Pi Network is a blockchain project whose major feature is the ability to “mine” cryptocurrency on a smartphone. In traditional cryptocurrency mining, it was common to require high-performance computers and large amounts of electricity. However, Pi Network has attracted attention because mining can be done with a single tap from a smartphone app, without the need for special hardware.
Reasons Why Mining on a Smartphone is Possible
Pi Network is designed to perform the mining process in a way that consumes very little energy. Generally, cryptocurrencies that adopt the PoW (Proof of Work) method require vast calculations that involve significant power consumption. On the other hand, Pi Network utilizes the Stellar Consensus Protocol (SCP), and users can continue mining simply by launching the app and tapping a button every 24 hours. Since it doesn’t require large-scale hardware like CPUs or GPUs to run at full capacity for mining, the benefits include not only power saving but also minimal noise and heat issues.
Consensus Formation and Network Mechanism via SCP
The Stellar Consensus Protocol (SCP), adopted by Pi Network, has a mechanism for reaching transaction consensus based on a web of trust (security circles). Instead of competing through calculations like in the traditional PoW method, participants register trusted peers, and the entire network validates transactions. This is said to enable safe and efficient transaction processing while reducing energy consumption.
However, since smartphones serve as the primary nodes (units on the network), scalability issues such as transaction processing speed and node synchronization efficiency when scaled up are not fully resolved. Pi Network has not yet fully transitioned to the open network phase, and further technical ingenuity will likely be required to test its behavior under increased network load.
Comparison with Traditional PoW and PoS
Major consensus algorithms for cryptocurrencies include PoW (Proof of Work) and PoS (Proof of Stake). PoW, adopted by Bitcoin, requires vast power consumption and computational power. On the other hand, PoS, which Ethereum recently transitioned to, requires staking (collateralizing) a certain amount of coins to validate transactions.
- PoW (Proof of Work): High power consumption, powerful mining machines are essential
- PoS (Proof of Stake): Selection of validators based on coin holdings, relatively energy-efficient
- SCP (Stellar Consensus Protocol): Adopted by Pi Network, consensus formation via web of trust
In the case of Pi Network, users do not need to collateralize any amount of coins. Since participation in mining is possible simply by launching the app and tapping daily, it has the characteristic of being overwhelmingly low-barrier for beginners. However, from a security perspective, the addition of managing a 24-word key phrase introduces another aspect of risk.
24-Word Security Key Phrase and Asset Protection
For Pi Network wallet management, holding a 24-word security key phrase is essential. This is the very means of accessing the user’s assets, and if it leaks externally, there is a risk of your Pi coins being stolen. While similar key phrases exist in many traditional cryptocurrency wallets, the increasing number of smartphone users has made lax management a factor that heightens security risks.
For example, saving a screenshot on your smartphone, sharing it with others via chat apps, or backing it up in plain text on online storage significantly increases the risk of the key phrase leaking. Therefore, when operating Pi Network, it is recommended to write it down offline as a memo and store it in a safe place such as a safe or security box.
How to Securely Store Your Pi Wallet Recovery Phrase
Convenience Unique to Smartphone Mining and Points to Be Careful About
The greatest convenience brought by smartphone mining is that it can be started “anywhere, by anyone, easily.” The idea that cryptocurrency accumulates simply by installing an app, registering as a user, and pressing a button daily is low-barrier and attractive even for those new to blockchain. Furthermore, there is no need to assemble expensive machines, nor is there the stress of worrying about home electricity bills.
On the other hand, there is a possibility that the majority of users are not skilled engineers, leading to issues during network expansion. For example, with the increase in new participants, strengthening the support system is required for issues like node synchronization delays or wallet operation errors. Also, from the system development team’s perspective, it is necessary to continuously improve the transaction processing capability and the mechanism for maintaining trust between nodes when the blockchain becomes open.
Where is Pi Network Heading?
Pi Network is attracting attention as an entity that can contribute to the popularization of cryptocurrency, designed to easily incorporate a vast number of smartphone users. It has significant power to approach those unfamiliar with blockchain technology and the potential to spread the concept of cryptocurrency to a wide range of users. When it becomes an open network in the future and progresses to the stage of linking with external exchanges and developing practical DApps, the actual value verification will finally begin in earnest.
Nevertheless, the mainnet has not yet reached a complete form accessible to everyone, and it remains unknown how much global usage the SCP-based mechanism can handle. Achieving smooth transactions while maintaining network decentralization requires technical challenges and community collaboration. The key to Pi Network’s widespread adoption will be how well it can balance convenience, security measures, and trustworthiness as a blockchain.
Points to Note When Using Pi Network and Summary
When starting Pi Network mining, please pay particular attention to the following points:
- Store the 24-word security key phrase safely offline
- Implement security measures on your smartphone and update the OS and apps as appropriate
- Do not easily share the key phrase on social media or chat apps
- Do not click on suspicious links and do not neglect malware protection
Neglecting these basic measures poses a serious risk of losing the cryptocurrency you have mined or having your account hijacked. What Pi Network aims for is to “allow more people to easily participate in the world of blockchain and cryptocurrency,” and its unique concept has the potential to bring a new wave to the market.
In the future, if measures to enhance network decentralization and scalability are put in place and it gains the trust of many users, Pi Network may become a presence comparable to existing PoW and PoS-based cryptocurrencies. How it actually grows and how it will affect the cryptocurrency landscape as a whole will make it a project that continues to attract attention.