By - Ipsita Sarkar
- Pi Network coin can be mined just with a tap of a finger on the smartphone
- Mining Pi currently requires no monetary investment
- It is yet to be listed on any crypto exchange
Nearly three years since its launch, smartphone-based Pi Network has continued to court controversy. Opinion remains divided between critics who view it as nothing more than a 'scam' versus millions of members who rigorously mine the Pi crypto coin daily with the touch of an onscreen button via the Pi app.
Despite its fast growth, the smoke around Pi token's value hasn't yet cleared. Founders claim Pi is "NOT free money", rather a long-term project that considers all its members' contributions and time efforts. The Pi app is currently unavailable on Google Play Store since it "is currently going through a regular review cycle".
So how can we ascertain Pi's future? Let's find out more.
Read more: Can Pi Be A Planet-Friendly Crypto?
To understand the controversy around it, let's first understand what Pi Network is.
Founded by some Stanford graduates, Pi Network is based on a unique concept that allows members to mine its coin from mobile phones. The team claims that mining Pi coin doesn't require any crypto mining equipment like Graphic Processing Units (GPUs) or application-specific integrated circuits (ASIC).
The project became controversial since it allows anyone and everyone to mine just with a tap on smartphone sans any investment. Experts also claim the project lacks transparency and details of its development cycle.
It creates a security circle, which consists of three to five trusted members referred by Pi's members, to build a global trust graph and prevent fraudulent transactions. Just like Bitcoin's proof-of-work (PoW) protocols, Pi nodes are based on Stellar Consensus Protocol (SCP), which validates the members of the security circle.
Doubts also arose since the Pi network wasn't based on blockchain technology. However, the digital token is expected to transition to the mainnet blockchain soon.
Until Pi is listed on cryptocurrency exchanges, it is very difficult to ascertain its value. Even after listing, there is a possibility that it may start trading from zero value. Pi coins currently cannot be exchanged with fiat currency.
One cannot buy, sell or withdraw Pi coin as of now. Withdraw or exchange facility may be activated once the project reaches its third phase of transition to a fully decentralized blockchain. It is currently in the second phase of development.