Mining crypto on your phone with Pi network: is it a big scam?
The team of "Pi Network" invites you to mine "the first digital currency" on your phone with its free, energy-light mobile app. You just have to download the app and tap on a button once a day... Sounds cool, but is it just a big scam? cryptoN00b digs a bit deeper...
It says on their website "mining crypto is hard" - which is correct. Mining crypto based on the "proof-of-work" concept is supposed to be hard. Long gone are the days when you could mine Bitcoin on your notebook. Mining crypto requires a lot of computing power and consumes massive energy. Bitcoin is being mined by companies with massive funding, operating on large ASIC farms. But then it says also on their website "breakthrough tech allows you to mine on your phone without draining your battery".
So what's the deal, mining on a mobile device without using CPU and almost no energy consumption? Scam...?
Naaahh. Pi Network is hardly a scam.
But first things first.
You look at the founders team, all three Standford grads, two with Ph.D: Dr. Nicolas Kokkalis, Dr. Chengiao Fan, Vincent McPhillip. You google them. They are real people, no forged personas, graduated at Standford, published academical papers in the fields of social somputing and blockchain technology. You can watch them talking in social media posts. It sounds pretty unlikely to me, that those three guys banded together just to create a crypto project and rip people off based on a weird marketing scheme and then hide on an luxurious island in the Pacific.
Naah, their project is real and based on the intentions as layed out below:
The introduction of the Whitepaper hammers a couple of keywords into crytoN00b's mind: "mining and crypto for everyone", "green" and "mobile first". The team's intention seems to be an effort to make new crypto accessible for everyone (provided that they participate in the early stage) and not by mining with expensive ASIC equipment. And everyone (almost) got a mobile phone.
Pi is based on the Stellar Consensus Protocol (SCP). For us noobs, that term doesn't ring a bell. But let's quote from the Whitepaper, the SCP doesn't "have energy waste but it requires exchanging many network messages in order for the nodes to come to 'consensus' on what the next block should be." In short, your phone doesn't mine Pi. It rather communicates with the network and votes. Therefore, no significant battery and CPU usage, but your device sends and receives messages with Pi network. And for doing so, you receive Pi as a reward.
And smart enough, the Pi network team established roles of a "Pi miner" and built those algos atop SCP. In short, you will earn more Pi, the more friends and the more active they are (Ambassador). So that motivates some folks to bring in more to the project, this viral growth helped Pi to have some 5 mio active users at the time of writing - that's a big wow!
But Pi network can't just rely on mobile phones of course. They will rely on nodes. Pi needs to be mined (not on the phone). Everyone can run a Pi node, but must apply and meet Pi networks minimum requirements. cryptoN00b hasn't seen a breakdown on rewards for nodes yet.
Pi is in development stage.
Pi's testnet is in full swing. Developers can apply to work on the Pi app platform and everyone can apply to run a Pi node.
With 5 mio. users, the next halving of Pi gets nearer. If Pi reaches 10 mio. users, they plan to halve the mining rate and introduce the next phase of their governance model.
Now, cryptoN00b doesn't know how to evaluate this crypto project further. It sounds cool, it could die anytime. Pi Testnet is in the works, no one but the core team can estimate how long it would take to bring Pi to the mainnet phase: "This is the phase when Pi can be connected to exchanges and be exchanged for other currencies".
It could die for many reasons. It could be too ambitious. Thousands of crypto projects died. But as for now, it has achieved one tremendeous success that other projects could only dream of: reaching incredibly 5 mio. "normal" people (probably all crypto noobs) in short time.
5 mio. who believe that they receive crypto at this moment, and that it might have some value in the future - with just one tap a day.
Among them: cryptoN00b. Now, join me and be invited to Pi network - before it's too late:
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