Blockchain Pi Cryptocurrency

Pi cryptocurrency is a cryptocurrency that has gained a lot of popularity recently because it can be mined on mobile phones. Unlike most cryptocurrencies (like Bitcoin) which require energy-intensive, highly expensive and high-tech computers to mine a single coin, the process to mine a Pi crypto can take place on your own mobile phone!

The Pi Network

The Pi Network is the name of a digital currency project with the agenda to allow accessible crypto mining for everyday users. It was developed by a team of graduates from the prestigious Stanford University and it allows users to mine coins using its mobile phone app and validate transactions.

Working

The Pi network does not rely on proof of work for transaction verification (unlike Bitcoin), it relies on an algorithm based on the Stellar Consensus Protocol (SCP). Under this protocol, all participant nodes of the Pi network form security groups of 3-5 trusted people. These groups build a global trust network and only trusted nodes are allowed to approve the transactions on the shared ledger, thereby preventing fraudulent transactions.

History of Pi Cryptocurrency

The project was launched in 2019 on Pi day, i.e. 14 March with a free Pi mining app. After that, the app rapidly gained a lot of active users. Advertisements started to finance the project in May 2020. On 29th December, its Pi mainnet was finally launched.

About the Pi coin

The Pi coin, PI, is the cryptocurrency running on the Pi network. It follows a lot of methods followed by popular cryptocurrencies like Ethereum and Bitcoin but the reason for its popularity is that everyday users can actually mine it from their phones!

Pi coin price prediction for 2022–2025

All cryptocurrencies usually start with a very low value. Popular crypto data providers CoinMarketCap and forecasting website Wallet Investor list a current value of $0.007077 for a Pi coin. The latter predicts the value to reach $0.0132 in March 2022.

However, it can also fall. One must keep in mind that cryptocurrency markets are in an extremely volatile stage and predictions can prove to be inaccurate in an uncertain political scenario such as right now.

It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts can and do get their predictions wrong.

Future Scope of Pi Cryptocurrency

Crypto enthusiasts wanting to buy the Pi coin will have to wait for long because the Pi coin is not listed on any exchanges yet. You can however, mine your own coins to avail them. They cannot be transferred either to prevent fake accounts from accumulating coins. Pi coins are also not available for trade on any cryptocurrency exchange or platform either and thus, the price of PI is yet to be established.

However, now holders have access to their private and public wallet keys and hence, they can use the coins to buy products and/or services on Pi’s marketplace. The Pi mining app also acts as a digital wallet linked to the user’s mobile number or Facebook account but external wallets are also allowed to hold the Pi coins.

Is the Pi Network a Ponzi Scheme?

There has been a growing concern whether the Pi coin is a scam or not. Although since users have not invested any money directly into the coin, it doesn’t seem like a scam at all. In fact, it just might be too early to tell. The suspicions have risen because the Pi model is similar to a Multi-level-marketing(MLM) scheme, more notoriously referred to as the Pyramid Scheme.

A pyramid scheme allows participants to be rewarded whenever they bring new people to the system, to encourage more people to join the scheme. The Pi network requires a user to refer to others to be eligible to perform mining activities on the network. Hence, it quite resembles an MLM scheme.

Other reasons for the controversy are that the users are submitting their data but receive no tangible service in return, the founders have already profited from the platform using advertisement, and the final reason is that the Pi mainnent does not have a clear launchdate yet.

Explanation of Cryptocurrency Mining

Mining is the process through which miners create new blocks. A very crucial component of a blockchain is not that every block has its own nonce and hash, but also that it has reference to the hash of the previous block in the chain. This is why mining is a formidable task, especially on long chains.

Is crypto mining still profitable?

If you are new to crypto mining, you should be aware that mining coins is extremely difficult. Different currencies necessitate distinct mining techniques but almost all of them require high-level mining and software equipment.

Process of Pi Network Mining

Contrary to Bitcoin mining which demands significant expenditures and power inputs making it extremely harmful to the environment, the developers of the Pi Network crypto developed better mining processes. The main idea was to create a user-friendly network to form chains and underground mining coins at a lower cost and with little energy consumption while using a mobile app. The PI Network mobile app is simple to use.

Step-by-Step Guide to Pi Network (PI) Mining

To mine Pi coins, simply follow these steps :

1: Download the Pi network app.

2: Sign up using your Facebook account or phone number.

3: Create a password.

4: Complete your personal profile.

5: Type in the invitation code. You can find one by :

• Requesting an existing Pi Network user to share their code with you.
• Search the internet for leads

6: You have successfully signed up. Then, on the right, tap the lightning icon.

