Explanation of the Bee Network project

Bee Network is a cryptocurrency project aimed at creating a decentralized ecosystem (Web3) that allows users to mine the digital currency 'Bee' using their smartphones in a simple and easy way. The project was launched in 2020 and is partially inspired by the Pi Network project, focusing on making digital currencies available to everyone without the need for expensive mining equipment or high energy consumption. Bee Network is dubbed 'the largest Web3 gateway in the world,' promoted as an interactive platform supporting diverse Web3 projects using blockchain technology.

Mining Bee via smartphone

• Mining mechanism: Mining in Bee Network does not require significant computational power or high energy consumption, unlike Bitcoin mining. Users log into the app every 24 hours and press a mining button to earn Bee coins. This process is known as 'mobile mining' and is designed to be easy and not impact the phone's performance or consume battery significantly.

• Roles in the system:

◦ Miner: logs in daily to activate mining at a basic rate starting from 1.6 Bee/hour, which gradually decreases as the number of users increases.

◦ Referrer: invites new users using an invitation code, increasing their mining rate.

◦ Verifier: verifies the identity of users in their security circle to prevent fraudulent activities and receives additional rewards.

• Referral system: Registration requires an invitation code, and the system relies on a marketing model similar to multi-level marketing (MLM), where users earn additional rewards for inviting others.

Project goals

According to the white paper and available information:

1 Making digital currencies accessible to everyone: Making mining available through smartphones to lower the barriers to entering the world of digital currencies, such as the need for expensive equipment or deep technical knowledge.

2 Creating a decentralized ecosystem: developing a platform that allows the exchange of goods and services using Bee coins, with the launch of a value exchange marketplace (Bee Marketplace) in phase three (upon reaching 10-100 million users).

3 Education about blockchain: providing an educational tool for the public about digital currency and blockchain technologies through a gamified experience.

4 Listing the coin on exchanges: the ultimate goal is to list Bee on major cryptocurrency exchanges for trading against fiat money.

5 Developing decentralized applications (DApps): Creating an ecosystem that includes mobile games, social networks, and e-commerce services.

Market value

• Current value: So far, Bee coins have no actual market value as they are not listed on any cryptocurrency exchange (until May 2025). The coins currently mined serve as 'vouchers' that can be exchanged for Bee coins upon the launch of the mainnet.

• Coin supply: The total supply depends on user activity and is calculated as follows: M (miner coins) + R (referrer coins) + V (verifier coins) + C (25% of the total is allocated to the development team). Mining will continue until reaching one billion users, at which point the issuance of new coins will stop.

• Future projections: The future market value depends on the project's success in achieving its goals, such as launching the marketplace and listing the coin on exchanges. However, there are doubts about the possibility of achieving real value due to a lack of transparency and the project's similarity to others that have not achieved significant success.

Controversy and concerns

• Transparency: The development team is anonymous, and there is a lack of technical information about the blockchain used or the consensus algorithm. This raised concerns that the project could be a scam or a means of data collection.

• Data privacy: The app requests permissions such as camera, contacts, and location, raising concerns about the collection and selling of personal data.

• Marketing model: Using a model similar to multi-level marketing has raised criticisms that it could be a pyramid scheme.

• Risks: There is no guarantee that the coins will have value in the future, and it may take years to achieve any returns, if any.

Key phases of the project

• Phase 1 (up to 1 million users): Focusing on building the user base.

• Phase 2 (1-10 million users): Implementing the KYC (Know Your Customer) process to ensure transaction security.

• Phase 3 (10-100 million users): Launching the Bee Network marketplace for value exchange and developing the ecosystem.

• Final phase (1 billion users): Stopping the issuance of new coins and listing Bee on exchanges.

Conclusion

Bee Network is an ambitious project aimed at making digital currencies accessible to everyone through mobile mining. It is characterized by ease of use and a gaming design, but it faces significant challenges related to transparency, data privacy, and market value proof. Despite having over 37 million users globally (as of June 2024), the project is still in its early stages, and the associated risks are high.

Recommendation: If you are interested in participating, use the app with caution, avoid granting unnecessary permissions, and do not rely on guaranteed profits. Do your own research (DYOR) before investing your time or data.

If you need more details or analysis on specific aspects, let me know!