Pi Network (PI) Is a Unique Cryptocurrency Project That Aims to Make Digital Currency Mining Accessible to Everyone

Pi Network is a cryptocurrency project that aims to make digital currency mining accessible to everyone. The project was created by a team of Stanford graduates

Pi Network is a unique cryptocurrency project that aims to make digital currency mining accessible to everyone. The project was created by a team of Stanford graduates to provide a decentralized, user-friendly digital currency for everyday transactions.

In this guide, we will cover what Pi Network is, how it works, and how to mine Pi coins. We will also discuss whether Pi Network is legit or a scam and its future potential.

What Is Pi Network?

Pi Network is a cryptocurrency project that lets you mine Pi coins directly from your mobile device without using significant energy. It launched on March 14, 2019, and was created by Stanford graduates Dr. Nicolas Kokkalis and Dr. Chengdiao Fan. It lets you mine Pi using a user-friendly mobile app without draining your battery.

Pi Network uses a unique mining mechanism called Stellar Consensus Protocol (SCP) instead of energy-intensive Proof-of-Work (PoW) algorithms. It allows you to mine Pi by contributing to network security through a trust-based system. You form “Security Circles” by adding trusted members, helping to build a global trust graph. This system secures the ledger without draining your device’s resources.

Pi Network’s Philosophy: Building a Community

Pi Network’s philosophy centers on establishing a decentralized and open digital currency driven by its community. The network values accessibility, as any smartphone owner can mine Pi without the need for costly hardware or high energy consumption. 

The Pi Network has become one of the biggest crypto communities, with more than 60 million active users. These users, referred to as Pioneers, contribute actively to the network by mining Pi, validating transactions, and growing the network by inviting members they trust. The Security Circle mechanism is also instrumental in ensuring a trustworthy network since every user verifies others they trust, and thus a decentralized web of trust is formed. You can check out the Pi network whitepaper for more details.

How Does Pi Network Work?

Pi Network works as a decentralized cryptocurrency that allows mining through mobile devices without consuming significant energy. It uses the Stellar Consensus Protocol (SCP) instead of traditional Proof-of-Work (PoW).

The platform uses SCP, which relies on a Federated Byzantine Agreement (FBA) model. Transactions are verified by distributed nodes without requiring massive computational power. The system ensures secure, fast, and scalable transactions while preventing fraud.

The Mining Mechanism

Pi mining does not involve solving complex mathematical problems like Bitcoin. Instead, users contribute to network security by verifying trusted members through Security Circles. Each participant adds up to five trusted individuals, forming a trust-based security system. This decentralized approach ensures transaction validation without centralized control.

Mining Pi requires opening the Pi Network app daily and tapping the mining button. The system does not run in the background or drain battery life. Mining rates decrease over time based on network growth, with a halving mechanism to control coin supply. The initial base rate was 3.1415926 Pi/hour, which has been reduced multiple times as more users join.

Pi Network Roles

Pi Network has four key roles that contribute to its security, decentralization, and growth. Each role plays a specific function in maintaining the network and increasing user engagement.

Benefits Of Using Pi Network

Challenges And Risks To Consider

What Is Pi Coin?

Pi Coin is the native cryptocurrency of Pi Network, a blockchain project that allows users to mine digital currency on their smartphones. Pi Coin has no fixed market value since it remains in an enclosed mainnet, preventing external trading. 

The total supply is capped at 100 billion coins, with 80% allocated to users and 20% to the core team. Pi Coin is designed for peer-to-peer transactions, decentralized applications, and online commerce.

Pi Network’s mining rate has undergone several halvings as the network has grown. Initially, the Pi Network mining rate halves when the number of engaged Pioneers reaches milestones such as 1,000, 10,000, 100,000, 1 million, and 10 million users. This pattern was supposed to continue until the network hit 1 billion users, at which point the mining rate would reach zero – no more new coins from mining.

However, up until March 1, 2022, that 10x growth halving rule was in place. But once the network entered the “Enclosed Mainnet” phase in December 2021 (a step toward the full launch), the team adjusted the system. They didn’t stick to the strict “every 10x users” rule. Instead, starting March 14, 2022, they rolled out a new “dynamic base mining rate”.

This change ensures that Pioneer mining rewards align with the total supply limit of 65 billion Pi allocated for mining rewards. Generally, the mining rate decreases month over month due to the supply limit