What is Pi Network? How to mine Pi?
What is Pi Network?
Pi Network is a virtual currency that can only be mined or mined on a phone, but does not consume device resources like other free mining applications. Previously Pi Network could include mining applications such as Electroneum (ETN), but this application consumes your device resources to decode the algorithm (Electroneum uses cryptonight algorithm). With Pi Network, when you dig coins will feel the device does not heat up. In addition, you can also turn off the application or turn off the network and still be able to mine coins every 24 hours.
Note:
- The project is still in progress which means that there will still be errors and some details of the project are still changing. While many cryptocurrency projects start from pure theory, Pi Network seeks to balance theory with design and people-centered (or experiment with real people to best meet their needs). The project appreciates your patience and welcomes your input as we work together to develop products that best meet community needs.
- Pi is NOT free money. It is a long-term project whose success depends on the collective contributions of its members. Pi helps people capture economic value, which is held by banks, technology giants (e.g. Facebook, Amazon) and other intermediaries. Pi depends on the collective contributions of its members. Therefore Pi NetWork is not suitable for those who want to make money quickly.
The goal of Pi Network is to create a blockchain with Stellar Consensus Protocol (SCP) to optimize resource efficiency and be most user-friendly through the use of the system Drake’s security circle.
Project Pi Network commenced operations on March 14, 2019 (official Pi day), when developers launched their mobile apps. They then market it as a free, phone-friendly mobile mining app that you only need to visit once a day to continue mining yourself. Mining speed starts at 3.1 Pi/h and halves every time the number of users grows above a certain amount.
The Pi Network community is getting bigger and bigger and by August 2020, the app had more than 7 million members joining at a rate of 0.4 Pi/h.
Can Pi connect communities of up to 7 million people? Incredible!” Yes, but that’s not what happened. Inside Pi’s prospectus, we can see that the Pi network project has 3 phases: beta, testnet, and mainnet.
The testnet phase has been beginning from March 2020.
Is Pi a scam?
Pi is not a scam. It is a genuine effort by a team of Stanford graduates to give everyday people greater access to cryptocurrency. Pi’s core team is led by two Stanford PhDs and one Stanford MBA, all of whom helped build Stanford’s blockchain community. They cannot guarantee that the project will succeed. However, they do promise to work their hardest to make their shared dreams a reality, while maintaining the highest standards of integrity. You can learn more about them in “Core Team” page in the main menu of the app.
After analyzing the whitepaper and taking a deeper look at this project, I explain why the Pi Network project is often suspected by many as a scam, but it is not.
- The goal of the Pi Network project is for mass adoption and targeting a large community. And because most people often hear about Bitcoin, there is a comparison between the weaknesses of Bitcoin and the advantages of the Pi, which inadvertently lead to a portion of the crypto community judging it as a hoax. bluff. Because they lost A LOT of CASH into crypto projects in the 2017–2019 period, which are inherently bankrupt and often compare themselves as Bitcoin innovations. As we described above, it is not certain that the Pi Network project will be successful, but even if it fails, you will wonder if you have LOST MONEY on this project?
- Mass adoption has to go hand in hand with widespread distribution. Through the app, Pi Network is distributing prefabricated tokens to its users. This term is roughly called the digging of Pi to make it easier for everyone to understand.
- Building a blockchain from its infancy is no easy task, and most projects end up being hacked because of weak network security capabilities. Through SCP (roughly understood as the secure circular consensus mechanism that the Pi community is connecting to), network security is greatly improved. However, since the Stellar Consensus Protocol is so confusing, the Pi just emphasizes promoting the building of a secure circle between users.
- Pi also claims to be the first cryptocurrency that you can mine on your phone. But actually, Monero is the first coin to have a Minergate application.
How to make money with Pi Network?
- Describing how to earn Pi
Pi Network does not call you to invest or do anything. Your job is very simple, you just have a phone, download Pi Network app and create an account, press Start button every day and the PI mining process will take place even if your computer is not connected to the internet.
