Definition of Pi Network
This is a blockchain initiative that can be utilized directly on smartphones. Unlike conventional cryptos like Bitcoin, which need robust computers and significant amounts of energy to mine coins, Pi can be mined easily with only a tap.
One can simply tap the ‘Lightning’ button in the Pi Network mobile application once every 24 hours to earn new Pi Coins. Pi coin, Pi Network’s native crypto, can be mined in the application.
Despite several users generating Pi coins, the crypto’s future value remains unknown. The project is still in the testing stage, and while the founders have major plans for the coin, there is doubt as to whether it will ever have real functionality or value.
How Pi Network Functions
Despite mining Pi coins sounding simple, getting to the application can be challenging. To begin mining, a person requires an invitation code from an existing Pi Network member.
The referral system allows people to earn additional coins based on the number of members who sign up using their referral code.
The more users a person invites, the more the rewards.
Pi Network Roles
The roles that a person can take when they become part of the Pi Network include:
Pioneer: This primary role entails mining PI by tapping the ‘Lightning’ button every day.
Contributor: This role permits mining at a higher rate by completing three to five ‘Mining Sessions’ and offering a list of trusted pioneers to add to the ‘Security Circle.’
Node: In this role, a person runs the Pi node software on the computer, which is currently being tested to serve as an open-source validator for the community.
Ambassador: This role entails using a code to invite new users. One can get up to a 25% boost as a mining bonus for every person who signs up.
Users can hold several roles concurrently, making the most of Pi mining’s potential. The Pi mining rate per hour is based on when a person registered with the site.
Pi Network Consensus Algorithm
Pi Network utilizes a consensus mechanism founded on the Stellar Consensus Protocol. It allows users to utilize their mobile gadgets to participate, improving the convenience of the mining process.
The power-consensus mechanism comprises nodes that depend on network messages to agree on the transaction. In the Pi Network, ‘mining’ entails acquiring new currency from one’s contribution instead of the proof-of-work (PoW) mechanism.
Storing and Transferring Pi Coins
The mined Pi is stored in the application. As of last month, Pi Network users cannot move, sell, or exchange Pi coins for other cryptos.
The features are anticipated to be unveiled in the third stage with the Pi open mainnet unveiling, though the date is yet to be set.
Is PI Network Legit or a Scam?
Examples of major concerns regarding the Pi Network include:
Absence of transparency: The absence of a detailed white paper or technical documentation is considered a red flag. This is because it is difficult to establish how the network functions and how coins are utilized and distributed.
Pyramid scheme allegations: Pi Network is accused of running like a pyramid scheme because it motivates users to invite others and earn rewards for introducing new members.
Unlisted coin: As of last month, the Pi coin was not listed on any major crypto exchange platform, and users cannot trade Pi.
Pi Network’s Safety
Despite the Pi Network being considered a safe-to-utilize application, external audits to back this do not exist. The absence of comprehensive reviews evokes concerns regarding its actual safety.
The Pi Network embraces a cautious strategy for data protection. Users do not have to offer sensitive information such as government IDs.
Similar to other online applications or platforms, people must remain cautious. They should be wary of the amount of information they share.
Trusting the Pi Network
Currently, Pi Network has not been categorized as a scam project. However, its long-term future and the token’s future value are still unknown.
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