Pi Network Mining: Everything You Need to Know
The cryptocurrency industry has seen extraordinary growth and innovation over the past decade. However, the technical complexities and high entry barriers have often left many interested individuals struggling to jump onto the crypto train. One intriguing project aiming to address this issue and bring crypto mining to everyday people is the Pi Network.
Pi Network is a crypto project that I, Daria Morgen, the author of this article, have been interested in for a long time. Its accessibility aligns perfectly with the key ideals of the crypto market, like decentralization. I’m really excited to tell you more about it — let’s dive in!
Cryptocurrency Mining Explained
To understand Pi Network, we first need to explore the world of crypto mining. In traditional cryptocurrencies like Bitcoin, mining is a process where transactions are verified and added to the blockchain, or public ledger. Without mining, one wouldn’t be able to purchase BTC or exchange it on platforms like Binance or Changelly.
Mining also introduces new coins into circulation, with miners rewarded for their work with a certain number of tokens. However, crypto mining usually requires substantial computational resources and energy consumption, factors that have raised environmental concerns and increased the entry barrier for average users.
What Is Pi Network?
Launched in 2019 by Stanford PhDs Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, Pi Network is an innovative project designed to lower the barriers to crypto ownership. Pi Network’s main product, Pi cryptocurrency, aims to be far more accessible than traditional cryptocurrencies. Pi Network’s unique approach is a mobile blockchain mining project, meaning the “mining” process can be conducted on your mobile device, with minimal impact on device performance.
Unlike Bitcoin, which has a finite supply, the Pi Network has not yet set a maximum supply for PI coins. The objective is to create a widely distributed network ahead of the mainnet launch.
It’s important to note that Pi’s mainnet is currently enclosed, meaning its crypto coins can’t be transferred out of the network or traded on crypto exchanges yet. There are no PI coins in circulation at the moment.
How Pi Network Mining Works
The mining process in the Pi Network doesn’t rely on the computational power of your device. Instead, it uses the consensus algorithm SCP (Stellar Consensus Protocol), which allows it to be mined on a smartphone without draining your battery or data.
To start mining, users need to download the Pi Network app and sign up using an invitation code, usually from the person who referred them. The app doesn’t need to stay open for the mining to occur. Users must check in every 24 hours and hit the lightning button to boost their mining rate. The mining rate is also boosted by referring other users with your referral code, reflecting Pi Network’s emphasis on expanding its user base.
Pi Network Mining: Risks and Benefits
Pi Network brings a fresh perspective to the crypto space, aiming to democratize mining and make it accessible to everyone. There aren’t that many cryptocurrencies out there that let you mine them via mobile phone apps, so Pi Network is pretty unique. Users also don’t need any specialized knowledge or expensive hardware to mine PI coins, which can be an appealing prospect to crypto newcomers.
Moreover, Pi Network takes a cautious approach towards user data. You don’t need to provide any sensitive information to join. An email address or a Facebook account is enough. However, when the network moves out of the test phase, a KYC procedure will be required to confirm the legitimacy of the miners.
Yet, Pi Network is not without its risks. As it’s still in its development stage, PI coins currently have no value. Therefore, they cannot be traded on cryptocurrency exchanges. The project’s success largely depends on its ability to move from a test network to a fully functional blockchain.
Personally, I would recommend against dedicating too many resources to mining PI at the moment unless, of course, you have absolute faith in the project.
Step-by-Step Guide on How to Mine Pi Network
Here’s a simple guide on how to start mining Pi cryptocurrency:
- Download the Pi Network app. It is available on both the App Store and Google Play.
- Sign up. Use your Facebook account or email address to sign up.
- Set up your password. Follow the instructions on your phone’s screen to create a strong, unique password.
- Invitation code. Enter the invitation code of the person who referred you.
- Start mining. Click the lightning button to start mining. Remember to do this every 24 hours to keep mining PI coins.
You’re now ready to start mining Pi Network! Explore the app and join Pi community spaces if you want to keep up with Pi blockchain news and updates.
After signing up, every user received 1 PI. The platform has 4 ranks that let its users get some additional benefits when mining PI:
- Pioneer. This is the initial level for all users. The mining volume is 0.39 p/h.
- Contributor. To unlock this level, it is enough to mine cryptocurrency for three days.
- Ambassador. This rank is for users who invite other participants to join the Pi Network.
- Node. This level is assigned to those participants who have connected additional hardware to the network. Nodes are run on laptops and PCs instead of mobile phones.
Pi Network Mining: How To Maximize Your Profit
While it’s true that PI coins currently have no value, there are several ways to maximize your potential profits if the Pi Network becomes successful.
- Increase your mining rate. The more frequently you click the lightning button in the app, the higher your mining rate will be. Make sure to do it every 24 hours.
- Ask others to use your referral code. Encourage friends and family to join using your referral code. This increases your mining rate and, consequently, the number of PI coins you earn.
- Join a security circle. Add trustworthy people to your security circle. This improves the overall security of the network and increases your mining speed.
Conclusion
Pi Network presents a unique opportunity in the cryptocurrency revolution. With its user-friendly approach, it has the potential to introduce a whole new crowd to the exciting world of crypto mining. Whether Pi will manage to transition from the test phase to a fully-fledged crypto remains to be seen. Still, with millions of engaged users, the journey of the Pi Network is certainly one to watch.
FAQ
Is Pi Network worth mining?
While this project’s worth is largely speculative at the moment, it could potentially pay off if the Pi Network ecosystem fully develops and the PI coin becomes valuable. Mining Pi doesn’t require any special hardware or significant energy consumption, as it’s done through the Pi app on your mobile device. Given its low cost and minimal effort, many users believe it’s worth trying.
You can check out our PI coin price prediction here.
Is Pi Network legit?
Pi Network appears to be a legitimate project backed by a team of Stanford graduates. The team that developed Pi node software maintains active engagement with the Pi Network users. However, it’s important to note that the project will continue to be considered speculative and not fully reliable until it starts getting exchange listings. Additionally, even after that happens, you should still be cautious and do your own research before giving the app any of your data or wasting your resources on it.
How does Pi Network work?
Thanks to its mining approach, Pi Network differs from traditional digital currencies that can be found on the cryptocurrency market. The mining process is based on the number of active users in your network instead of computational power. Users install the Pi app, apply an invitation code to join, and then check in each day to mine PI coins and increase their mining rate.
Is Pi crypto worth anything?
Having an enclosed mainnet, Pi crypto is not yet traded on any exchanges.That’s why it doesn’t have a current price. PI’s price is speculative. It will depend on the success of the project and demand for the coin once it fully launches. Pi Network price predictions are hard to make without seeing the coin’s price history or price movement on the market.
Can PI mining hurt your mobile phone?
No, Pi mining won’t hurt your phone. Unlike traditional crypto mining, which requires significant computational power and can overheat and drain your device, the Pi app operates differently. It doesn’t use your phone’s resources to solve complex puzzles but rather assigns mining rates based on your level of engagement with the app and the network, causing no harm to your mobile device while still generating digital currency.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
The post Pi Network Mining: Everything You Need to Know appeared first on Cryptocurrency News & Trading Tips – Crypto Blog by Changelly.
Read more: https://changelly.com/blog/pi-network-pi-mining-step-by-step-guide/
Text source: Cryptocurrency News & Trading Tips – Crypto Blog b
