What is Pi Network; The Working of Pi Network Explained
- Pi network uses the proof of Stake technique for mining new coins.
- This makes it possible to mine Pi through your smartphone.
What is Pi Network
The Pi Network was founded on 14 March 2019, by Nicolas Kokkalis and Chengdiao Fan, who both hold PhDs from Stanford University.
Pi claims to be the first digital currency which can be mined just by a smartphone. It was launched as a Bitcoin rival cryptocurrency. The interesting thing about it is that it claims that it has all the qualities of Bitcoin and overcame all the disadvantages of Bitcoin.
The Pi cryptocurrency can be mined with a smartphone and all you need to do is press a button. It uses Stellar Consensus Protocol which is more energy-efficient than the proof-of-work protocol currently used by Bitcoin.
The users of the Pi Network are divided into three types: Pioneer, Contributors, and Ambassadors. Pioneers are the people who mine Pi, Contributors get an incentive for providing users to the network, and the ambassadors have to task to bring new users to the network with the help of referral links.
To mine Pi, users first need to download the Pi application. On this application, they must register themselves by creating an account. Now all they need to do is to tap the lightning button for mining Pi.
Currently, the mining rate for Pi is 0.2 per hour with 10 million existing users. Earlier it started with 1.6 Pi per hour, then it was reduced to 0.8 Pi after the first 100000 users were added. The mining rate decreases once it reaches a significant number of users. The mining is expected to continue till the network reaches its once billion members. After that, it will not be mined to maintain a good price-to-supply ratio.
How does the Pi network work
Firstly you must download an app for the Pi network on your mobile phone which is available on the Google Play and the Apple app store.
Now Sign up on the network using your Gmail id or Facebook account.
And boom you will receive your first Pi coin just by doing this to earn more and more Pi coins you will have to press the lightning button every 24 hours.
To increase your mining rate, you can also refer the app to other users and your mining rate will increase. If other users create an account using your code, you will get an Ambassador rank.
To further increase your level you can add additional hardware to the network, like a PC or a laptop. It will increase your level to Node, and you will improve your mining rate.
The reason users mine new coins using their smartphone and just by clicking a button. It uses the “Proof of Stake” technique for mining new coins. It is a lightweight and energy-efficient technique, unlike the “Proof of Work” protocol used by Bitcoin, making Bitcoin mining complicated.
To maintain network security, users must go through many processes, such as verifying their identity with social media accounts and undergoing a KYC process.