Is Pi Network REAL or SCAM?

Is Pi Network REAL or SCAM?

Hello there and welcome to HotNaija, your one-stop destination for the latest entertainment news, celebrity gossips and stories, lifestyle content, and cryptocurrency news. Today we'll be talking about the genuineness of the trending Pi Network.

First off, we would love to clear a misconception going all around (esp. on Twitter) that mining or learning about the Pi Network is a waste of time and the project is a pure scam. No! Pi Network is not a scam!

It is a genuine effort by a team of Stanford University graduates to give everyday people greater access to cryptocurrency. Pi's core team is led by 2 Stanford PhDs and 1 MBA, all of whom helped build Stanford's blockchain community.

We cannot guarantee that the project will succeed, however, they do promise to work their hardest to make our shared dreams a reality, while maintaining the highest standards of integrity. You can learn more about them on their core team page in the main menu of their app.

★ How does Pi work?

Pi Network is a new cryptocurrency for and by everyday people that you can mine or earn from your mobile phone. Cryptocurrencies are a new form of digital money that is maintained and secured by a community, instead of the government, banks, or other financial institutions overseeing the day-to-day operations of the currency.

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.

To start earning Pi, you must have a referral username provided by the user and then make an account by installing the app to your smartphone and continuing to open the app every 24 hours.

★ Can my phone mine Pi?

If you're active on the app, you can gain Pi every hour. The network uses SCP (Stellar Consensus Protocol) for mining, which can be better understood by reading in detail on the Pi whitepaper. In comparing existing consensus algorithms, the process that records transactions into a distributed ledger – the SCP emerges as the leading candidate to enable user-friendly mobile mining.

The Stellar Consensus Protocol was architected by David Maziers (a professor of computer science at Stanford University) who also serves as Chief Scientist at the Stellar Development Foundation.

SCP uses a novel mechanism called “Federated Byzantine Agreement”, to ensure that updates to a distributed ledger are accurate and trustworthy. SCP is also deployed in practice through the Stellar blockchain that has been operating since 2015.

Note: Pioneers are active users who open the Pi Network app every 24 hours.

★ What are the Pi earning levels?

• Contributor: This would be unlocked after the first three days. The formula for calculating the speed bonus is –  “the number of security × the basic speed × 20%”. The maximum numbers of security connections are five.

• Ambassador: The more people you invite, the higher the speed bonus you get. The formula for calculating the speed bonus is – “the number of actives × 25% × pioneer bonus + contributor bonus”.

Note: The speed bonus will only be increased when the invited user is active. So, it is important to invite people who you believe will stay active for a long time. Not just for a mere sign-up bonus.

★ How many Pi are there?

“Total max supply = total mining rewards + total referral rewards + total developer rewards”. In short, there is a certain amount of Pi that is reserved for each slot in the Pi Network for the first 100 million users.

Mining supply: Based on the fixed mining supply minted per person, in contrast to Bitcoin which created a fixed supply of coins (21 million) for the entire global population, Pi creates a fixed supply of Pi for each person that joins the network up to the first 100 million participants.

In other words, for each individual that joins the Pi Network, a fixed amount of Pi is pre-minted. This supply is then released over a lifetime of that member based on their level of engagement and contribution to the network's security.

The supply is released using an exponentially decreasing function similar to Bitcoin, over the member's lifetime. Like other cryptocurrencies, the first to start backing the currency earlier on, stand to make the most of it. The first million users used to make 2π/hr, until Pi reached its first 10 million users, users will make 0.4π/hr on their own before inviting anyone. And, the more users join, the less they will be able to make hourly.

Disclaimer: None of these is meant to be construed as investment or financial advice. They're just opinions and we urge everyone to do more deep personal research before investing their money anywhere.

So there you have it. Make sure you check out our other blog posts for more information about the crypto market and trending entertainment headlines. Thanks for reading!