Pi Network is the most talked about topic at virtual currency exchanges. Pi Network is currently attracting the attention of the trading community around the world. The value of the Pi Network coin is the most talked about topic in trading sessions. So what is Pi Network? Is Pi a scam project? Crypto Insights will answer in detail in the article below!
What is Pi Network?
Pi Network (PI Coin) is the world’s first cryptocurrency that can be mined on mobile phones. The popularity of this coin in the world today is unbelievable.
The Pi Network whitepaper states: “As the world becomes increasingly digital, cryptocurrency is a natural next step in the evolution of money. Pi is the first digital currency available to everyday people, representing a huge step forward in worldwide crypto adoption”.
- Pi Network’s Mission: Build a cryptocurrency and smart contract platform that is secure and operated by everyday people.
- Pi Network Vision: Build the world’s most comprehensive peer-to-peer marketplace, powered by Pi, the world’s most widely used cryptocurrency
How does Pi Network work?
The Pi Network app is about as straightforward as it gets. It has a lightning button that you tap to mine Pi. This also starts a 24-hour countdown, and, when it ends, you need to check in and tap the button again to continue mining. You don’t need to leave the app open to mine, so all it takes is opening the app and tapping the button every 24 hours.
Your hourly mining rate is determined by when you signed up. Earlier members earn at a higher rate than those who came after. You can boost your mining rate by inviting new users or building a security circle.
There are four roles Pi users can play as Pi miners:
- Pioneer: A user of the Pi mobile app who is simply confirming that they are not a “robot” daily. This user validates their presence every time they sign in to the app. They can also open the app to request transactions (e.g: make a payment in Pi to another Pioneer)
- Contributor: A user of the Pi mobile app who is contributing by providing a list of pioneers he or she knows and trusts. In aggregate, Pi contributors will build a global trust graph.
- Ambassador: A user of the Pi mobile app who is introducing other users into the Pi network.
- Node: A user who is a pioneer, a contributor using the Pi mobile app, and is also running the Pi node software on their desktop or laptop computer. The Pi node software is the software that runs the core SCP algorithm, taking into account the trust graph information provided by the Contributors.
A user can play more than one of the above roles. All roles are necessary, thus all roles are rewarded with newly minted Pi daily as long as they participated and contributed during that given day. The loose definition of a “miner” is a user who receives newly minted currency as a reward for contributions, all four roles are considered to be Pi miners.
Who are the founders of Pi Network?
The three core faces of the Pi development team are Dr. Nicolas Kokkalis – Technical Leader, Dr. Chengdiao Fan – Product Owner and Vincent McPhillip – Pi Network Community Leader.
Nicolas Kokkalis is considered the “soul” of Pi Network. He is a Greek professor teaching at Stanford University (USA), specializing in computer science and blockchain technology. He is also the founder of the online gaming platform Gameyola which won the Facebook Foundation Award in 2009. Before the advent of blockchain and Ethereum (ETH), he wrote a thesis on the topic of Smart Contracts on cryptocurrencies. Vitalik Buterin – the creator of the virtual currency ETH is a student of Nicolas Kokkalis.
Besides professional activities, Nicolas Kokkalis is also CTO of StartX – a fund to support Stanford’s students to start their businesses. Since its establishment in 2011, StartX has helped 1,300 successful startups, including more than 700 unicorns such as Branch, Lime, Life360, Patreon, Poynt, and Kodiak Sciences…
Besides Professor Nicolas Kokkalis in charge of engineering, it is impossible not to mention Dr. Chengdiao Fan majoring in Anthropology at Stanford University. Ms. Chengdiao Fan focuses on human-computer interaction and social computing, specifically how we must use technology to positively influence human behavior and society. She also founded a startup and built an email production platform that extends conversations through community service.
Mr. Vincent McPhillip – Pi Network community leader is a member of Stanford Blockchain Research Center. After graduating with a bachelor’s degree in Political Science from Yale University, Vincent McPhillip did not follow the path of Wall Street banking but joined the nonprofit Bridgespan to deploy hundreds of millions of dollars for education and development. workforce for communities across the United States.
Coming from different countries, the trio of founders of Pi Network represents ethnic integration and all have the same goal of using Pi so that global residents can participate in the crypto world.
The Pi Economic Model
Pi, on the other hand, seeks to strike a balance between creating a sense of scarcity for Pi, while still ensuring that a large amount does not accumulate into a very small number of hands. Pi’s team wants to make sure our users mine more Pi as they make contributions to the network. Pi’s goal is to build an economic model that is sophisticated enough to achieve and balance these priorities while remaining intuitive enough for people to use.
Pi’s economic model design requirements:
- Simple: Build an intuitive and transparent model
- Fair distribution: Give a critical mass of the world’s population access to Pi
- Scarcity: Create a sense of scarcity to sustain Pi’s price over time
- Meritocratic mining: Reward contributions to build and sustain the network
What makes Pi becomes unique?
Pi Network is like a combination of a digital currency, an app, and a multi-level marketing (MLM) scheme.
Pi gave hope that mobile mining would be possible when other mobile mining apps failed. Another thing that clarifies why it’s possible is the type of consensus algorithm Pi uses – the Federal Byzantine Agreement (FBA) protocol, which has proven to be very effective for two main reasons:
- It consumes much less computing power, which makes it much lighter, faster, and easier to handle for devices with lower CPU power.
- Its energy consumption requirements are significantly lower and more environmentally friendly, according to a study conducted by Bournemouth University in the UK.
Pi’s main hook is its mobile mining capability. Most miners employ specialized equipment because other cryptocurrencies that rely on mining, most notably Bitcoin (CRYPTO:BTC), need a lot more computing power.
The Pi Network app allows you to mine pi, and all it takes to do so is to hit a button on your phone once every 24 hours. Since there isn’t any mining taking on, it isn’t strictly crypto mining. For the time being, you are not checking the validity of transactions. You get PI coin vouchers for logging into the program once per day and demonstrating that you are not a robot.
You require an invitation code from a member to register for the app. With the referral program used by Pi Network, you can increase your coin rewards by increasing the number of users that register using your invitation code. The program contains a copy of your Pi. It cannot be sold, withdrawn, or traded for another cryptocurrency. The Pi Network website states that you will be able to perform all of that in the mainnet’s third phase of development, there is no set launch date.
Is Pi Network a scam project?
While Bitcoin players mine individually, Pi allows them to invite more participants, thereby expanding the mining capacity. Specifically, when the player initially gives another player’s code, when the new player mines Pi, the original player will receive an additional amount of money in addition to the specified amount of Pi in a day.
According to experts, this form is like multi-level marketing. Because it’s like direct selling, offering potential incremental benefits to the original user. The original player recruits new people to his team, and when the new player makes a sale, the original player will receive a corresponding commission.
Many Pi mining players still think that if they lose money, they will stop playing, they do not lose anything. But the worrying thing here is the disclosure of personal information. And players should be careful when trading Pi on the black market because these transactions bring a lot of trouble. However, it all stops at the analysis based on the data obtained by financial experts. There are currently no official accusations that the Pi Network is a scam, except to warn players to be careful in Pi transactions.