Pi uses the Stellar Consensus Protocol (SCP), which is different from Proof of Work (PoW) (used by Bitcoin) or Proof of Stake (PoS) (used by Ethereum 2.0). SCP is a decentralized way to validate transactions without mining or staking.
It uses Federated Byzantine Agreement (FBA), where each node selects a group of trusted nodes (quorum slices) to agree on transactions. If enough trusted nodes confirm a transaction, it is finalized in 3–5 seconds. This method makes Pi fast, energy-efficient, and scalable, ideal for cross-border payments and financial applications. Unlike Bitcoin or Ethereum, Pi doesn’t rely on high computing power, making transactions cheap and accessible globally. That’s why, in the future, Pi will become the most important cryptocurrency, even more widely used and in higher demand than Bitcoin.