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 2021 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.
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. 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 2021. The total supply of Pi is also not known.
As such, it is impossible to know whether Pi Coin has any value, or to predict its price for when it does release.
But when will that be?
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.
However, there is no release date for Phase 3, nor an indication of the progress. The whitepaper states this will be "When the community feels the software is ready for production, and it has been thoroughly tested on the testnet."