7: Take a quick tour of the Pi mining app. You are now ready to mine PI. Every user receives one PI after signing up.

To prevent the app from flagging you as a bot you must visit the app daily. The cryptocurrency will be credited to your account within 24 hours, after which you must reactivate Pi Network mining. Turn on the notifications if you find it difficult to remember everything.

The app also hosts a ranking system to encourage more participation, it is as follows:

• Pioneer: All miners begin as Pioneer
• Contributor: Only when a miner works continuously for 3 days can they achieve the status of a contributor
• Ambassador: This rank is awarded to users who invite other Pi Network participants to join.
• Participants: People who have connected additional hardware to the network are called nodes.

What Is the Function of Pi Coins?

As of right now, they do not serve any function, they are worthless and not listed on any exchange hence they cannot be traded. There is no Pi wallet in existence yet, so the coins can’t be withdrawn from the app either. The future scope of the Pi network is that once the mainnet will be launched the app itself will become a wallet.

What Is Pi Coin Price?

The estimated price for a single Pi Coin is about $0.0007 at the moment. However, since the coin is still not available for purchase, we can’t say exactly how valuable it is. With that said, there are over 29 million active PiCoin miners right now, and if that number keeps growing in the future, Pi Coin will surely find itself on the largest crypto exchange platforms such as Binance, Crypto.com, PancakeSwap, and others.

Once the Pi network reaches the third, and final phase, PiCoin is expected to reach crypto markets as many other digital coins did in the past.

What Is the Pi Network Security Circle?

Most cryptocurrencies employ either the proof of work or the proof of stake consensus algorithm to ease decision making. The Pi network on the other hand uses a security circle which has a group of 3-5 users trusting one another to not engage in fraud. As of right now, there is no exact explanation on how the network would establish the needed trust between the users or what measures it will take in case the trust is violated.

PI Cryptocurrency remains in pre-release mode

As Phase 3 has now launched the app has transformed into a wallet, coin holders will be able to take full control of their private and public wallet keys, and use the coin to buy products and services on Pi’s peer-to-peer marketplace. Without the keys, users cannot transfer or spend the currency they hold.

The PI mining app acts as a cryptocurrency wallet, linked to a user’s mobile phone number or Facebook account. As with other public blockchains, the Pi blockchain will allow external wallets to hold Pi coins and submit transactions directly to the blockchain. However, unlike other blockchains, its developers have not yet released its source code.

Early adopters are accumulating Pi crypto in anticipation that the price will rise sharply after Phase 3 goes live. Although the coin’s mining rate has been reduced by halving, users can increase their mining rate by connecting with other active miners. New users can only join the Pi Network if they have a referral code from another user.

The project’s developers claim that security on the Pi Network is enhanced by personal networks, encouraging users to bring in friends and family – which is prompting scepticism that it could be a multi-level marketing or pyramid scheme. However, it is worth noting that users can only earn coins from their own direct networks and not from their connections’ networks, as with an MLM scheme.

The KYC App Pilot and Block Explorer are some of the recent tech updates offered by the app. Having been tested with community moderators, the KYC App Pilot was deployed “on a limited basis”. This is to start the process of verifying Pioneers and to improve the app’s usability and machine automation. The Pi Block Explorer, which helps Pioneers see transaction history and explore transaction data such as sender, receiver, and amount, was also deployed.

Also updated is Pi Wallet where the company has been creating push notifications to alert Pioneers when they receive a payment on the blockchain and fixing a bug for Android users who could not see their wallet passphrase.

The company added that the Brainstorm app now features a redesigned app displaying Hackathon winners, showcasing an improved UI, improved tag functionality for users to create custom tags on their projects and a feature that allows projects to upload logos to their brainstorm page.

Frequently Asked Questions on Pi Cryptocurrency

Q1. Will Pi Cryptocurrency be valuable?

The estimated price for a single PiCoin is about $0.0007 at the moment. However, since the coin is still not available for purchase, we can’t say exactly how valuable it is. With that said, there are over 29 million active PiCoin miners right now. If this number keeps growing in the future, PiCoin will surely find itself on the largest crypto exchange platforms such as Binance, Crypto.com, PancakeSwap, and others. Once the Pi network reaches the third, and final phase, PiCoin is expected to reach crypto markets as many other digital coins did in the past.

Q2. How many Raspberry Pi users are there?

The Pi Network, which was launched on March 14, 2019, now has over 23 million users.

Conclusion

In this article, we learnt about the Pi cryptocurrency which operates on the Pi network. We discussed the history and origin of the project, learnt about the Pi coin and future price predictions. We also discussed its future scope.