This is the very first published post for this blog so I think we start by simplifying what the Pi Network really is about. You probably have already read several write-ups defining Pi Network but if it is the very first time that you'll learn about Pi Network from this blog, here's my take on what Pi Network is about.
What is Pi Network?
Pi Network was conceptualized and being developed by a group of like-minded Stanford PhD graduates whom we are calling the Core Team. Originally, the core team was a trio team, namely:
- Dr. Nicolas Kokkalis - Head of Technology
- Dr. Chengdiao Fan - Head of Product
- Vincent McPhillip - former Head of Community.
At present, Vincent McPhillip is no longer part of the core team. I think it's just right to mention Vincent's name as Pi Network's former member of the core team because he also made valuable contributions to the company. Moreover, with or without Vincent McPhillip on the team, the Pi Network core team must continue its missions for the already established Pi community.
According to Pi Network website, [in verbatim]
Pi is a new cryptocurrency for and by everyday people that you can “mine” (or earn) from your phone. Cryptocurrencies are new form of digital money that are maintained and secured by a community, instead of by governments or banks. Today, you can mine (or earn) Pi by helping to secure the currency and by growing Pi’s trusted network. While most cryptocurrencies (like Bitcoin) have been very hard for everyday people to use and access, Pi puts the power of cryptocurrency into the palm of your hand.
This app allows you to earn Pi coins by making simple contributions to Pi’s community. The more you contribute, the more Pi you earn.
To start earning Pi, check in every 24 hours and hit the lightning button to start mining. Once you are mining, you can boost your hourly rate by inviting trusted friends and family to join the community. After 3 days of mining, you can boost your earnings more by building your security circle, which contributes to the overall security of the network. Keep in mind, earlier members of the network mine at a higher rate than those that come after them.
In a nutshell, Pi Network is the first decentralized network, built in trust, to use mobile phones as a new way of mining cryptocurrency. Unlike Bitcoin which uses the traditional Proof of Work method of mining coins, Pi coin mining is made simple and can be done through the Pi network app, available on both iOS and Android. Pi Network's revolutionary way of mining has always been the subject of controversies from its critics. Instead of the arduous and energy-intensive work in traditional crypto mining, Pi coin mining only requires these two steps: log-in to the app every 24 hours and invite more users to the platform.
Traditionally, mining for networks like Bitcoin or Ethereum requires an incredible amount of effort, time, and computer power. The rewards are high, but the chances of making a profit are low without powerful hardware and dedicating a lot of your time. With Pi, in order to mine coins from the network, you need to fill your first role called Pioneer, and later on, your role will become a combination of two or more roles when you introduce new trusted members to the network. Having multiple roles in the network will help you earn more Pi. [Read: Your Role in Pi Network] . Without an invitation code from an existing Pi miner, one cannot go through the sign-up process to create an account.
Some critics likened the Pi Network to something like a pyramid scheme. They noted that the network exhibited some signs of a pyramid scheme, like the vague promise of riches and the need for recruitment. However, because there has been no exchange of money involved at all, the Pi network technically cannot be considered a pyramid scheme. The only thing that users have disclosed is some basic personal information needed to sign up to the network.
I personally disagree with the pyramid scheme suspicions because the referrer only gets incentives from his first level direct referrals, and will not get any incentives from the referrals of his direct referrals. This also means that the early members doesn't always have an advantage over the later members. Having that said, I am also open and accepting to the fact that Pi Network uses the "word-of-mouth" advertising as a way of bringing in new members to the platform which is not a bad thing because it is a proven cheap way of advertising and to tell you honestly, it just really works. Within just two years since the core team established Pi Network in 2019, the number of members reached more than 30 Million!
In addition to the pyramiding suspicions against Pi Network, the appearance of optional video ads on the Pi Network app also triggers the critics. They are speculating that the founders may be monetizing the increasing userbase of the app and using users’ data for financial gain. I highlighted the word "optional" because video ads can easily be turned off in the app should you wish not to be bothered by advertisements when using the Pi Network app.
While we cannot vouch for the legitimacy of the Pi network, it’s far too early to confirm whether it really is a scam.
***This is just a very short introduction to Pi Network and I will be writing more blog posts regarding the Core Team, Roles (i.e. Pioneer, Contributor, Ambassador, Node), Security Graph and Security Circles, Utilities, Pi Network Roadmap, The Open and Enclosed Mainnet, KYC process and so many other topics that need to be addressed before and after the launching of the Open Mainnet.
Thank you for reading Your Piece of Pi Network #YPOPNET Blog's very first post. I personally call this first post as my Genesis Blog post, a wordplay derived from Pi Network blockchain's first ever block called the Genesis Block!