One recent cryptocurrency project to make a splash comes from Pi Network, but what exactly is it?
There are a plethora of new cryptocurrencies releasing in 2022 or gaining further traction. While Pi Network project first started in 2019, it has been able to take advantage of the attention cryptocurrency has garnered in the early parts of 2021.
Here's a brief look at what Pi Network is.
What is Pi Network?
Pi Network is a project developed by Stanford graduates that claims to let users 'mine' its currency on their phones. As explained in the whitepaper, Pi Network has opted for this to reduce the barriers to cryptocurrency mining.
To do this, it uses the Stellar Consensus Protocol (SCP) and the Federated Byzantine Agreement (FBA) algorithm. Here, nodes interact to reach a consensus on the next block.
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However, as explained by the Pi Network Reddit, this is not 'mining' in the traditional sense. This is because both Google and Apple do not allow mining apps on their storefront. This is similar to how there is no official Bitcoin mining app, either. Instead, the subreddit offers this explanation:
The role of the phone app is to generate Pi vouchers which will be redeemed for the Pi on the mainnet after you pass KYC.
As a result of this, the Pi Network states in the FAQ's: "Pi does not affect your phone’s performance, drain your battery, or use your network data."
Users are prompted to log in once a day to press the lightning button to start mining, which Pi states is to verify they are not a robot.
Pi Coin Price
While the Pi Network has received praise for accessibility, there remains a hefty amount of scepticism about the Pi Network and its currency - the Pi Coin.
Pi Coin is currently in pre-release mode. This means it has no actual value, and cannot be traded on any exchanges as of 2022. The total supply of Pi is 99,992,523,620 Pi, according to the testnet dashboard.
The Pi FAQs give a vague answer to questions of its price. It states: "Today Pi is worth approximately 0 dollars/euro etc, similar to Bitcoin in 2008."
However, this gives the impression Bitcoin had zero value when it first launched, which is incorrect. Bitcoin's price was close to zero, but it did not have no value. Pi Coin is worth $0 as it has not launched, not because its value is close to zero.
As such, it is impossible to know whether Pi Coin has any value, or to predict its price for when it does release. That is, if it even does release.
Pi Network Phase 3 Date
The crucial period for Pi Network will be its Phase 3. This phase will, according to the whitepaper, see the launch of the Mainnet blockchain.
Here, Pi will be able to connect to exchanges, allowing for Pi Coin to be traded.
The Pi Network mainnet launched on December 29, kicking off Phase 3 of the project. Despite this, there seems to be no indication that Pi Coin is anywhere near its full release.
Pi said in its whitepaper update that the Open Network period for Pi Network could begin on "this period may begin on Pi Day (March 14, 2022), Pi2 Day (June 28, 2022), or later."
This would remove barriers from the Enclosed Network to allow more connections to the Pi Mainnet. On June 28, an update suggested the mainnet launch is coming soon.