Pi Network is a blockchain project that allows users to mine cryptocurrency through a mobile application. Founded in 2019 by Stanford graduates Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, Pi Network aims to make digital assets more accessible to the general public without requiring expensive hardware or deep technical knowledge.
How Pi Network Works
Unlike Bitcoin, which uses a high-computing-power-demanding Proof-of-Work (PoW) mechanism, Pi Network adopts the Stellar Consensus Protocol (SCP). Users form trust circles by selecting 3-5 trusted contacts who will help verify transactions on the network. This system enables network security without the large energy consumption of Bitcoin.
Users in Pi Network have several roles, including:
- Pioneer: Mines Pi by performing daily check-ins on the application.
- Contributor: Builds Security Circles to enhance network security.
- Ambassador: Invites new users to join the ecosystem.
- Node Operator: Runs Pi Node software on a computer to validate transactions.
Read also: What is Altcoin? A Comprehensive Guide to Bitcoin Alternatives
Mining Mechanism and Token Supply
Pi Network uses a token issuance model that decreases exponentially. This means that as more users join the network, the mining rate will decline. Currently, Pi is still in the enclosed network stage, meaning that users must complete Know Your Customer (KYC) verification to transfer and utilize Pi on the blockchain.
Pi Network Ecosystem and Adoption
Pi Network continues to develop its ecosystem with various blockchain-based applications and services. Pi can be used as a medium of exchange for goods and services on various platforms, both in e-commerce and physical businesses. Through the Pi Browser application, users can access various services such as Pi Wallet and applications developed by the community.
Pi Network also actively holds events like PiFest 2024, which featured more than 27,000 active sellers and 28,000 trial merchants in 160 countries. This shows the growing adoption of Pi as a globally accepted digital payment tool.
Advantages of Pi Network
- Easy Access: Can be mined with just a mobile application without the need for expensive hardware.
- Energy Efficient: Uses a trust-based consensus system that does not require high computing power.
- Growing Ecosystem: Supports transactions in various blockchain-based applications and services.
- Strong Security System: Uses KYC verification to maintain the authenticity of user accounts.
Challenges and Risks of Pi Network
Despite its great potential, Pi Network still faces several challenges, including:
- Not Fully Open: It is currently still in the enclosed network stage, so it cannot be traded on crypto exchanges.
- Need for a Strong Ecosystem: To increase the value of the Pi token, its ecosystem must continue to grow with more real-world applications and services.
- Competition with Other Cryptos: Pi Network must compete with more mature crypto projects with larger market capitalizations.
Read also: Gold-Based Crypto Investment: Understanding How It Works
Future of Pi Network
Pi Network plans to transition to an open network phase where Pi tokens can be widely used and integrated with other blockchain ecosystems. By continuing to develop its ecosystem through hackathons and collaborations with developers, Pi Network aims to become an inclusive and accessible global crypto-based payment system.
As a project that is still developing, the success of Pi Network will greatly depend on user adoption, completion of the KYC verification process, and the development of applications that provide real utility for Pi token holders.
Source:
What Is Pi Network? Accessed in 2025. Forbes.
Pi Network (PI). Accessed in 2025. Forbes.
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