Wouldn’t it be good if we could mint money on our phones?
Well, hold onto that thought because a cryptocurrency has made it possible!
Pi Network (PI) is the first digital currency you can mine/mint straight from your phone. It is like turning your phone into a money-making machine.
Seems interesting?
Read the blog to learn more about Pi Coin(Pi) Price Prediction, Where to Buy/Sell Pi Coin in India, Pi Coin Price, and more.
What is the Pi Network?
Pi Network is an independent blockchain network that aims to build a cryptocurrency and Smart contract platform secured and controlled by ordinary people. It became available in December 2018 and officially launched on March 14, 2019, celebrated as Pi Day. Developed by a team of graduates from Stanford, the Pi network works to build the world’s most inclusive peer-to-peer ecosystem with the help of its native token, Pi coin (PI).
What is Pi Coin (PI)?
Pi Coin (PI) is the native currency of the Pi network. Its name takes inspiration from the commonly used mathematical constant π (pi), which helps to measure the circumference and area of circular objects. The PI network gives PI as a mining reward to its participants who contribute to securing the network. These participants can also develop games, DeFi, and metaverse applications on the Pi ecosystem.
While most cryptocurrencies demand advanced mining equipment, hindering small participants, PI sets itself apart by enabling easy mining on mobiles through its official app, 'Pi Network.
How Does Pi (PI) Work?
Pi (PI) works on a unique consensus approach, the Stellar Consensus Protocol (SCP). A computer science Professor at Stanford, David Mazières, developed this protocol. Stellar blockchain has also been using it since 2015.
SCP works on the Federated Byzantine Agreement (FBA) algorithm. Under this algorithm, each network node can independently validate a transaction. However, nodes interact and have multiple voting rounds to get a common consensus to decide which transactions to record in a block. Unlike the Byzantine Fault Tolerance algorithm, where a creator chooses the set of nodes which will participate in the voting, each FBA node set has its assembly to decide that, making the whole process more inclusive and decentralized.
The whole Pi network has four different groups of participants, divided according to their work and role:
PIONEER
Pioneers use the Pi mobile app and validate their presence by proving that they are not a robot every day. Being a pioneer only requires participants to tap on the lightning button located in the Pi app.
CONTRIBUTOR
A contributor uses the Pi Mobile app and provides a list of pioneers whom they trust and know. Together, the contributors create a global trust graph to help build security circles (groups of trusted people) within the Pi ecosystem.
AMBASSADOR
An Ambassador introduces the Pi network to new people and makes them join it. The role of ambassadors is significant in boosting the adoption of the Pi network.
NODE
A Node in the Pi network is a participant who contributes to the Pi mobile app and also runs an additional Pi node software on a desktop or laptop.
This Pi node software is responsible for running the SCP algorithm, keeping in consideration the trust graph information provided by the Contributors. Anyone with at least 250 megabytes of computer storage can become the Pi Node software. This storage requirement is lesser than some other cryptos. For instance, running a Bitcoin mining node needs hundreds of gigabytes of free storage.
A Pi network participant can play any of the above roles. Moreover, if any participant wants to play more than one role, they can do that. The network rewards the participants with newly minted Pi coins (PI) for every role they play.
Pi Coin (PI) Total Supply
The total maximum supply of PI has yet to be specified. However, the platform gives a detailed explanation of its economic model and token emission policy.
The Total Max Supply of PI = M + R + D,
where
M = total mining rewards
R = total referral rewards
D = total developer rewards
Here,
M- refers to the fixed mining supply minted per person. Pi network issues a fixed supply of PI coins for each participant up to the first 100 million participants that join its mining network. In simpler words, each person who enters the Pi network has a fixed pre-mined PI supply, which keeps releasing over the lifetime of that member according to their contribution to the network security. This new supply keeps reducing with time, like the Bitcoin supply.
