What is the Pi Network? What is Pi Coin?
In the past few years, a project known as the Pi Network has become well-known, leading to some doubts about its authenticity.
Indeed, the cryptocurrency market is familiar with spurious plans and frauds. Whenever a new blockchain or digital currency appears, those investing in it must consider the possibility of being deceived.
Read on to learn more!
The Pi Network – An Overview
This article provides an overview of the Pi Network, a cryptocurrency system developed with the goal of making transactions more efficient and secure.
Stanford University students Nicolas Kokkalis and Chengdiao Fan established Pi Network in 2019, a platform that consists of an app, a coin, and a multi-level marketing (MLM) system.
The Pi Network is advertised as a way to facilitate crypto mining using a smartphone, without using up too much of the battery power.
Those who understand crypto mining recognize that it needs costly specialized hardware that consumes a lot of energy. The cost of mining is too high for the majority of people, yet the Pi Network has caught the attention of many because of the possibility of mining with a mobile phone.
The Pi Network, a free app for Android and iOS users, offers an opportunity to mine crypto and keep track of metrics.
The Pi Network App
The Pi Network app is an application that helps people access cryptocurrency and store it on their phones. It is designed to be secure and user-friendly, allowing users to easily manage their cryptocurrency. It also provides a platform for users to interact and trade with each other. The app is available on both iOS and Android, making it accessible to a wide range of users.
In order to utilize the Pi Network app, individuals must first create an account. To do this, they must sign up either through their Facebook or phone number and provide their first and last name as well as a username and password. After this step, a quick tutorial is available to guide them through the rest of the process.
It is true that the Pi app is quite basic, yet it does not necessarily mean it is not up to standard. With the app, you can easily view the mining yields, look into the Pi Network whitepaper, and access the FAQ section through the menu. To keep mining Pi coins, you have to make use of the app every 24 hours.
When you log in to the Pi app, you’ll immediately see that referrals and invitations are a major part of the platform. When you register, you’ll be asked whether somebody invited you, and when you’re logged in, you can use your unique invite link or code to invite others to the Pi Network. This emphasis on invites is due to the fact that the only way to mine Pi coins is by being referred by someone else. Plus, you get more Pi if you invite members.
The Pi Network app has multiple roles you can take on:
- Pioneers are those who tap the mining button once every day to mine Pi
- Contributors require three to five individuals to join a secure circle, with an additional 0.2 PI each hour
- Ambassadors must use their referral code to invite people to the platform, and for each new member, there is a 25% bonus for mining.
- Node is more akin to the conventional form of cryptocurrency mining, wherein a node uses its computer to authenticate transactions on the blockchain.
The MLM component of the Pi Network is manifest in the inviting of other individuals and the existence of different levels of profiles (which we’ll get into shortly).
What is the Pi Coin?
Pi is a cryptocurrency that was created to provide people with a new, secure, and decentralized way to transact. It is a peer-to-peer (P2P) currency that is based on the blockchain technology. The Pi coin has been designed to be easy to use, with a low transaction fee and fast transaction time. It also provides users with privacy and security, as well as having a built-in rewards system.
The Pi Network blockchain utilizes the Pi coin as its native token, which can be mined through the Pi app. As a cryptocurrency, Pi is dependent on a blockchain and the consensus mechanism used is referred to as the Stellar Consensus Protocol. This mechanism was initially designed for the Stellar (XLM) blockchain.
Currently, the worth of one Pi Coin is approximately $58, but it is essential to remember that the prices of digital currencies are in a constant state of flux and can be subject to drastic rises and drops. Moreover, PI is particularly unsteady currently, with the value changing by more than ten dollars on a daily basis, which is a considerable amount in comparison to its total price.
In addition to being a reward for miners, Pi may also be utilized inside the Pi Network as a form of payment for any related charges.
At this stage, it is not possible to exchange Pi coins on any authenticated platform, due to the fact that the network is still under Enclosed Mainnet. This hinders the usage of PI, although this might modify in the future as the project progresses.
Is the Pi Network Secure? Is Pi Coin a Fraudulent Scheme?
A major debate surrounding the Pi Network is its alleged status as a multi-level marketing (MLM) setup. Unlike companies that have employees handling recruitment, individuals are responsible for recruiting more users and are rewarded with additional Pi coins. This offer raises questions as to whether the Pi Network is a pyramid scheme.
The Pi Network’s mining setup has another dubious aspect; it is not possible to withdraw the gains from mining operations presently. This is due to the Pi Network being in the Enclosed Mainnet phase. The creators of Pi Network have expressed that the network will transfer to Open Mainnet eventually, but no specific date has been given for its full launch.
The Pi asset is not listed on any exchanges, which can lead you to question the project’s credibility. This is because the Pi Network is presently on a Enclosed Mainnet, not Open Mainnet.
The Pi Network requires KYC (Know Your Customer) for verifying the identity of fresh users, who upon completing the process successfully, are likely to be invited to the Open Mainnet. This appears to be a positive development for the Pi Network. Nonetheless, the intensive advertising of the Open Mainnet update on social media has raised further questions, since fraudulent crypto projects generally tend to employ constant promotion as a way of luring in investors.
Even though the MLM structure of the Pi Network raises some questions, there is no monetary risk connected with the app. It doesn’t require you to hand over any financial details or invest money in order to mine Pi. However, you must either give your phone number or link to your Facebook account when signing up, which could be a security issue if the Pi Network is not authentic.
Doubts Persist Regarding the Pi Network
Only when the Pi Network’s Open Mainnet is active can we know if miners can actually take out the PI tokens they’ve earned and use them on a trading platform. The multi-level marketing aspect of the project gives some reason for skepticism. Whether it ends up being a genuine crypto platform or just another dubious crypt currency plan remains to be seen.
The current trend in technology is to move towards a more digitalized world. This means that the way we interact with technology is shifting from physical to virtual. This shift has caused a revolution in the way we use technology, making it more accessible and user-friendly than ever before. People are now able to access technology with ease, as well as customize it to their needs. This has opened up a whole new range of possibilities for many, allowing them to take advantage of the digital world.
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