The cryptocurrency global is moving faster than ever, with modern coins and tokens being introduced daily. This can be quite jumble, specially to the average investor. It can besides be difficult to tell whether new cryptocurrency projects are merely ways of making money, or fair scams. One of these is Pi Network.
With 33 million “ Pioneers ” spanning the ball, the Pi Network is nothing less than a wildfire. active users of the Pi Network have grown from 1,000 to millions in a mere three years. Just what is Pi Network, and why is it so popular ? One main reason is that unlike traditional blockchains such as Bitcoin, Pi tokens can be mined with a single click. Yet there are some uncertainties surrounding the coin. For one, the Pi coin still has no value — as it hasn ’ metric ton however been listed on any exchange. Its mannequin is besides undeniably exchangeable to multi-level selling ( MLM ) and pyramid schemes. Want to understand more about the workings of this mysterious network ? then read on to find out more about it and decide for yourself if it ’ south legitimate or a victimize .
What Is Pi Network?
The Pi Network is designed to be a revolutionary decentralized network in which its currency is mined on smartphones, rather than energy-intensive ASICs or GPUs. Founded by Stanford researchers Nicolas Kokkalis and Chengdiao Fan, Pi Network strives to be a more effective and accessible manner of conducting transactions. As compared to traditionally established networks like Bitcoin, which require energy intensive machines, the Pi Network is easy to operate and claims to be energy effective. It ’ second still in its initial stages of development, but the team intends to make it the go-to currentness for transactions. It should be noted that the Pi Network ’ sulfur coin is unlike from the Pi Network DeFi nominal. The Pi Network DeFi aims to smoothen capital flow by allowing people to lend and borrow freely around the global. It runs on the Binance ( BNB ) blockchain, and is presently listed on a few DEXs, such as PancakeSwap. The Pi Network is a new crypto asset based on blockchain technology. It has garnered a wide drug user base in the initial phase of its plunge. Pi Network is different from many other cryptocurrencies because it uses a singular algorithm known as stellar Consensus Protocol that allows users to earn rewards for participating in the net .
Stellar Consensus Protocol
The Stellar Consensus Protocol provides a meritocratic-based algorithm that incentivizes users to contribute to the network by verifying transactions and blocks. This means the sum of Pi coins they earn is proportional to the campaign they put in. The more users contribute to the Pi ecosystem, the more rewards they earn. This simpleton model enables people to earn tokens with one pawl of a push button on their mobile earphone . reference : Minepi.com The innovative Stellar Consensus Protocol ( SCP ) has the electric potential to revolutionize the way we achieve consensus in distribute systems. The Pi ecosystem is based on a novel approach called the F ederated Byzantine Agreement ( FBA ), which allows a network of computers to come to a consensus without needing a central assurance. The SCP is designed to be batten, scalable, and faster than other protocols like proof of bring ( PoW ) and proof of bet on ( PoS ) .
Differences Between PoW and SCP
The differences between validation of ferment ( PoW ) and Stellar Consensus Protocol ( SCP ) are explained below. PoW is the most well-known and widely implemented consensus algorithm, used by celebrated cryptocurrencies like Bitcoin and the current version of Ethereum. It ’ s a mechanism that rewards miners for solving a complex mathematical problem in a block. The first node that solves the problem and validates the transaction is rewarded with cryptocurrency. While it is a identical impregnable mechanism, as the blockchain expands it has become increasingly department of energy intensive. SCP is energy efficient in comparison to PoW, as rewards can be easily mined on smartphones at abject energy monetary value. furthermore, unlike PoW, all contributors have distributed rewards according to the amount of campaign they put to validate transactions. This makes for an even more decentralized protocol, as bombastic organizations will not form mine pools to ensure they get rewarded .
Pi Network: How it Works
The SCP algorithm is the kernel of the Pi Network protocol and manages the network regional anatomy. It is a distribute algorithm that runs on each node of the net. The algorithm is designed to converge in a finite number of steps, careless of the network size or the count of nodes. This makes the Pi network secure, decentralized and energy efficient. This peer-to-peer network allows users to earn rewards by participating in its consensus serve through the simple tap of a button. The tokens mined go into the Pi app, which besides functions as a crypto wallet. It ’ south presently in its beta phase, and is open to anyone who wants to join and help grow this enclose network that will finally move to an open network.
source : minepi.com here ’ s how you can be a region of the Pi Network :
- Potential participants need to submit their “Know Your Customer” (KYC) information, such as copies of their government-issued identification, before they can trade on future apps released on the Pi Network.
- Signed-up members just need to click a lightning button on the Pi Network app to start mining Pi. After 24 hours, miners need to tap the button again to continue mining Pi coins.
- Users can have four roles on Pi:
- Pioneer: Miners who tap the lightning button to mine Pi.
- Contributor: Participants who provide a list of trusted users to the network, for which they’re rewarded with an incentive.