The Pi network calculates M through the following:
M = ∫ f(P) dx (f is a logarithmically declining function, and P is the number of people who join PI mining)
R- indicates the Referral supply involved in PI mining. This referral supply is the PI reward for all the referrers and referees involved in the PI mining referral program. The Pi network keeps a section of PI supply for this program to incentivize the adoption of the Pi network.
Here is the formula to calculate R:
R = r * M, where r is the referral rate, which is 50% total or 25% for both the referrer and referee
D is Developer Reward Supply, the extra Pi minted to support ongoing developments in the Pi ecosystem. Unlike the former cryptocurrencies with a fixed supply for the project treasury, Pi mints its developer reward as the network grows. The reason is that the total supply of this coin depends on the number of participants in the Pi network.
We can calculate D through the below formula :
D = t * (M + R), where t = developer reward rate (25%)
The distribution of PI coins takes place in a way that rewards early joiners. To do that, its mining and referral reward keeps decreasing with the increasing number of people joining the Pi network. Moreover, the network reserves a fixed amount of PI for each section.
How do you mine Pi (PI) tokens?
Follow these simple steps to mine Pi (PI) tokens:
- Download the Pi network app from your mobile app store.
- Set up your account by entering basic information like name, Username, Password, and email address or mobile number.
- Enter the invitation code. If you do not have any, ask a friend or acquaintance already mining PI coin on the Pi network app. You can also find plenty of invitation codes on the internet.
- Choose the role you want to play in the Pi network. If you only want to mine PI, choose the Pioneer role.
- Tap on the lightning button to begin mining.
- Check the app once every 24 hours and tap the lighting button to keep mining.
Technically, PI's mining process only involves tapping the lightning button in the Pi network app. It does not include any actual computation work like solving complex mathematical problems. You also do not validate any transaction. You only prove that you are not a robot but a human to get the newly minted PI tokens.
Enter a valid invitation code while setting up an account on Pi Network, as it helps you earn the referral reward. You can also share your invitation code with others when they register their account on Pi to earn additional referral rewards.
The PI coins you mine get stored in the Pi network mobile app. However, you can not withdraw or sell it as of now. As per Pi's official website, the withdrawal and selling of PI will begin in the third phase of its roadmap after the launch of its mainnet. Earlier, the Pi community was expecting this launch in October 2023, but the team behind the project postponed it without specifying a subsequent date. However, its Twitter page hinted that the launch will take place soon.
What Makes Pi Network Unique?
Here are a few things that make Pi Network unique:
Mobile Mining
Unlike traditional crypto projects like Bitcoin, which uses energy-intensive proof of work (PoW) consensus, and Ethereum, which uses computationally complex Proof of stake (PoS) consensus, Pi Network uses a relatively new, less resource-intensive mobile mining. Its mining is possible through a mobile phone, making it the first ever crypto you can mine through your mobile just by downloading its application.
Inclusive Consensus
Since mining PI is way more accessible and affordable than mining other cryptocurrencies like Bitcoin, it allows everyone to participate in its consensus, creating an inclusive ecosystem. Such a mining setup prevents institutions and companies from mining a more significant PI supply to have higher control over its network.
Unfixed Supply
While many cryptocurrencies have a fixed supply, PI has an unfixed supply structure. The total PI will depend on the number of participants involved in the Pi network. It does so to balance creating scarcity and ensuring that a large number of PI only accumulates to a few participants.
Clear Goal
The ultimate goal of the Pi network is to build a peer-to-peer value transfer system for everyday use. It undergoes all the developments with this goal in mind. For example, PI does not have a limited fixed supply like Bitcoin because it is believed that the highly scarce supply of Bitcoin encourages hoarding and prevents it from spending for day-to-day expenses. Thus, PI coins have no fixed supply. Instead, it follows an innovative token supply structure with multiple variables.
What is the History of the Pi Network?
The development and history of the Pi network can be divided into three main phases or stages: Meta, Testnet, and Mainnet.
Let’s go through them one by one.
Metaphase
In December 2018, the Pi network initiated Metaphase with the public launch of its app’s alpha prototype on the iOS App Store. This app was launched especially for the early joiners of the Pi Network. Three months later, in March 2019, the platform launched its original Pi whitepaper, marking the official launch of the Pi network.
During this phase, only those who contributed to the growth and security of the future Pi blockchain were allowed to mine Pi on the app. This phase helped the network grow by forming a community with PI coin as an incentive. It also helped set up a technological ground for the Pi blockchain.
The key achievements of the Metaphase were :
- The mobile application of the Pi network was listed on iOS and Google app stores.
- The Pi network got 3.5 million participants, establishing a community from over 233 countries and regions.
Testnet Phase
This phase began on March 14, 2020, marking the initiation of a live testnet with distributed nodes from different corners of the world. It enabled the nodes to test the Pi network consensus and other functions. Over 10,000 fully functional computer nodes are working together in the Testnet phase. This testing mainly involves the testing of connectivity, performance, security, and scalability of the Pi blockchain.
So far, the network operators have employed three strategies during this phase:
- Decentralization through testnet nodes
- Using the main Pi app for mobile mining
- Creating utility through Pi apps on the Pi browser
This phase's essential purpose is to prepare the network nodes for the mainnet launch.
The key achievements of the Testnet phase were
- Many node software versions were released.
- Pi network released vital infrastructure components like Wallet, Browser, Brainstorm, and developer tools.
- The first-ever worldwide online hackathon of the Pi network was completed.
- Pi network registered a growth of over 30 million engaged participants, 10,000 fully functional community nodes, and 100,000 daily active nodes on the waiting list.
- Pi Network became accessible in almost all countries.
Mainnet Phase
The Mainnet phase is the final phase of development for the Pi network. It will have two periods- the firewalled Mainnet (the Enclosed Network) and then the Open Mainnet (the Open Network).
According to Pi's official website, the Enclosed Mainnet launch occurred on December 28, 2021. Since it is an enclosed period of the mainnet phase, it involved establishing a firewall to guard the blockchain from external connections. It then allowed the network pioneers to migrate their Pi to their mainnet wallet starting Jun 28, 2022. It began using Pi within the Enclosed mainnet period for the KYC’ed pioneers. However, the connectivity between the Pi blockchain and other blockchain is not functional during this period.
Currently, the Pi network is in this Enclosed Mainnet period. Hence, there will be no connectivity between Pi and other blockchains or exchanges. Due to that reason, the exchange of PI coin for Fiat currency and other cryptocurrencies is prohibited as of now. The future contracts related to transferring Pi for fiat or other crypto are also not functional.
Once the Enclosed mainnet ecosystem matures, the Expectation is that the Pi network will launch its Open network period. This period will mean that the firewall of the enclosed network period will be removed, allowing Pi to begin initial connectivity.
Where is Pi Coin (PI) Listed?
As discussed above, the Pi network is currently in its Enclosed mainnet period from December 2021. That means the network protocols restrict Pi coin connectivity with external crypto exchanges and wallets. Thus, PI is not listed on any crypto exchanges as of now. You can not trade or buy PI tokens. However, you can mine it by downloading its mobile application. Only once the open network period of this crypto begins will exchanges be able to list it online.
Where can you buy Pi coin (PI) in India?
Pi coin (PI) is not yet public to trade, buy, or transfer on any crypto exchange. However, you can purchase its IOU (Initial offering unit) through a few selected exchanges.
PI IOUs are the temporary promise of the actual PI coins to be fulfilled once the platform launches its mainnet. In other words, IOU represents that the token does not exist currently in the blockchain network. It is important to note that the price of these IOUs fluctuates based on their demand and supply, like real cryptocurrencies. The high confidence in the project represented by an IOU also makes its price surge, giving investors opportunities to make a profit. However, they do not represent the actual ownership of the asset. Moreover, the Pi network does not authorize any of these IOU listings and hints that they have not operated on real Pi, causing a loss for the participants.
Pi Coin v/s Bitcoin: Which is Better?
Introduced in 2008, Bitcoin is the first cryptocurrency, enjoying a significant first-mover advantage over its counterparts, including Pi coin. The market dominance and widespread adoption of Bitcoin are way higher than Pi coin, which is currently unavailable for trading or purchase.
Bitcoin operates on the proof-of-work (PoW) consensus mechanism, demanding substantial energy and mining resources. In contrast, Pi coin has adopted a distinctive approach by integrating mobile mining into its framework. While mining Bitcoin (BTC) necessitates sophisticated equipment and significant electricity consumption, Pi coin (PI) allows mining through mobile phones, fostering accessibility and ease of participation.
Pi network contends that the Bitcoin network leans towards high centralization due to the high entry barriers in mining. Citing data from its official website, Pi Network asserts that 1% of the Bitcoin network controls 87% of all bitcoins, implying a concentration of power that poses challenges to broad-based consensus. However, given that the Pi network is still in its developmental phase, awaiting the launch of its mainnet, predicting the success of its inclusive "mobile mining" is challenging.
Pi Coin (PI) Price Prediction
While Pi coin (PI) remained off the trading landscape until the initiation of its mainnet, the prevailing popularity and investor response to its IOUs offer insights into its potential listing price. Since its project inception, PI has received good popularity, owing to its distinctive mobile mining feature.
With an impressive user base of 5 million active users and a total of 47 million users, the Pi network has successfully cultivated a robust community even before the launch of its native PI coin.
The IOU for the PI coin achieved an all-time high (ATH) of $330.65, indicating a promising valuation for its actual launch price. However, the current trading value of the PI IOU stands at $34.80, representing an 89.54% decrease from its ATH.
The impending Bitcoin halving in 2024, historically associated with initiating bull runs, is also a few months away. Consequently, the timing of the PI launch will also exert a substantial influence on its price trajectory.
Our analysis suggests that if the PI launch aligns with the Bitcoin Halving date, the coin may witness a bullish commencement. In such a scenario, an expectation for PI to surpass $31.04 within days of its launch seems plausible. In the most optimistic scenario, characterized by a successful mainnet launch and bullish market sentiments, PI can reach as high as $350 by the end of 2025.
FAQs
Is Pi Coin (PI) worth anything?
Since PI coin (PI) still needs to be listed on any crypto exchange to buy, sell, trade, or transfer, it is not worth anything at the time of writing. However, its IOU listed on a few exchanges currently trades at nearly $34. It is important to remember that these IOUs do not represent any real ownership of Pi coins, and the official Pi Network does not support them.
Is Pi coin (PI) legit?
Pi coin (PI) is a legitimate native currency within the Pi Network ecosystem. The legitimacy stems from its association with the Pi Network, a project that aims to create a user-friendly and accessible platform for cryptocurrency mining. To engage with PI, individuals can download the official mobile application provided by the Pi Network.
Please note that crypto exchanges can not list PI currently due to the ongoing developments and preparations for the mainnet launch of the project. Therefore, encountering PI on any exchange before the official mainnet release raises red flags. Such listings could be PI IOU (I Owe You) placeholders or potentially associated with fraudulent schemes.
Where is the Pi coin (PI) listed?
Pi coin (PI) is not officially listed on any cryptocurrency exchange, wallet, or platform. However, it is possible to mine PI through your mobile phone.
Where can I sell my Pi coin (PI)?
Currently, no official platform allows the selling of Pi coin (PI) as this cryptocurrency still needs to be listed. Thus, if you own a Pi coin (PI), it is possible that you own PI IOUs and not the real Pi coins. In that case, you can try to trade your IOUs on the same exchange or platform from where you bought them in the first place. Remember that Pi Coin IOUs are not equal to actual Pi Coins. Thus, be careful of fraud when selling them.
What is the PI Coin price in INR?
Pi coin (PI) is not currently available on crypto exchanges or other platforms to trade. Thus, it is impossible to tell the PI Coin price in INR. Only once the Pi network launches its mainnet and allows trading of PI will it be possible to check the PI price in INR.
