Introduction to Pi Coin: Is it Really a Blockchain-Based Cryptocurrency?

I’ve heard of Pi coins long time ago, and some told me it is a shitcoin (or scam). People can mine the coins by installing an App on the smartphone.

Pi Network is a cryptocurrency project promoted via a mobile app. Its goal is to enable ordinary people to “mine” cryptocurrency through their phones. Here is a detailed introduction to Pi Coin:

Features and Mechanism of Pi Coin

Mining Method

Unlike traditional Proof of Work (PoW) cryptocurrencies like Bitcoin, Pi Coin mining is done via a mobile app. Users can “mine” by logging in daily and clicking a button. This mechanism is designed to lower the technical and hardware barriers for participation.

Consensus Mechanism

Pi claims to use the “Stellar Consensus Protocol” (SCP), which, instead of relying on computational power, achieves consensus through a trust graph—a network of trust relationships between users.

Low Resource Usage

Mining Pi Coin does not depend on the computational resources of a user’s phone, meaning it does nott significantly drain battery or data. This stands in stark contrast to the energy-intensive nature of other cryptocurrencies.

Network Roles of Pi

• Pioneer: Regular users who earn Pi Coins by signing in daily.
• Contributor: Users who build the trust graph by inviting others to the network.
• Ambassador: Users who promote the network and grow its activity through invitations.
• Node: Users who run Pi Node software on their computers to provide distributed ledger support for the network.

Is Pi Coin Truly a Blockchain Project?

Pi Coin has sparked debates, and opinions are split into two camps:

Arguments Supporting Pi Coin

• Blockchain Promises: The Pi team claims it will eventually migrate Pi Coins to the mainnet, making it a truly blockchain-based cryptocurrency.
• Growing User Base: Pi Coin has attracted a significant number of users, especially in regions with less exposure to blockchain technology. This could contribute to the global adoption of cryptocurrencies.
• Development Team Background: The core team includes Stanford University alumni, which highlights the project’s academic background and technical expertise.

Arguments Questioning Pi Coin

• Lack of Mainnet: So far, Pi Coin’s activities remain on a closed “testnet.” The promised migration to a public blockchain mainnet is yet to happen, which means it hasn’t achieved true decentralization.
• Lack of Transparency: The project hasn’t disclosed its codebase or detailed technical implementation, making it hard for the community to verify if it’s genuinely blockchain-based.
• Questionable Business Model: The app features in-app advertisements, raising concerns that ad revenue may be the project’s main goal rather than building an innovative cryptocurrency ecosystem.
• No Real Market Value: Pi Coins are not listed on any mainstream cryptocurrency exchanges, making them non-tradable and lacking a clear market valuation.

Risks of Pi Network

Pi Coin is still in its early stages. Whether it is genuinely based on blockchain technology, whether it will fulfill its promise of decentralization, and whether it will attain real-world value all remain uncertain. If you’re interested in Pi Coin, you can participate in its mining through the app, but be aware of the potential risks:

• Time Investment: If the project fails, the time spent may not yield any returns.
• Data Privacy: Submitted personal information may be used for other purposes.
• True Value: It is unclear if it will materialize into a genuine blockchain-based cryptocurrency.

For blockchain enthusiasts, it is worth keeping an eye on Pi’s progress, but be cautious of overly ambitious promises or projects with opaque operations.

Exchanges Supporting Pi Coin

On CMC/CoinMarketCap, one Pi Coin is currently listed as $49.

Exchanges supporting Pi, as shown on CoinMarketCap’s trading price

However, it is said that withdrawals and deposits have been suspended for over 3 years.

Few exchanges support Pi Coin, including HTX and BitMart, but withdrawals and deposits have been halted for over 3 years. Sh*tcoin.

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• Introduction to Pi Coin: Is it Really a Blockchain-Based Cryptocurrency?
• Introduce to Solana Blockchain

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