You do not need to leave the app open to mine. Pi does not affect your phone’s performance, drain your battery, or use your network data. Once you hit the lightning button, you can even close the app and you will continue to mine Pi. So how can you mine a cryptocurrency without draining your battery or data? Instead of burning energy as proof of work cryptocurrencies like Bitcoin do, Pi secures its ledger when members vouch for each other as trustworthy. This forms a network of interlocking “security circles” that determines who can execute transactions. This novel approach allows crypto mining on your phone by leveraging your existing social connections, with no financial cost, no battery drain and a light footprint on the planet.
This app allows you to earn Pi by making simple contributions to Pi’s community. The more you contribute, the more Pi you earn.
To start earning Pi, check in every 24 hours and hit the lightning button to start mining. Once you are mining, you can boost your hourly rate by inviting trusted friends and family to join the community. After 3 days of mining, you can boost your earnings more by building your security circle, which contributes to the overall security of the network. Keep in mind, earlier members of the network mine at a higher rate than those that come after them.
2. Why do earlier members mine at a higher rate?
Earlier members mine at a higher rate to reward contributions to the network when they are most needed.
Pi aims to be the world’s most widely used and distributed cryptocurrency. To achieve that goal, Pi incentivizes its earliest members to make contributions that will ensure its success (e.g., securing and growing the network). To reflect the importance of early contributions, the rate of mining decreases as more people join the network. At this time, the base rate of mining halves every time the number of active users increases by a factor of 10. This rate will eventually fall to 0 when the network reaches a certain number of users (e.g. 10 million or 100 million). At that point, just like Bitcoin, miners will continue to be rewarded through transaction fees and not through the minting of new currency.
3. What are security circles?
Security circles are groups of 3–5 trusted people built by each of Pi’s members. Security circles secure the currency by building a global trust graph that prevents bad actors from executing fraudulent transactions.
While cryptocurrencies like Bitcoin secure their ledgers by forcing miners to burn energy (proof of work), Pi secures its ledger when its members vouch for each other as trustworthy. Pi’s Contributors vouch for each other by building security circles comprised of 3–5 members they deem as trustworthy. Security circles should be comprised of people you trust not to execute fraudulent transactions. The network’s security circles form a global trust graph that determines who can be trusted to execute transactions on Pi’s ledger.
What is the value of Pi?
Today Pi is worth approximately 0 dollars / euro etc. similar to Bitcoin in 2008. Pi’s value will be backed by the time, attention, goods, and services offered by other members of the network.
Pi’s holders will be able to turn Pi into “real” money when they either purchase goods and services on Pi’s marketplace or exchange Pi for fiat currency.
Cryptocurrency holders have two options for turning their holdings into “real” money (or to “cash out”): 1) Directly purchasing goods and services with their crypto or 2) exchanging their crypto for fiat currency (e.g., dollars, euro, etc.) on cryptocurrency exchanges.
1) Directly purchasing goods and services with your Pi. Pi Network is building a peer-to-peer marketplace where our members will be able to directly spend Pi to buy goods and services. We aim to start experimenting with in-app transfers of Pi as soon as Q4 2019.
2) Exchanging Pi for fiat currency on cryptocurrency exchanges. Pi’s Core Team does not control when cryptocurrency exchanges (like Binance, Coinbase, Kraken etc.) decide to list Pi. However, Pi will be able to be traded in Phase 3 of the project (i.e., Mainnet). At that point, exchanges can choose to list Pi. In the meanwhile, Pi’s core team is focused on implementing our technical roadmap (see Pi Network’s white paper) to reach phase 3.
Download Pi Network app
Pi Network currently supports two operating systems Android and iOS, you can access the Google Play app for Android or the App Store for iOS and search by keyword “Pi Network” or click directly at following link:
Download Pi Network on Android
Create an account and mine Pi
- Create an account
After downloading the app, you open the app to register for a Pi Network account.
