With 33 million “Pioneers” spanning the globe, the Pi Network is nothing less than a wildfire. Active users of the Pi Network have grown from 1,000 to millions in a mere three years. Just what is Pi Network, and why is it so popular? One main reason is that unlike traditional blockchains such as Bitcoin, Pi tokens can be mined with a single click. Yet there are some uncertainties surrounding the coin. For one, the Pi coin still has no value — as it hasn’t yet been listed on any exchange. Its model is also undeniably similar to multi-level marketing (MLM) and pyramid schemes.

Want to understand more about the workings of this mysterious network? Then read on to find out more about it and decide for yourself if it’s legitimate or a scam.

What Is Pi Network?
The Pi Network is designed to be a revolutionary decentralized network in which its currency is mined on smartphones, rather than energy-intensive ASICs or GPUs. Founded by Stanford researchers Nicolas Kokkalis and Chengdiao Fan, Pi Network strives to be a more efficient and accessible way of conducting transactions. As compared to traditionally established networks like Bitcoin, which require energy intensive machines, the Pi Network is easy to operate and claims to be energy efficient. It’s still in its initial stages of development, but the team intends to make it the go-to currency for transactions.

It should be noted that the Pi Network’s coin is different from the Pi Network DeFi token. The Pi Network DeFi aims to smoothen capital flow by allowing people to lend and borrow freely around the world. It runs on the Binance (BNB) blockchain, and is currently listed on a few DEXs, such as PancakeSwap.

The Pi Network is a new crypto asset based on blockchain technology. It has garnered a wide user base in the initial phase of its launch. Pi Network is different from many other cryptocurrencies because it uses a unique algorithm known as Stellar Consensus Protocol that allows users to earn rewards for participating in the network.

Stellar Consensus Protocol
The Stellar Consensus Protocol provides a meritocratic-based algorithm that incentivizes users to contribute to the network by verifying transactions and blocks. This means the amount of Pi coins they earn is proportional to the effort they put in. The more users contribute to the Pi ecosystem, the more rewards they earn. This simple model enables people to earn tokens with one click of a button on their mobile phone.

Pi Network app on the mobile phone
Source: Minepi.com

The innovative Stellar Consensus Protocol (SCP) has the potential to revolutionize the way we achieve consensus in distributed systems. The Pi ecosystem is based on a novel approach called the Federated Byzantine Agreement (FBA), which allows a network of computers to come to a consensus without needing a central authority. The SCP is designed to be secure, scalable, and faster than other protocols like proof of work (PoW) and proof of stake (PoS).

Differences Between PoW and SCP
The differences between proof of work (PoW) and Stellar Consensus Protocol (SCP) are explained below.

PoW is the most well-known and widely implemented consensus algorithm, used by renowned cryptocurrencies like Bitcoin and the current version of Ethereum. It’s a mechanism that rewards miners for solving a complex mathematical problem in a block. The first node that solves the problem and validates the transaction is rewarded with cryptocurrency. While it is a very secure mechanism, as the blockchain expands it has become increasingly energy intensive.

SCP is energy efficient in comparison to PoW, as rewards can be easily mined on smartphones at low energy cost. Furthermore, unlike PoW, all contributors have distributed rewards according to the amount of effort they put to validate transactions. This makes for an even more decentralized protocol, as large organizations will not form mining pools to ensure they get rewarded.

Pi Network: How it Works
The SCP algorithm is the heart of the Pi Network protocol and manages the network topology. It is a distributed algorithm that runs on each node of the network. The algorithm is designed to converge in a finite number of steps, regardless of the network size or the number of nodes. This makes the Pi network secure, decentralized and energy efficient.

This peer-to-peer network allows users to earn rewards by participating in its consensus process through the simple tap of a button. The tokens mined go into the Pi app, which also functions as a crypto wallet. It’s currently in its beta phase, and is open to anyone who wants to join and help grow this enclosed network that will eventually move to an open network.

Pi Network App Features
Source:minepi.com

Here’s how you can be a part of the Pi Network:

pi network real / scam

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