- Ambassador: Participants who introduce new users to the network through their referral code and earn a bonus.
- Node: Participants that run the Pi node software on their personal computers.
- Users have leverage to hold multiple roles at a single time to make the most of the Pi Network.
How Much Is the Pi Coin Worth?
The Pi coin is the native cryptocurrency of the Pi Network. It ’ s used to secure the network and power any decentralized applications ( DApps ) that run on it. presently, there international relations and security network ’ deoxythymidine monophosphate yet much purpose or prize in holding the nominal as it hasn ’ thyroxine been listed on any exchanges yet. The token ‘s utmost issue is based on the Bitcoin model of halving the mine advantage. While the Pi coin may not have any measure now, it could see exponential growth once it launches. This is because, like Bitcoin, the mine rate of Pi will be halved every four years. This will cause the supply of Pi to decrease over prison term, while the demand for it will increase. This could lead to dramatic Pi price increases .
Is the Pi Network Legit — Or a Scam?
available both as a Pi app and as a Pi browser, the network is gaining far-flung adoption in the crypto space. The Pi Network allows users to easily earn cryptocurrency by participating in its singular mining process. All you need is a mobile telephone and an internet connection. While the mine procedure does consume some of your telephone ‘s battery life, it ’ s not about deoxyadenosine monophosphate intensive as Bitcoin ’ sulfur mining. On paper, Pi Network seems like a promise project. The big question is whether or not the Pi Network is rightfully lawful. Afterall, crypto scams are platitude, due to the popularity of crypto as an investment .
Why Pi Network Could Be a Scam
While it may be besides early to conclude whether Pi Network is a victimize, there are some loss flags that concern people :
- Pi Network operates similar to a multi-level marketing (MLM) or pyramid scheme, in that participants are rewarded for inviting more participants to join.
- Although one of its self-stated goals is to be a utility-based system, the network currently provides no utility.
- Its white paper charts a plan for deployment of its open mainnet launch and coin listing, but hasn’t committed any dates so far.
- The users are the product, in the sense that they input value in the network by sharing their personal information without getting anything in return.
- The founders are already making profits through opt-in video ads, even though the coin is still not listed.
Why Pi Network Could Be Legit
The other english of the mint suggests a few key factors that make Pi Network seem lawful :
- The team behind the Pi blockchain is ostensibly highly experienced, and includes Stanford University graduates.
- Pi Network aims to have a strong community of users and backers, which increases the chance of success for the Pi coins.
- The network is actively building a strong developer community to create more valuable apps for their platform via a hackathon.
- The development team has successfully launched an enclosed mainnet and a Pi Wallet in December 2021, which highlights that they’re actively working on improving their blockchain.
- The Pi coin has no value, so there’s literally nothing for the network to scam — except people’s time and private information.
Pi Coin Price Prediction 2022–2025
It ’ sulfur unmanageable to do a Pi coin price prediction as it hasn ’ thymine been listed on any exchanges so far. however, some experts believe that the price of Pi Coins could be between $ 0.1 and $ 2 erstwhile in 2022 — once it ’ s been listed on major exchanges. By the end of 2023, the price of Pi Coins is expected to continue to increase to $ 5, as more use cases are developed. The Pi price prediction up till 2025 is highly affirmative, with their value forecasted to touch a milestone of $ 60. The independent rationality for Pi coin ‘s potential price addition is its limited issue. only a finite number of Pi coins will ever be created, which means that as the requirement for this currency grows, its price will continue to rise. additionally, the Pi coin is backed by a strong development team constantly working on improving the currentness. These advantages suggest that the Pi coin is probable to become democratic in the coming years, driving its price flush further. On the early hand, CoinMarketCap has indicated Pi coin ’ s status as an pathless list. It far highlights that it ’ randomness vital to DYOR ( do your own research ) before investing because of the controversies surrounding Pi Network. This suggests that it may be a bad investment with a correspondingly high gear chance of failure. There ’ s no deny that Pi Network price predictions are pure speculation. however, it does n’t mean one shouldn ’ t be inclined to invest in it. Since it ’ randomness free to mine Pi coins, if they get listed on major exchanges, all Pi miners will be able to reap moment profits. furthermore, its limited provision and the fact that it ’ second led by reputable Stanford graduates make it a very bright investment once it gets its wide establish.
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That said, again, it ‘s vital to DYOR before investing — as is the sheath with any altcoin investing .
On the surface, there are a set of advantages to the Pi Network. Its innovative combination of blockchain and peer-to-peer engineering enables it to be used by anyone, anywhere in the world. This decentralized network besides has no fees, and is faster and more energy efficient than traditionally operated blockchain systems. however, Pi mint presently has no value, and its creators are already profiting from the network. That said, investing in it for nowadays entirely costs you your time and your privacy, not money. indeed if you have the time —and wear ’ thyroxine mind revealing your personal information — you can choose to download the app and gain tokens with a simple chink .