Pi Network is a controversial digital currency project. In the past few weeks, the token has been launched in the data encryption industry since it was listed in some data encryption trading centers (including the popular trading website Huobi).

Since its establishment four years ago, the project has attracted millions of users around the world. Users can explore and obtain their local dynamic password Pi through simple tasks.

Some experts expressed concern about the legitimacy of Pi Network, claiming that the project was just a classic Ponzi scheme. In the long run, it tried to deceive investors. But is it true? Let's have a look.

This article reveals everything about Pi Network, from its launch to the latest controversial release.

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• What is Pi network?

  Pi Network is a digital currency project that allows users to carry out the actual operation of digging currency according to the smart machine. The website aims to let everyone into the encrypted space, whether they understand digital currency or not.

  Pi Network is the creativity of Stanford University graduates - Nicolas Kokkalis, Chengdiao Fan, Aur é lien Schiltz and Vince McPhillips. The elite team gradually developed and designed the project in 2018, but they released the industry report and the application software on March 14, 2019, one year later.

  Mining in the Pi network can be rewarded with Pi coins. The founder of the project claims that once the agreement is shared with the main network, Pi coins can gain use value.

  Unlike Bitcoin miners, mining mine on the Pi network is called a pioneer. The project claims to optimize the whole mining process, because the first pedestrian can carry out mining theme activities according to the intelligent machine only by clicking the button once every 24 hours. The whole process of exploration is carried out on Pi Network application software, which is suitable for Android and iOS machines and devices.

  The project applies multi-level marketing promotion (MLM) to expand its user base. In order to clearly consider, pyramid marketing organizations similar to pyramid planning are a controversial marketing strategy. At present, users receive rewards for inviting new users to add ecosystems. New partners are also authorized to add more people.

  In the case of Pi network, current users (inviters) get more Pi coins by inviting new users (recommenders) to add network. When the referee adds the service platform and becomes more and more active, the recommender can get a special percentage reward for digging coins every day.

  This plan has greatly promoted the growth of project customer base. At this stage, the ecosystem has more than 35 million active users worldwide.

  Pi Network requires users to know your customers (KYC), which is different from other blockchain technology discovery protocols. Here, users can provide their own personal information content. According to the project, the whole process is conducive to avoiding users from establishing several accounts.

  How does Pi network work?

  Pi Network claims to apply a consensus mechanism called Stellar Consensus Protocol (SCP). SCP is an optimization algorithm that allows users to receive rewards for their contributions to the network. The project claims that SCP is faster, safer and more scalable than other consensus mechanisms (such as proof of work unit (PoW) and proof of rights and interests (PoS)).

  Pi network community is composed of four personas:

  • Pioneer (mining)
  • Contributors (security personnel)
  • Messenger
  • Connection point (verifier)

  Pioneer (mining)

  Xianfeng will implement mining activity users on the Pi network. Such users click a button on Pi network application software every 24 hours to carry out coin digging theme activities to verify that they are us rather than robots. According to the report of the project itself, at this stage, the number of pioneers in the network is about 35 million.

  Although Pi Network claims to carry out mining work, there is actually no direct mining theme activity. How to deal with data encryption mining generally involves processing and verifying transaction management according to complex computational mathematical problems. Once the transaction is authenticated, they will be imported into the distributed accounting built on the blockchain. Subsequently, mining will get a newly forged digital currency because of its contribution to the network.

  Pi network has no practical blockchain technology network yet. This means that there is no transaction management in the software, so the mining in the agreement is useless.

  In order to publish blockchain technology network (mainnet), the developers of the project announced the release of closed mainnet at the end of December 2021. The network layer design scheme is used to evaluate and collect information before releasing its main network in the near future. According to the developer, the Pi network main network will be announced when the main network is ready for opening up. The open main network has no release date yet.

  Contributors (security personnel)

  After three days of full exploration, the pioneers have the right to become contributors. The contributor is Xianfeng, belonging to the security circle composed of three to five users. Becoming a network contributor has the right to receive a higher Pi coin reward.

  The security circle is a group chat composed of three to five users who respect each other on the Pi network.

  It is noteworthy that a user can be added to several security circles.

  Messenger

  When users invite new people to add Pi network according to the invitation code, they will become ambassadors (distributors). Each time the messenger invites a user to add the network, its revenue will also increase by 25%. This means that the larger the total number of invitations, the higher the emissary income rate.

  Unlike the type of contributor, users can be added to several security circles, and invitees can only join one messenger's money-making team.

  Connection point (verifier)

  The antecedent can become the verifier in the network by running Pi mobile phone software connection point on the desktop or PC. According to the operation of a connection point, the verifier can also get additional improvements in the Pi discovery process.

  At present, the network has more than 10000 subject activity detection network connection points. The founder of the project claimed that once the main network was released to the public, the connection point would participate in the maintenance of Pi blockchain.

  Pi coin objection directory: where can we buy and sell Pi?

  As of January 18, 2023, the listing date of Pi coin has not been determined. Since its launch in 2019, the project has been unable to create wealth for digital currency.

  The route map of Pi Network is divided into three parts. The elite team has completed the fourth link: project design, distribution, trust map guidance and network survey.

  According to the industry report, Pi blockchain will be released at the third link of the main network.

  In December 2022, several data encryption trading centers, including Huobi, BitMart and XT.com, launched the generation version number of Pi coin, and the trading pair was Pi/USDT. However, it is worth noting that the digital currency marked with Pi in the trading center is only I-owe-you (IOU) token, which users can use to infer the market price of Pi. This means that Pi holders cannot save or sell their accumulated tokens in such trading centers.

  In a frenzy triggered by the long-awaited release of Pi coins, the project real estate developers announced that they were not compatible with Pi sales conducted by all trading centers. The team added that users should not "touch any of these trading centers or third-party participants, because children's behavior does not belong to Pi Network."

  Is Pi Coin a fraud?

  Since Pi Network has gradually received attention, experts and scholars have expressed concern about the reasonable, legal, reliable and implicit fraud of the project. However, it is difficult to mark Pi Network as a complete fraud, because the project does not require users to pay to browse the service items on the platform.

  Even so, it is worth noting that users may be deprived of their time, because their activities on the Internet may not be profitable in the long run.

  result

  To sum up, Pi Network is a data encryption project that allows users to implement the actual operation of coin digging based on smart machines and receive rewards in the form of Pi coin (the native digital currency of the network). A group of Stanford graduates have created such a platform that everyone can easily join in cryptography.

  Although the project has attracted many users around the world, some authoritative experts doubt the legitimacy of the website and whether it is a Ponzi scheme. Recently, the generated version of Pi coins was sold in some popular trading centers, which also made the project controversial. Pi real estate developers warned users not to buy and sell tokens on such software.