What is Pi Token?
Pi Network takes a different route when it comes to Mining architecture. It promotes and allows mining through inexpensive machines like desktops and handheld devices. Most crypto tokens require special high-power machines and a different set of people for mining. Pi democratises mining and rewards the users similarly.
The Pi app was launched on 14th March 2019 by Stanford University academics Nicolas Kokkalis and Chengdiao Fan. The app is used to mine Pi crypto tokens and users have to tap a button every 24 hours to continue the mining process.
How Does Pi Token Work
While early blockchains like Bitcoin rely on proof-of-work (PoW) mechanisms to authenticate transactions and introduce new blocks, Pi Network diverges from this approach. Instead of PoW, Pi Network employs an algorithm inspired by an early iteration of the Stellar Consensus Protocol (SCP) to validate transactions.
Upon registration, users commence mining Pi tokens by activating the mining process within the app, requiring no active engagement or intricate technical expertise. Users access the Node software by logging in through their mobile app accounts, ensuring synchronisation between both platforms.
Each user is limited to a single Pi account and node. Mining Pi is exclusively initiated via the mobile app, while the desktop node interface enables users to monitor their Pi balance, engage in chats, and access media content on the home screen.
As users mine the tokens, the apps display advertisements, creating a revenue stream for the creators.
Mining PI Token: Anyone Can Do It
Pi Network introduced a mobile mining application at its inception, enabling users to run nodes and establish security circles comprising three to five trusted individuals. This strategy fosters a global network while safeguarding against fraudulent transaction approvals. Subsequently, the developers have introduced desktop-based Pi Node software to enhance collaboration within the network.
Pi Market Dynamics
Like the Bitcoin blockchain, the Pi Network has been designed to undergo regular “halving” events to limit the creation of new tokens and foster scarcity. The mining rate was reduced from an initial 1.6 Pi per hour to 0.8 Pi when the network reached 100,000 users, further dropping to 0.4 Pi at 1 million users, and then to 0.2 Pi at 10 million users. The block reward is set to reach zero when the Pi Network reaches 1 billion users.
- Price- $40.64
- Market cap- $2.72 Billion
Future of Pi Token
The creators of Pi Token have outlined a multi-phase project roadmap, with the ultimate goal of having Pi Token adopted by numerous merchants. It aims to establish a user-secured and user-managed platform for smart contracts. The Pi utility token will play a pivotal role in realising the protocol’s vision of crafting the most inclusive peer-to-peer (P2P) marketplace to date. The founders envision masses using the Pi network through their handheld devices and transacting goods and services.
Conclusion
Pi Network takes an important step towards democratising crypto. It is an interesting way to keep the community self-sufficient even without any dedicated miners’ community. At the times when people are getting aware of the environmental changes due to human activities, Pi introduces efficient and democratic ways of mining. With the vision of a P2P (peer-to-peer) marketplace, it is a good step forward to a sustainable future.
Having said that investors are always suggested to do their research before deciding on an investment. The same goes for Pi Network as well. As Pi checks all the parameters set for the future of humanity, it will be interesting to see how it performs and grows.
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