What is Pi Network? – How Does Pi Network Work?
Do you also want to know what is Pi network? The Pi Network has recently made headlines in the cryptocurrency industry by providing a new, user-friendly method for anyone to mine pi digital currency using only their phone. You need a lot of power and expensive tools to mine Bitcoin and other popular coins. However, Pi Network enables users to mine Pi currency with a single swipe on their phone.
With over 55 million users globally and an eagerly anticipated mainnet launch on the horizon, Pi Network is positioning itself to become a formidable contender in the cryptocurrency industry.
In this article, we will discuss what is Pi Network, how it works, and the upcoming Mainnet launch. Also, we’ll address some of the most often asked queries, such as: Is Pi Network a scam? along with the eventual usage of Pi currencies.
What is Pi Coin (PI)?
Pi Coin (PI) is the official Pi digital currency of the Pi Network. This blockchain project wants to unlock mining for anyone with a phone and support a digital currency that can be used for everyday purchases. The cryptocurrency Pi development team markets the project as an option for Bitcoin mining, which is only done by big mining farms with specialized tools that most people can’t afford. The project hasn’t gone live, so there is a lot of disagreement about whether Pi is an actual coin or a fake.
Since the beginning of several hackathons in early 2023, people have been making games, decentralized finance (DeFi), and metaverse apps that can work in the Pi environment. The project says it has 55 million app users, which it calls “Pioneers,” who have been able to sign up for the mainnet and go through Know Your Customer (KYC) checks.
Key Takeaways
- Pi Crypto can be mined using a mobile device, making it available to many people. Mining more significant cryptocurrencies like Bitcoin has become too complex for individuals.
- The Pi Network aims to build an open community with many nodes.
- The network relies on its users to verify transactions and keep the record safe.
- The project is still in its early stages, and Pi network cryptocurrency is not yet available in any cryptocurrency market. Many people are interested in the idea, which means it could grow and be used in the future.
Who Created Pi Coin?
The website for the project says that a group made the coin of Stanford grads with experience in blockchain and social computing.
How Does Pi Coin Work?
Some of the first blockchains, like Bitcoin, used proof-of-work (PoW) methods to verify transactions and add new blocks. Miners are paid with new coins every time a block is mined. But Pi Coin Network does things differently. An early form of the Stellar Consensus Protocol (SCP) is used in the blockchain to run a program that verifies transactions.
The project has nothing to do with the Stellar blockchain, which is essential to remember. Pi first released a mobile mining app that lets users run nodes and make security groups with three to five people they trust. The goal is to create a world network that doesn’t let fake deals go through. Since then, the makers have added Pi Node software for computers that can be used with the mobile app.
Pi Coin Price History
Because the mainnet is private, Pi Coin is not sold by the public and does not have a price history on external platforms. People who own Pi Coins have long used unofficial IOUs to give the currency a suggested value. In early 2023, some price data websites started showing a Pi Coin price to keep up with the black market. However, these prices might not be correct when the coin goes on sale to the public.
The Framework of Pi Network
At the moment, Pi Network cryptocurrency does not have the legal standing to be listed on an exchange, which means that other cryptocurrencies cannot be used to buy it. The Pi Network has gone through three precise stages of growth.
Design, distribution, trust graph bootstrap
In March 2019, the first part of the Pi Network operation began. Compared to the problems expected on the main net, the creation process during this time was smooth.
All Pi coins users have mined will be included in the network via pre-mining when the main net launches. Everyone who mined Pi tokens during the test phase will get their coins back and be added to the primary net system through “pre-mining.” All user mining actions will likely be recorded as part of this process, and digital copies of the created coins will be added to the main net log.
Testnet
Using Node software, the Pi Network goes through many tests before the significant net starts. A testnet system is set up that looks like the main net but uses test Pi coins instead of real ones.
At first, only a small group of known users runs Node software on the testnet. More users are urged to join, though. The testnet and the Pi emulator work simultaneously, which lets them constantly compare and find errors.
Mainnet
The Pi Network will only move to the mainnet after the Node software has been thoroughly tested on the testnet. There will be a clear separation between verified, personally owned accounts and others.
The original network infrastructure will shut down upon mainnet launch, creating a self-sufficient system. An appointed committee will oversee the community’s active participation in upcoming initiatives.
How Does Pi Network Work?
Pi Network is different from other blockchains because it uses a transaction confirmation method based on the Stellar Consensus Protocol. In contrast to the proof-of-work approach, which requires a lot of computing power, Pi Network’s mining process can be started by a simple in-app action, which requires very little work from the user.
An individual user only has one account and node; all mining is done through the mobile app. The desktop node is a place to chat, watch videos, and keep an eye on the balance. Advertisements shown by the app make money for the people who make content, while users mine.
Creating your Pi Network Wallet
Access the Pi Browser:
Open the Pi Network mining app:
- Open the menu button in the upper left corner to use it.
- Choose”Pi Browser” from the menu that appears.
- Click”Sign in to Pi Browser.”
Download the Pi Browser App:
If you haven’t already, get the Pi Browser from the iOS App Store or the Google Play Store. This app is necessary to use Pi Network’s environment and keep track of your activities.
Generate your Wallet:
To get to “Wallet. pi,” open the Pi Browser and go to the Pi Directory. Ensure you finish the process by tapping “Generate Wallet” and not leaving the page. This is where your wallet and password will be made.
Secure your Passphrase:
To log in to your wallet, you need to know your password. Since Pi Network doesn’t keep it, you can’t get to your possessions if you lose it. For easy entry, use biometric features like Face ID or your fingerprint. However, these won’t follow you if you lose your phone.
