The exchange Houbi (Houbi) made a sudden announcement yesterday (26th) that it was strongly recommended by users of the Pi Network community. The exchange will pay close attention to the update trend of Pi coin and will launch it as soon as the mainnet is launched . The review has aroused heated discussions in the community.
However, after verification by the dynamic zone, the project has announced on Twitter since the end of 2021 that it will launch the mainnet, but it has not taken any action and has not been listed on any exchanges so far. Many people in the currency circle regard the project as a "pyramid scheme".
But despite this, the popularity of Pi coin seems to be unaffected. According to Google play official website data, the app has accumulated more than 50 million+ downloads so far, and the official also claims that the number of daily active users exceeds 10 million. Therefore, this article will analyze the basic operation of the project for you in detail. Is it really possible to mine with a mobile phone? Why can it attract so many people to participate?
01｜What is Pi Coin?
02｜How to mine with a mobile phone?
03｜What are the risks of participating in Pi Coin?
04｜Why is it so popular?
05｜How will Pi Coin develop in the future?
01｜What is Pi Coin?
Pi Coin, also known as Pai Coin, aims to create a low-threshold, low-cost cryptocurrency network that everyone can mine through mobile phones. Just download the official APP and interact with it every day, and you can continue to get Pi Coins.
However, based on the actual research in the dynamic zone, in fact, the current application of Pi coins can almost be said to be a centralized product. First of all, a decentralized blockchain should not require users to go through KYC certification to trade. (Currently Pi Coin requires KYC to conduct P2P transactions between users)
Furthermore, even if the transaction of Pi coins is actually carried out, it is only the interaction of its transfer records with the centralized server, and there is almost no essential difference from the operation of the traditional Internet. The goal of a decentralized encrypted network is clearly contradictory.
There are only two people in the team to make public information, and the mainnet promises to skip tickets
Pi Network was born in March 2019. According to the description on the official website, the team was co-founded by Chengdiao Fan, PhD in anthropology at Stanford University, and Nicolas Kokkalis, a lecturer in decentralized applications; however, the official website did not publish any team member information except for the information of the two.
Originally in December 2021, Pi Network announced that it was preparing for the launch of the main network, which is mainly divided into two stages:
- The first stage is a "closed main network" with a firewall (which has been launched in the middle of this year), and temporarily only supports basic operations such as accessing Pi wallet and Pi browser.
- The second phase of the open main network is expected to be launched in March or June 2022; but there is still no follow-up.
02｜How to mine with a mobile phone?
The mining process of Pi coins is very simple. Users only need to "enter the app and click once every 24 hours" to easily obtain tokens. The registration process is also very simple. It can be said that as long as there is a mobile phone and the Internet, everyone can Tokens can be obtained.
However, unlike the Bitcoin or Ethereum mining that we are familiar with, Pi Network does not carry out the most basic "verification" process of mining. Instead, it is more like you developed an app today. Users only need to log in and interact every day, and they can get it for free. Tokens, but the rewards received currently do not actually exist on the chain, but on the client side of the mobile phone.
And unlike other projects, its official developers have not yet released their original code. According to the Pi Network white paper , the project uses the Stellar Consensus Protocol (SCP), which was designed and improved by Stanford University computer science professor David Mazières.
Note: David Mazières was originally a technician of Ripple, but he left due to disagreement with his ideas and turned to create the Stellar blockchain.
It is also worth noting that after verification by netizens, the so-called test network is actually just a centralized server deployed on Amazon, which can be said to be far from the decentralized system they want to build.
03｜What are the risks of participating in Pi Coin?
Many participants will say: Since I have not invested money in the first place and only have a small electricity cost, there is no loss at all. My bet is that the ecology and development of Pi Coin can really grow and generate real income.
Indeed, Pi Coin is not like some fraudulent projects, which require users to invest a high cost in the early stage and cut the leeks at the end. However, when participating in this project, there are still the following risks that need to be paid attention to.
1. The risk of real-name system information leakage
When mining Pi coins, the official will require users to perform real-name KYC authentication and provide private information such as ID cards or passports, otherwise the mined tokens will not be able to be truly claimed, which is very different from other mainstream token mining models. This move also hides the risk of user privacy information being leaked.
2. Mobile phones are embedded with malicious programs
Secondly, although there are no related disasters reported at present, judging from the fact that the official has not released a credible information security audit report and the project is developing slowly, the security of its App application on various platforms is still open to question.
Further reading: Update "BitKeep: Wallet Apk was hijacked, 8 million magnesium was transferred to BSC; users are urged to seek help from CZ
3. Token economic model is blurred
The token distribution mechanism of Pi coins has always been questioned. The project set high rewards in the early days, and a small number of people hoarded a large amount of Pi coins. If it is really listed on the exchange in the future, there may be a situation where early players cash out a lot.
However, as mentioned in the preface, if the user feels that the time and cost spent are not worth considering, the harm may not be great.
04｜Why is Pi coin so popular?
But despite the above-mentioned many doubts, I have to admit that Pi Coin has indeed attracted many people to participate. Even the only project that the author was anti-recommended by friends outside the circle was Pi Coin. Below, we analyze several reasons why this project is so popular:
1. You can mine with your mobile phone
If you want to mine tokens such as Bitcoin or Ethereum, the money and learning costs you need to invest in the early stage are not low. Pi Coin can be said to be the first project that can be mined with mobile phones, which greatly reduces the threshold for participation.
2. Viral Marketing
Pi coin has a unique mechanism when mining, that is, the more people you recommend to join, the more efficient you can mine. In fact, this is not an uncommon means of promotion, but the Pi currency is indeed applied to the fullest, so that many users voluntarily become promotion ambassadors
3. Treat it as a lottery
Finally, to be honest, since there was not much money invested in the first place, even if the project fails in the end, there will be no loss; on the contrary, if it really succeeds, it will have the opportunity to bring huge profits.
Under this thinking model, many users joined the project with the idea of giving it a try.
05｜How will Pi Coin develop in the future?
After reading the above content, I believe that you have a basic understanding of Pi Coin. As for how the project will develop in the future, it will take time to verify.
But if it is really launched on the mainnet and successfully listed on the exchange, it will inevitably face the risk of a large number of users smashing the market. After all, diehard users have waited for more than three years before they can trade. If the market cannot withstand the selling pressure, its price may The moment it is put on the shelves, there will be a free-fall plunge; presumably this situation is not happy for both the project party and the users.
Of course, there is also another possibility that the project may never be listed on the exchange, and users’ full expectations may end up being nothing but joy.
As the saying goes, the most suitable time during a bear market is to concentrate on learning and ambush potential projects. I hope that all readers can do their homework before investing and face every investment decision cautiously. You can have hope but don’t expect too much , Firmly waiting for the arrival of the next bull market.
