Cryptocurrencies have been around since 2008, and they’ve now entered the mainstream. However, the process of mining or acquiring crypto has never been particularly accessible to the ordinary crypto enthusiast. To be a miner, one needs a low-cost power source, high-powered computers, mining software, and even a mining membership.
That’s why a group of Stanford graduates founded the Pi Network in 2019. Along with its Pi coin, it aims to literally put the means of mining directly in the hands of users. With Pi, one can mine coins on their smartphones for as little as 5 minutes a
Today, Pi has over 20 million engaged users and counting. Yet two years into its existence, it’s lying relatively low on the crypto radar. This begs a few questions: what exactly is Pi? How does it differ from regular crypto? And, more importantly — is it more than just a passing fad? We aim to answer these questions for you below.
What is Pi?
Despite the thousands of existing crypto projects out there today, Pi is one of the few that’s attracted the attention of both crypto enthusiasts and people outside the crypto community. As mentioned earlier, this is largely because it removes barriers to access through smartphone mining. FXCM explains in its guide to Pi that the network uses a simple consensus method where smartphone users vouch for each other as being trustworthy. This is known as the stellar consensus protocol (SCP). To get started, one simply needs to download the Pi app from Google Play Store or Apple App Store. From here, they can create an account and activate the app once a day to mine Pi coins. The Pi network has multiple processes in place that limit accounts to one device per user while blocking access to bots and fake accounts.
How does it differ from regular crypto?
Pi aims to solve more than just accessibility to crypto mining. It also tackles the issue of power consumption. In our guide to Bitcoin mining, we explained that rewards for mining Bitcoin alone are halved for every 210,000 blocks that are mined — which means that more energy must be expended to unlock more rewards. Bitcoin transactions also need to be verified through a certain amount of mining, which is referred to as the proof-of-work protocol. As a result, Bitcoin mining is said to consume more energy than the entire country of Argentina. Meanwhile, Pi’s SCP protocol is much less resource-intensive because it doesn’t require such extensive consensus algorithms. It also allows less powerful devices like smartphones to be used in mining.
Is it here to stay?
Though it’s fairly new to the scene, Pi has managed to stir up heated discussions within crypto circles. Some points of interest include the fact that the Pi coin is currently not listed on any exchange, that it doesn’t require any starting money, and that it encourages a referral system among users — much like a pyramid scheme. However, it’s important to note that Pi is a fairly young project that doesn’t aim to give out free money, but instead works to perfect its protocols and grow its collective network. It’s still in its second stage out of a 3-phase roadmap, with the end result being the network going public. It consequently has as much potential as other crypto projects — like Safemoon — in earning a high valuation once it does so. This is especially true given its strong user base. For now, it looks like Pi is here to stay — and spectators can content themselves with watching the progress of this promising network moving forward.
The post The Pi Network: Here To Stay Or Passing Fad? first appeared on BTC Wires.