Keep your Passphrase Private:
Do not tell anyone your password. The location of your wallet is your public key on the Pi blockchain. Share only your public Wallet address. You use this to get Pi or do other things with your wallet.
Navigating your Wallet Login:
After configuration, go back to the Pi Browser, choose “Pi Wallet,” and sign in using your passcode or fingerprint.
Receiving Pi:
Once in the Wallet interface, copy your public address and exchange it with others to get Pi. To send Pi, type in the address of the recipient’s wallet and the amount you want to send. Make sure you don’t send Pi to the wrong address. Transactions cost at least 0.01 Pi, which can change depending on how busy the network is.
Test Transactions:
Send Test-Pi, which has no real value, to get used to the Testnet wallet.
What do you do if your Pi Wallet gets hacked?
As interest in Pi coins has grown, so have scams and efforts to hack them. Let’s look at how to handle this:
Sending Pi coins to a Scammer:
You can’t get your money back if you send Pi to a scammer. This shows how important it is to be careful when making deals. Your wallet is safe, and you can keep getting coins from future transfers.
Shared your Passphrase:
If you gave your Passphrase or typed it into a sketchy website, do these things:
- Make a new wallet: To do this, open the Pi Browser, go to the wallet area, and create a new wallet. Make a safe copy of your new password.
- Update your wallet: In the Pi Network app, enter your password in the mainnet review to confirm your new wallet.
- Monitor your old wallet: Move any residual coins from your previous wallet to the new one before the fraudster can access them.
New Pi Network Roadmap
Several important milestones and roadmap releases have been made in the history of Pi Network. These have set the stage for the much-anticipated start date of the Pi Network Mainnet. Look more closely at these critical stages in Pi Network’s growth.
Phase 1: Design and Distribution:
- The Pi Network began with a phase where users could only join by request. This step set the stage for designing the network to make it safe and easy to use.
- The main goal was to get many people to use it while stopping fake users and bots from abusing the system.
Phase 2: Testnet and Mining:
- The network then moved on to the Testnet phase, where people could mine Pi coins. Even though these coins had no real value, they were there so users could get used to the mining process.
- Before the Mainnet launch, the Testnet phase was crucial for identifying and resolving any possible network problems.
Phase 3: Cross-App Integration:
The goal of this phase for Pi Network was to add the Pi coin to other apps, which would make it more useful. Adding the Pi Network to other apps made it more visible and helped get more people to use it.
Phase 4: Mainnet Launch (Expected possibly later in 2025):
Phase 4, which starts with the launch of the Pi Network Mainnet, is the most-anticipated step so far. From then on, Pi coins will stop being Testnet tokens and become real Pi coins with value. Users can send and receive Pi coins, which is exciting for Pi fans. Pi Network Price Predictions and News:
People are becoming more interested in how much Pi coins will be worth in the future as the start date for the Pi Network Mainnet gets closer. Many experts and fans have shared their opinions about the price of the Pi Network. It is essential to remember that crypto markets can be volatile, and it is hard to say what prices will do.
Future Developments:
The Pi Network team always strives to improve the platform. There will probably be more exciting news and changes as the project progresses. Anyone curious about this unique project needs to keep up with the latest Pi Network news.
How To Avoid Future Scams
Ensure you’re always on the official Pi Network page ending in “.com,” like wallet.pi.com. Stay away from fake sites with the same names.
Recovering your Passphrase
- Securing your Passphrase: First, make sure your password is safe. For ease of use, use your device’s biometric features. However, remember that these won’t help you get your password back.
- Accessing your Passphrase: You can see your PIN in the wallet’s settings if you’ve forgotten it. However, you can still get to your wallet using physical confirmation.
Recreating your Passphrase
When you make a new wallet, be careful if your Pi has been moved and is now linked to the mainnet. Take your wallet off the mainnet, create a new one, and then put it back on.
Migrating your Passphrase
Now that your new wallet is set up, use the movement tool to move Pi from the testnet to the mainnet.
What Makes Pi Unique?
Pi Network is different from other digital currencies because it lets people mine using a mobile app, which is a new way to do it. This method aims to make mining more accessible to everyone and to create a robust and open environment that its users back.
Benefits & Features of Pi Network
- User-friendly mining: It makes mining possible through a mobile app, lowering the barriers to entry.
- Community focus: Network protection and certification depend on the users who take part.
- Energy-efficiency: Utilizes a method for reaching an agreement that doesn’t need a lot of computing power.
- Growth potential: A lot of user attention shows that the technology could be widely used.
Is Pi Coin a Scam?
Many people are skeptical of the Pi Coin because it uses an unusual method, the mainnet has been delayed several times, and the coin can’t be traded on big platforms yet.
There was a story in Vietnam that the Department of Cybersecurity and High-Tech Crime Prevention had already started looking into Pi Network.
But there isn’t enough proof to say that it’s a scam. When getting involved with any coin project, studying and being careful is essential.
Pi Coin Pros and Cons
Pros
- You can mine with a smartphone.
- You don’t need expensive gear or a lot of power.
- There is a strong community and developer support.
- There is room for growth and adoption in the future.
Cons
- Can’t be traded on big platforms yet.
- Still in testing, with no set date for the mainnet start.
- Value and market acceptance in the future are uncertain.
Should Invest in Pi?
The Bitcoin community has a lot of different ideas about whether or not the Pi Network is a good bet. The worth and possible return on investment won’t be known until the project moves forward.
FAQs
Conclusion
By its very nature, the Pi Coin is a new way to think about cryptocurrencies since it allows mobile mining and is easy to use. It’s still unclear what the Pi Coin means or how much it’s worth. Still, the project could change how cryptocurrency is mined and make digital cash more accessible to everyone. However, as with any business, it is essential to be careful and keep up with how the project is going.