12/01/2023
PI NETWORK CRYPTOCURRENCY (MINING MADE EASY
Over the years, blockchain innovation has reached new heights, with the mining process becoming easier and less time-consuming.
The Pi cryptocurrency is a crypto initiative that claims to provide users with a new currency with all the advantages of bitcoin (BTC) while avoiding its pitfalls.
In this article, we’ll look at this unusual cryptocurrency and find out just what is Pi Network.
What is Pi Network?
The Pi Network was established by Stanford University academics Nicolas Kokkalis and Chengdiao Fan. They started working on it in 2018 to create digital money for everyone. On 14 March 2019, they published a whitepaper and released the Pi Network app.
The project promises to be environmentally sustainable, which might help attract climate-conscious investors. It may be especially effective since the crypto market has often been reprimanded for its substantial energy consumption due to energy-intensive procedures like proof-of-work (PoW), which degrades the environment.
The Pi Network app is used to mine Pi, and the mining procedure needs users to hit a button on their phone every 24 hours. Pi mining is technically not crypto mining since no mining is taking place.
Users are not confirming transactions at this time, at least not yet. In actuality, individuals get Pi tokens for accessing the application once per day and demonstrating that they are not a robot.
Users must get an invitation code from a member to join the app. Pi Network has a referral system in which users earn extra money dependent on how many others register using their invitation code.
According to the whitepaper for the Pi Network, the native cryptocurrency will not be introduced until phase four of the project, when the Pi Network mainnet is launched. Developers have not provided any hints on a timeframe.
Myron Jobson, personal finance campaigner of Interactive Investor, told UK newspaper The Sun: “It is difficult to see where the value is for the users… Users hang on to it in hope that it will one day be worth something.”
How does Pi Network work?
Pi Network differs from many other cryptocurrencies in that it employs a proprietary mechanism known as the Stellar Consensus Protocol, which enables users to receive benefits for their participation in the network.
The Pi ecosystem is built on a revolutionary technique known as the Federated Byzantine Agreement (FBA), which enables a set of computers to reach an agreement without needing a central authority.
The SCP is intended to be more secure, scalable, and quick than existing schemes such as Proof-of-Work (PoW) and Proof-of-Stake (PoS).
The Stellar Consensus Protocol employs a merit-based mechanism that encourages participants to contribute to the network by validating transactions and blocks. The more users one adds to the Pi ecosystem, the more incentives one gets.
On Pi, users may play one of four roles:
Pioneer: Miners who mine Pi by tapping the lightning button. There were more than 35 million Pioneers, as of 5 January 2023.
Contributor: A participant who provides a list of trustworthy users to the network in exchange for an incentive.
Ambassadors: Participants who promote new users to the network using their referral code receive a bonus.
Nodes: Participants using the Pi node software on their home computers.
According to the project, when it was launched, the basic mining rate was π1.6 per hour, which was reduced to π0.8 after 100,000 users were added. When one million people began using the app, the reward decreased to π0.4 per hour, and then it was reduced to π0.2 per hour once its user base surpassed 10 million. The benefits will continue to diminish until they hit zero when the network reaches one billion
