You must know about Bitcoin. It’s a type of digital money called cryptocurrency. But mining Bitcoin needs powerful computers. What if you could mine crypto on your phone? That’s what Pi Network is trying to do! It aims to make cryptocurrency easy for everyone.
Keep reading to learn how it works!
What Exactly is Pi Network?
Pi Network is a project that wants to make cryptocurrency simple and easy to use.
- It was started in 2019 by some smart people who studied at Stanford University.
- They wanted to create a cryptocurrency that anyone could get, even without special computers.
- Instead of using expensive equipment like Bitcoin, you can earn Pi using a simple app on your phone.
How Does Pi Network Work?
Pi Network works differently than Bitcoin.
- Bitcoin uses a lot of energy to solve complicated math problems. This is called “proof of work.”
- Pi uses something called the Stellar Consensus Protocol. This is a much simpler way to make sure everything is safe and correct.
- People on Pi Network create “trust circles” by choosing 3-5 people they trust. This creates a network of trusted users. This helps to validate transactions.
How Do You Earn Pi?
There are a few ways to earn Pi on the Pi Network:
- Pioneer: You earn Pi just by checking into the app every day. It’s like saying “I’m here!”
- Contributor: You earn more Pi by adding people you trust to your security circle.
- Ambassador: You earn even more Pi by inviting new people to join the Pi Network.
- Node Operator: If you have a computer, you can run special software called a “node.” This helps to keep the network running smoothly and you earn rewards for this.
What is the Mainnet and the Different Phases?
It has different phases.
- Right now, it’s in what’s called the “enclosed” period since December 2021. This means you can’t trade your Pi for real money yet.
- To use your Pi when it is tradable, you have to prove who you are. This is called “Know Your Customer” or KYC for short.
- The next step is the “open network” phase. This is when you will be able to trade your Pi with other cryptocurrencies and use it to buy things.
Read More: Pi Coin Launch Date: Is It 2024 or 2025? A Long-Awaited Milestone in Mobile Mining
Key People on Pi Network
Everyone on the Pi Network has a role to play.
|
Role |
What They Do |
| Pioneer |
Checks into the app every day to earn Pi. |
|
Contributor |
Creates a security circle by adding trusted people. |
| Ambassador |
Invites new people to join the network. |
|
Node Operator |
Runs special software on their computer to help the network and get more rewards. |
What Can You Do With Pi?
What can you do with Pi coins once you have them?
- You will be able to use them to buy things in the Pi Network’s own marketplace.
- You will be able to send Pi to other people.
- People who create apps can make apps that use Pi as money.
Why is Pi Network Good?
This Network has some good things about it:
- It’s easy to join. You don’t need expensive equipment or special skills.
- It doesn’t use as much energy as Bitcoin. This is good for the environment.
- The KYC process helps to keep the network safe from fake accounts.
What are the Problems with the Pi Network?
It also has some challenges:
- Because it’s still in the “enclosed” period, we don’t know how much Pi will be worth when you can trade it.
- The KYC process can take time, and some people might find it difficult.
- This Network needs more apps and services that use Pi. Without these, it’s hard to use Pi for real things.
What Will Happen to Pi Network in the Future?
The people behind this Network have big plans for the future.
- They want to move to the “open network” phase so you can trade Pi.
- They want more people to run nodes to make the network stronger.
- They want to make it possible to use Pi to buy things in real shops and online.
Comparing the Pi Network and Bitcoin
|
Feature |
Pi Network | Bitcoin |
| How to Mine | Mobile phone app |
Powerful computers |
|
Energy Use |
Low | Very High |
| Difficulty to Join | Easy |
Difficult |
Conclusion: Is Pi Network the Future of Crypto?
Pi Network is trying to make cryptocurrency easier for everyone. It’s a new idea, and it has some good things and some challenges. Whether it will be successful in the future is something we will have to wait and see.
Want to learn more about cryptocurrencies? Tell us in the comments!
FAQs:
- What is Pi Network?
It’s a project that lets you mine cryptocurrency on your phone. - How do you earn Pi?
By checking into the app, adding trusted people, or inviting new users. - When will you be able to trade Pi?
When it moves to the “open network” phase. - What is KYC?
It’s a process to prove who you are. - Is Pi Network like Bitcoin?
Not exactly. It’s much easier to join and uses less energy.
Read More Blogs About Crypto:
