Pi is a new emerging cryptocurrency developed by Stanford students. The project is still in the development stage, but it is already possible to appropriate this currency for free. Here are more details on this very promising project.
Before diving into the world of Pi Network, it is important to understand what a cryptocurrency is. Cryptocurrencies are digital currencies that use cryptography, a method of encrypting and decrypting data, to secure transactions and control the creation of new units. They operate on decentralized networks, which means that no single entity controls them, unlike traditional currencies. Cryptocurrencies have become popular thanks to their potential to offer fast, secure and low-cost transactions. Now that you have a better understanding of cryptocurrencies, let's see how the Pi Network stands out and how you can profit from it.
Pi Network, a cryptocurrency accessible from a smartphone
The Pi is a currency under development. In order to distribute this cryptocurrency to the greatest number of people, it is possible to mine this currency for free up to a certain stage of the development of the project.
The logic of distributing this currency among users is simple: the more you contribute to the project, the more Pi you earn. Naturally, users who have supported this project for a longer time will therefore have accumulated more currency than young users.
To participate and support this project, simply install the Pi Network application on Android or iOS then create an account by logging in with Facebook or using your phone number. To finalize the creation of your account, you must provide an invitation code so as to link your account to a trusted person. You can therefore use the code of a member of your entourage. If no member of your entourage is already present on the Pi Network, I suggest my invitation code: thaydan23
Note: Collecting your phone number or connecting with your Facebook account is for the sole purpose of restoring your wallet in the event of loss or reset of your smartphone.
Once your account is created, you can instantly start mining Pi. To do this, simply click on the small flash in the right sidebar of the application to launch a mining session. These sessions last 24 hours and you must repeat this maneuver at the end of each session. This allows Pi Network developers to know the number of users actively present on the project. This will help them to have weight when launching the currency on the financial markets, during the third phase.
The three phases of the project
The project is divided into three phases. Currently we are in Phase 2 and we will soon move to Phase 3. Here is a summary of the different phases.
During this phase, the system was developed and distributed. The aim was to test the functioning of the system and to make improvements.
The software Pi Node, which allows to decentralize the currency, was launched and distributed in beta version on a testnet. The goal is to test, improve and spread the decentralization system. Pi Node is available on PC and Mac at the moment.
During this phase, users are required to validate their Pi Network account with Yoti, the KYC identity validation application on the internet. It's a good idea on the part of the developers of Pi Network to go through Yoti to validate the accounts: it assures them that the accounts are linked to real people, without us having to give Pi Network our documentation. official identities. Yoti is an intermediary. The only data collected by Pi Network through Yoti are: profile picture, full name, date of birth, mobile phone number and email address.
During this phase, users are also gradually prepared to migrate their Pi Wallet to the Mainnet (the decentralized network that will be used during the launch in Phase 3). For this, users are invited to follow the mandatory steps of the “Mainnet Checklist”:
- Download the Pi Browser app : it is an internet browser that will allow access to the decentralized network of Pi Network and in particular to consult its Wallet and to make payments in Phase 3.
- Create a Pi Wallet : once on Pi Browser, you must create a Wallet Mainnet, this is the place where the Pi you currently have in Phase 3 will be migrated.
- Confirm Wallet Pi : follow the steps to confirm and secure the previously created Wallet.
- Engage in a Lockdown Setup : to ensure the sustainability of this cryptocurrency and to avoid that all users withdraw their Pi during the launch and that the value of the Pi falls to 0, users are invited to lock their Pi during the launch so that they cannot withdraw them immediately , in exchange for an increase in mining rate. It is possible to choose the locking percentage (from 25% to 200% of the wallet), and to choose the locking duration (from 2 weeks to 3 years). The higher the percentage and duration, the higher the user's mining rate. As an indication, by locking 90% of the Pi over 3 years, the mining rate is boosted by +533% (this may vary depending on other criteria which are indicated in the application). This locking is not mandatory.
- Submit your KYC request.
- Wait for KYC results.
- Sign the acknowledgment of receipt to be queued for automatic migration.
When the decentralization system is operational, the official Pi mainnet (the Mainnet) will be launched. From this phase, it will be possible to start withdrawing or exchanging the Pi for other currencies, such as the euro or the dollar for example. It will also be possible to pay on sites offering this payment method.
In phase 3, Pi users will also be able to create a personal storefront that will serve as a point of sale to offer goods and services to other members of the Pi Network.
How much can we earn?
By default, each user earns 0.0117 Pi/hour (May 7, 2023), or about 8.5 Pi/month.
Then it is possible toincrease your mining rate in different ways :
- Invite people : the more people you invite, the more your mining rate increases
- Notify inactive : referrals who do not mine are not taken into account in the calculation of your mining rate, so it is important to click on the “Notify inactive” button so that they receive a mining reminder.
- Create a Circle of Trust (Security Circle) : after 3 mining sessions and having sponsored 3 or more people, you can designate trusted people among your referrals, to improve network security and the integrity of your account. This increases the mining rate.
- Define a lock configuration of the wallet (as indicated above in the Mainnet Checklist)
The detail of your mining rate calculation is displayed in the application and updated in real time.
Note that the distribution of Pi is limited. If it were possible to get it indefinitely, the Pi would have no value. The distribution system works as follows: when the number of users of the Pi network is multiplied by 10, the earnings per hour are divided by 2 (for a few months the rate has been updated every 1st day of each month, keeping this logic of proportion). Thus, as the number of users increases, the number of Pi distributed per user decreases, until it is no longer possible to earn any more. At that time, all of the Pi will have been fully distributed and distributed.
It is also possible to earn pi in several other ways:
- Become a KYC identity validator for the network. This earns one Pi per commit.
- Participate in the decentralization of the network. By installing and running the software Pi Node on Windows or Mac, you are helping to decentralize the network and are therefore rewarded for it.
- Use Pi apps (Pi Apps) from Pi Browser: By using certain applications available on the Pi Network, you help test the operation and accelerate the deployment and construction of a solid and functional network of applications compatible with Pi Network. In some cases you are rewarded for this.
As I said before, we are currently in phase 2 of the project. At this stage Pi Network is not yet really connected to the financial markets. You have to wait for Phase 3 before the Pi you have mined can be traded or sold.
Although Pi Wallet is not yet connected to the markets, it is possible to start trading Pi on certain cryptocurrency exchanges, since December 29, 2022. The first platform to have added Pi is Huobi.com. Others have since been added such as bitmart.com, SuperEx.com, XT.com or Hotcoin.com.
Pi is also referenced by Binance, but it is not possible to buy or sell them at the moment.
The current value of a Pi is $22 (May 7, 2023). That's about 20 euros, 13,000 CFA francs or 0.000034 Bitcoin.
How can the Pi gain value?
From phase 3, the Pi will go public and begin to appreciate in value. The value of a Pi will depend on the number of users on the Pi Network and more generally on the notoriety of this currency. If this currency is used by many people and attracts large investors, the value will increase. The more investors there are who want to appropriate this currency, the more the Pi will value, because it will become rare. It is the law of the market.
To give you an idea of the possible evolution of the value of Pi, you can compare this to the evolution of Bitcoin. Of course this is only indicative, because many parameters are not the same.
As a reminder, when it was launched in 2008, Bitcoin was worth less than one euro. Today, its value varies around €8,000 (May 19, 2020). We can note two notable peaks in the evolution of the value of Bitcoin: a first peak in December 2017 when the price of a Bitcoin was above 16,700 euros; and a second peak at the end of June 2019 where the price was above 10,400 euros.
Personally, I think this currency has potential and that's why I tell you about it in this article. I note several positive points:
- the ease of use and accessibility of this currency
- the fact that it is possible to mine it directly with your smartphone
- the fairly fair and equitable distribution of Pi, whoever supports and contributes to the Pi Network is rewarded in proportion to their participation
- the Pi Network application is very light and consumes very few resources
Regarding the value that the Pi will take over time, it is not possible to reliably predict whether the Pi will ever exceed the value of Bitcoin, as too many factors are random or unknown at this time. However, I think this currency has a lot of potential and in my opinion it should develop well in the coming years. As a rough guide, the coin was launched on March 14, 2019 and has over 45 million users worldwide (as of May 7, 2023).