The world is becoming increasingly digital, and cryptocurrencies are slowly becoming the next natural step in the evolution of money. One such cryptocurrency that is revolutionizing the industry is Pi coin. With Pi coin, users can avert the challenges like fees, unfair value capture, censorship, pseudonymous, and so on associated with using financial intermediaries.
The Pi coin/network is built on the vision of creating the world’s most inclusive peer-to-peer cryptocurrency and smart contracts platform operated by everyday people. But what is the Pi coin, how does it work, and what benefits does it offer? This article will answer these questions and everything you should know about this Pi coin.
What is Pi Coin?
The Pi coin is a digital currency developed in March 2019. Founded by a team of Stanford University graduates, Pi coin is the first crypto token that can be mined entirely on a mobile phone, making it unique. If you are conscious of the environment, then the Pi coin is the perfect crypto token to invest in.
Technically, we can’t say Pi mining is the same as crypto mining. The reason for this is that with Pi mining, you are not actually confirming transactions as you will with crypto mining. Rather with the Pi network, you are simply validating that you are not a robot by logging into your account daily.
How does Pi Coin work?
The Pi coin is lightweight because it does not use power-intensive consensus mechanisms like Proof-of-Work (PoW) but Stellar Consensus Protocol (SCP). SCP is more scalable, quick, and secure than existing consensus mechanisms like Proof of Stake and even Proof of Work. The Pi ecosystem is built on a Federated Byzantine Agreement (FBA) technique, which makes it possible for a set of computers to reach an agreement without the need for a central authority. As such, users of the Pi ecosystem can play one of four roles:
- Pioneer: This is a user of the Pi mobile app that has to confirm they are not a robot by validating their presence every time they sign in to the app. This user can also request transactions with the app.
- Contributor: This user uses the Pi mobile app that provides a list of pioneers they trust and know. Such a user builds a global trust graph.
- Ambassadors: This is a user of the Pi mobile app that introduces other users to the Pi network.
- Nodes: This is a pioneer and contributor user using the Pi mobile app and also runs the Pi node software on a computer.
Roadmap of Pi coin deployment
The Pi network roadmap was broken down into three phases. Below are what each phase entails.
Phase 1: Design, distribution, trust graph bootstrap
Phase 1 of the Pi project was launched on Pi Day, March 14, 2019. The Pi server began operation as a faucet emulating the behavior of the decentralized system. During phase 1, there were improvements in the users’ experience, and behavior is relatively easier to make compared to a more stable phase like the main net.
Phase 2: Testnet
Before the main net launch, the node software will be launched on the test net. In this phase, the test net will use the same trust graph used in the main net but on a test Pi coin. The Pi coin team will host many nodes on the test net, encouraging more Pioneers to start their nodes on the testnet. And after a series of thorough runs on both systems, the testnet will reach a status where its result consistently matches the emulators.
Phase 3: Mainnet
Phase 3 will be launched when the community feels the software is ready for production. At this point, Pi network emulators and faucets will be shut down, and the system will continue forever. Notably, only accounts validated to belong to distinct real individuals will be transitioned into the mainnet.
Benefits of the Pi Network
Like with several crypto assets, the Pi network has its fair share of benefits. Below are some of the benefits of the Pi network.
● Scale trust across the web
It’s always a challenge to know who is trustworthy online. Many rely on a rating system to know who they can transact with online. But this means that customers will have to do the hard work of rating and reviewing peers. However, Pi’s consensus algorithm creates a native trust that helps its network users find trustworthy merchants across the web.
● Barter unutilized attention and time
The Pi network also stands out because it allows members the option to be able to barter unutilized attention by staking their Pi coin. In addition to bartering attention with peers, Pioneers can opt to barter with companies seeking attention. Everyone on the Pi network can become an influencer for the network and tap into the crowd’s wisdom.
● Build your personal virtual storefront
The Pi network does not only contribute to attention and trust, but Pioneers can contribute their unique skills and services to the future of the network. The Pi’s app can serve as a POS where Pi’s members offer untapped services and goods in a virtual storefront to another network member. And over time, the value of Pi will be supported by growing the basket of services and goods available.
● Lowers the barrier of entry for creators
Anyone that wants to start an app needs to bootstrap the community and technical infrastructure from scratch. But with the Pi dApp store, developers can leverage the community’s already existing infrastructure and shared resources. Also, the Pi network shared currency, marketplace, and trust graph act as soil for the broader ecosystem of dApp.
Overall, the Pi network is an excellent crypto token to invest in. The future is looking bright for this coin considering its utility. Currently, the Pi network claims it already has over 33 million users, and this user base is expected to grow, considering its numerous utilities. If you don’t have the Pi coin in your investment portfolio, consider including it today.