What is the Pi Network cryptocurrency?
What is the Pi Network cryptocurrency?
Crypto

What is the Pi Network cryptocurrency?

By Marco Cavicchioli - 27 May 2020

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Pi Network is an idea that proposes a cryptocurrency that can be mined with smartphones, although it doesn’t really exist yet. 

The only thing that does exist is the App, which, according to the promoters of the initiative, would allow mining the cryptocurrency. 

However, it is not clear how to mine a cryptocurrency that does not actually exist yet, and that can not yet be publicly traded. 

Moreover, it is advertised as a decentralized cryptocurrency, and yet the blockchain and the explorer do exist, hence it is not clear what the role of mining could be at the moment. 

In cryptocurrencies, mining has the specific function of validating transactions through an algorithm that creates consensus. 

Which means that without transactions mining is totally meaningless, and without a blockchain, transactions can not be carried out. 

If this really was a decentralized cryptocurrency then its blockchain must necessarily be public, so without a public blockchain, the cryptocurrency is either not decentralized but private, or to date, the App does not really allow mining. 

In other words, although the app already exists, and it can already be downloaded and installed, it is not clear what it is for

In addition, the roadmap does not indicate a timeframe for the launch of the testnet, nor for the start of the mainnet, therefore the roadmap is only a written and published text without any deadline. 

The fact that the project is based on a network, and on a campaign of invitations to join the community, suggests that its primary goal is to create a community based on affiliations, rather than to create a new technical tool, and the fact that the App is passed off as a mining tool, whilst there is still nothing to mine, suggests that what is being said to promote it is basically a lie. 

Another very dubious point is the statement that this app doesn’t drain the battery and doesn’t use the network connection, indicating that it’s not mining at all

Currently, the project would be in phase 1, where only the app is active for mining, no one knows what. 

Only when phase 3 will start will Pi switch to a decentralized blockchain, and the app will also turn into a wallet with which to make transactions. 

Given these premises, the project turns out to be incomprehensible, unless its specific purpose is only to create a community and convince as many people as possible to download an App that doesn’t mine a non-existent cryptocurrency. 

However, at the moment the Pi Network price is 0.034 dollars, while we are writing this post.

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 11 thousand subscribers.

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