What is Pi Network?[All you need to know about pi network] %

What is Pi Network?[All you need to know about pi network]

What is Pi Network?

Pi Network is a digital currency which purpose is for the accessibility of cryptocurrency, as the centralisation of first-generation currencies like Bitcoin (BTC) has put mining them beyond the reach of many everyday users.

This Pi Network, allows users to mine PI cryptocurrency coins using its desktop and mobile phone apps, validating transactions on a distributed record.

Pi nodes use an algorithm based on the Stellar Consensus Protocol (SCP). Pi Nodes validate transactions on a distributed ledger and reach a consensus on the order of new transactions that the ledger records.

How secured is pi network?

You might be asking whether pi is secured or not, it is learnt that under SCP, Pi nodes form security circles, or groups, of three to five trusted people known to each of the network’s users. Security circles build a global trust network that prevents fraudulent transactions, as transactions can only be validated on the shared ledger if the trusted nodes approve them.

The PI mining app acts as a cryptocurrency wallet, linked to a user’s mobile phone number or Facebook account. As with other public blockchains, the Pi blockchain will allow external wallets to hold PI coins and submit transactions directly to the blockchain. However, unlike other blockchains, its developers have not yet released its source code.

With branding based on the mathematical constant π, Phase 1 of the project launched on Pi Day, 14 March 2019, with a free PI mining app. By June, the network had more than 100,000 active users. A year later, when Phase 2 launched, there were more than 3.5 million users.

The app started running ads in May 2020 to provide a source of financing for the project.

On 15 March 2022, Pi Network announced that its user base had climbed to 33 million, more than doubling from 14 million in March 2021.

In conclusion

PI was designed to undergo regular ‘halving’ to protect its scarcity – halving is when the number of coins a miner receives for processing new transactions is reduced by half. This usually occurs when a certain milestone is reached.

PI’s mining rate halved from 1.6 π to 0.8 π an hour when it reached 100,000 users, halved again to 0.4 π an hour when it reached 1 million, and halved again to 0.2 π when it reached 10 million users. The rewards will continue to halve, reaching zero when the network reaches 1 billion users.