Pi Network As Crypto And Criticisms Surrounding It

Pi Network as a crypto currency is criticised on the following two grounds:

  1. Cryptocurrency mining is not possible through mobile phones as “mining” consumes too much energy which cannot be provided by mobile phone battery; and
  2. Pi Network is a multi-level marketing (MLM)/ pyramid scam because it asks you to recruit more people.

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People who criticise Pi on the above grounds do not understand the basics of blockchain technology and crypto currencies; they only rely on what they have already seen in the shape of Bitcoin mining and do not know about other possibilities in the blockchain technology.

The creation of transactions and the confirmation of blocks, in blockchain technology, in done in three different ways (consensus methods/protocols) namely, Proof-of-Work (PoW), Proof-of-Stake (PoS), and Proof-of-Authority (PoA).

PoW is the conventional methods through which transaction and block confirmation is done by solving mathematical puzzles. Obviously someone with more computing power is able to do better due to huge energy requirements.

PoS is the new method implying that an individual with more blocks [read stakes] is given more mining power on the blockchain.

PoA is a consensus method in which only few members of the blockchain ecosystem are given the authority to validate new blocks and transactions.

Of these three, Pi is using the Proof-of-Stake (PoS) consensus method to validate transactions and blocks. What we are “mining” on our mobile phones are not real Pi but token Pi that are being converted to real Pi (blockchain) via PoS by the two thousand active “nodes” (call them mini servers of the blockchain).

As in the case of PoS, miners need to have more mining power (to build their stakes) which is not provided by the conventional electric power (as in the case of BTC) the only alternative is to build an ecosystem that somehow rewards miners/pioneers. This is done by rewarding pioneers (with greater mining capability) if they build their mining teams.

Lastly, for those who thinks that Pi Network app is stealing their data, a scam or that Pi coins is in too many circulation and won’t worth anything.

The time has come for you to be the person of your word. The time has come to do yourself more good than bad. The time has come for you to quietly delete your account, and take off your negative vibes and energy elsewhere.

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If you are doing that, do that quickly and ensure to enter your username correctly because the core team want to count the positive people remaining.

#PiNetwork
#BlockchainTechnology
#Cryptocurrency