Pi Network is a unique cryptocurrency project that aims to make digital currency mining accessible to everyone. The project was created by a team of Stanford graduates to provide a decentralized, user-friendly digital currency for everyday transactions.
In this guide, we will cover what Pi Network is, how it works, and how to mine Pi coins. We will also discuss whether Pi Network is legit or a scam and its future potential.
What Is Pi Network?
Pi Network is a cryptocurrency project that lets you mine Pi coins directly from your mobile device without using significant energy. It launched on March 14, 2019, and was created by Stanford graduates Dr. Nicolas Kokkalis and Dr. Chengdiao Fan. It lets you mine Pi using a user-friendly mobile app without draining your battery.
Pi Network uses a unique mining mechanism called Stellar Consensus Protocol (SCP) instead of energy-intensive Proof-of-Work (PoW) algorithms. It allows you to mine Pi by contributing to network security through a trust-based system. You form “Security Circles” by adding trusted members, helping to build a global trust graph. This system secures the ledger without draining your device’s resources.
Pi Network’s Philosophy: Building a Community
Pi Network’s philosophy centers on establishing a decentralized and open digital currency driven by its community. The network values accessibility, as any smartphone owner can mine Pi without the need for costly hardware or high energy consumption.
The Pi Network has become one of the biggest crypto communities, with more than 60 million active users. These users, referred to as Pioneers, contribute actively to the network by mining Pi, validating transactions, and growing the network by inviting members they trust. The Security Circle mechanism is also instrumental in ensuring a trustworthy network since every user verifies others they trust, and thus a decentralized web of trust is formed. You can check out the Pi network whitepaper for more details.
How Does Pi Network Work?
Pi Network works as a decentralized cryptocurrency that allows mining through mobile devices without consuming significant energy. It uses the Stellar Consensus Protocol (SCP) instead of traditional Proof-of-Work (PoW).
The platform uses SCP, which relies on a Federated Byzantine Agreement (FBA) model. Transactions are verified by distributed nodes without requiring massive computational power. The system ensures secure, fast, and scalable transactions while preventing fraud.
The Mining Mechanism
Pi mining does not involve solving complex mathematical problems like Bitcoin. Instead, users contribute to network security by verifying trusted members through Security Circles. Each participant adds up to five trusted individuals, forming a trust-based security system. This decentralized approach ensures transaction validation without centralized control.
Mining Pi requires opening the Pi Network app daily and tapping the mining button. The system does not run in the background or drain battery life. Mining rates decrease over time based on network growth, with a halving mechanism to control coin supply. The initial base rate was 3.1415926 Pi/hour, which has been reduced multiple times as more users join.
Pi Network Roles
Pi Network has four key roles that contribute to its security, decentralization, and growth. Each role plays a specific function in maintaining the network and increasing user engagement.
- Pioneer: Pi Network allows Pioneers to mine Pi by simply opening the app and tapping the mining button every 24 hours. This role ensures active participation and helps expand the network. Pioneers do not need to keep their app open or use device resources while mining.
- Contributor: Pi Network enables Contributors to improve security by creating Security Circles. After mining for three days, a user can add trusted individuals to their Security Circle. These circles form a decentralized trust graph that enhances the security of Pi transactions. Each added member increases the mining rate, with a maximum boost of 100% for five members.
- Ambassador: Pi Network encourages Ambassadors to grow the network by inviting new users. Each invited person who actively mines Pi becomes part of the Ambassador’s Referral Team. The mining rate increases by 25% for every active team member mining at the same time. There is no limit to the number of people an Ambassador can invite.
- Node: Pi Network relies on Nodes to validate transactions and maintain the blockchain. Users who run the Pi Node software on their computers contribute to the network’s decentralization. Running a Node requires a stable internet connection and a reliable computer.
Benefits Of Using Pi Network
- Accessibility: You can mine Pi coins using a smartphone without the need for expensive hardware or technical expertise, making cryptocurrency mining available to a broader audience.
- Energy Efficiency: Pi Network employs the Stellar Consensus Protocol,
