of creating suggestions and planning contributions from the local community. The community is still welcome to contribute on the Pi Network forum. The committee then uses the input from the community members to reach a final conclusion.
Mainnet and Testnet Systems
Pi Network began as a study project and began operations in beta in 2018. About two years later, the Testnet was introduced, enabling Pi Network developers to test certain features before to their mainnet deployment.
In the latter quarter of 2021, Pi Network finally released its mainnet after considerable anticipation. Pioneers may use the mainnet as a platform to set up a suitable wallet, transfer their mined Pi cryptocurrency to it, and carry out peer-to-peer transactions.
To find out how to transfer your Pi money and set up a mainnet wallet, watch this video guide.
A KYC verification procedure and a set of requirements are part of the mainnet migration, which enables users to own and manage a legitimate wallet. Pioneers' Pi will not be moved to the mainnet and won't be taken into consideration for determining the basic mining rate of the Pi Network system if they take longer than six months to complete their KYC verification. This indicates that other certified Pioneers will reallocate their Pi for mining within the same year.
The initiative has been accused of total centralization, and the mandatory KYC is still a contentious issue.
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Pi Network: Is It a Fraud?
It's likely that whatever interest you may have had in Pi Network will be stifled by claims made in opposition to the worth of Pi coins and doubts about the project's legality.
This is mostly because of the mainnet's delay and the Pi cryptocurrency's launch on exchanges.
The difficulty of users to transfer their earned Pi coins and the prevailing opinion about mobile mining led to the labeling of Pi Network as a "high-level" marketing plan and the eventual prediction that it would be a fraud. These claims were reinforced by the Pi Network community's ongoing expansion and the hold-up in listing the cryptocurrency that is produced on exchanges.
With their latest innovations, the Pi crypto team is seeking to disprove this. Users may now spend their Pi cryptocurrency thanks to the mainnet's debut, and it's claimed that other shops will take Pi coin payments.
It is said that PiChain International is being created to enable retailers to set up shop and use Pi coins as payment. Though it's still early, social media posts indicate the marketplace is being actively created and is almost ready for launch.
What is the Pi Network's PI worth?
Huobi Global said on December 26, 2022, that after Pi's impending open mainnet debut, they will be evaluating the cryptocurrency for listing. Pi was launched on Huobi and a few other exchanges a few days later, on December 29. It reached its peak price of $307.49 on December 30.
Please take notice that prices shown on certain exchanges are for IOUs, which may not be transferable between exchanges due to the mainnet's recent introduction. The current offerings vary in price from $4 to $89. as of the time of writing.
While working with these conjectures, investors should try to do their own study and act cautiously.
In a statement, the Pi Core Team said that Pi Network has not been associated with any alleged listing of Pi or any associated tokens, and they are asking for the removal of these exchange listings.
Last Words
The major question still remains about the viability and worth of the Pi cryptocurrency.
Though the project has managed to create a community and make some believable technical advancements over the last four years, its reputation remains uncertain.
Pi Network offers a clear explanation of cryptocurrency mining, which is important given the complex computational protocols involved. The platform has been well received by enthusiasts who think that mining on a mobile device can earn cryptocurrency with little effort. However, there is still uncertainty about Pi Network's ability to live up to expectations.
The bulk of the bitcoin community continues to have reservations about Pi Network's motives and is skeptical of the reliability of its mobile mining services. These opinions haven't altered all that much despite the mainnet's introduction and the significant advancements and adoptions that the Pi community is seeing; as of this writing, the Pi currency is still unlisted on exchanges and cannot be sold.
Just as with any other cryptocurrency endeavor, investors are encouraged to proceed with care. Investments in cryptocurrencies are still fraught with danger, and Pi coin is no exception.
