Pi Network is a cryptocurrency project that aims to make digital currency accessible to everyday users through mobile mining. It was founded in 2019 by a team of Stanford University graduates, led by Dr. Nicolas Kokkalis, Dr. Chengdiao Fan, and Vincent McPhillip. The project seeks to create a decentralized, user-friendly digital currency that can be mined using smartphones without draining battery life or consuming excessive computing power.
Pi Network operates on the principle that Bitcoin and other cryptocurrencies have become too centralized and difficult for the average person to mine. By allowing users to mine Pi through a mobile app, the network aims to democratize access to digital currency and build a more inclusive global financial system.
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How Pi Network Works
Unlike Bitcoin, which uses energy-intensive Proof of Work (PoW) mining, Pi Network employs a Proof of Stake (PoS)-like consensus mechanism called the Stellar Consensus Protocol (SCP). Here’s how the system works:
1. Mining on Mobile Phones
Users mine Pi by opening the Pi Network app daily and pressing a button.
The app does not consume extra battery or processing power like traditional mining.
The mining rate was initially set at 0.8 Pi per hour and has been gradually reduced as the network has grown.
2. Roles in the Pi Network Ecosystem
Pioneers: Regular users who mine Pi daily by pressing the mining button.
Contributors: Users who add trusted members to their security circle, improving the network’s reliability.
Ambassadors: Individuals who invite new users and earn bonus Pi for each referral.
Nodes: Users who run software on their computers to validate transactions, similar to Bitcoin miners.
3. Security Circle
Instead of relying on computational power, Pi Network uses "security circles" where users verify each other’s trustworthiness.
This system helps secure transactions and prevents fraudulent activities.