You can register with Facebook account or your phone number. However, you should choose the phone number to make it easier to authenticate your Pi Network account later.
Choose your location, enter your phone number and click Go.
Then you enter the password and confirm the password. Done, click Submit
Enter the First Name, Last Name and username.
After filling all information, click Submit to move to the final step. In this step, you enter the referral code is trangmai171 (this is my code). However, you can enter anyone’s referral code. But when entering my code, I am very thankful and if there is any problem that needs support I will be very enthusiastic.
==>Note: trangmai171 code is not capitalized
So you have completed Pi Network registration.
2. Guide to mine Pi
Click Get Started and you will see the picture below
Hit the lightning button to start mining Pi.
The amount of Pi you mine per hour is shown in the Total section. If your lower members mine Pi, you will receive (the number of people x 25% x 0.2 Pi/hr). However, if they are not online for more than 1 day, you will not receive Pi from them, so you click Ping Inactive to push them to notify the application access.
3. Invite new members to the security circle
After 3 days of mining, you can build your security circle by inviting trusted friends and family to join the community to boost your earnings more. Please read section above to know what it is.
4. Verify your Pi Network account
You need to verify your account so that you can withdraw your Pi in Phase 3 of the project.
To verify your account, go to Profile and select Verify as shown:
You can choose one of two options to verify your account as below:
How to withdraw Pi? What is the timeline for withdrawals?
You cannot withdraw Pi yet. You will be able to withdraw Pi or exchange Pi for other currencies in Phase 3 of the project when Pi transitions to a fully decentralized blockchain.
Pi launched Phase 1 of the project on 3/14/2019 (Pi Day). During Phase 1, your balances are being recorded with a guarantee of being honored when Pi transitions to mainnet (Phase 3). Transfers of Pi are restricted until we reach mainnet to prevent bad actors from accumulating Pi from fake accounts. For example, a bad actor could mine from fake accounts, transfer the Pi to a legitimate account, and then pass through Pi’s account verification process despite their illicit gains. We are still refining the exact development timeline for the project. For more details, please refer to the Roadmap section of Pi Network’s white paper.
Can you mine from more than one device?
No, you cannot mine from more than one device. The network has a strict rule of one account per person. Pi uses a multi-pronged strategy to ensure Pi is not mined by fake accounts.
First, the network uses Google’s recaptcha v3 to know if a device is operated by a human or a machine. (This technology is completely invisible to most users, since they are real humans, but bots may start seeing captchas if google’s algorithm catches them). Over time, Pi’s Core Team is also developing a machine learning algorithm based on real users’ mining behavior to predict bots.
Second, Pi’s consensus algorithm requirement (security circles) make it easy to detect fake accounts. Fake accounts will not have enough real people pointing at them via security circles. At best, fake accounts would be pointing at each other with very few incoming pointers from the rest of the network. This anomaly is easy to detect with computer algorithms.
Finally, when Pi enters its 3rd and final phase — Mainnet, only accounts validated as belonging to distinct real individuals will be honored. In other words, even if all other methods missed out on some “bot” accounts, this user validation process will further eliminate them because bot owners will not be able to prove bots as real people with real names. Pi’s Core Team is currently exploring decentralized KYC processes that would be minimally intrusive.
Is this app a wallet? And can we use an external wallet to hold our Pi in the future?
Yes, your phones will serve as a cryptocurrency wallet that will be linked to your current accounts (number / Facebook).
Like with any other public blockchain, Pi’s blockchain will also allow in-app/external wallets to hold Pi and transact with it, by submitting transactions to the blockchain directly. This is a functionality that Pi’s Core Team has currently scheduled to be provided on the Phase 3 of the project. During phase 3 of the project, you will also have the option to take full ownership of your private / public keys.
You can find more information about the project on media below:
