Everything you need to know about Pi Network: History, Launch, Price
Launched in 2019, the Pi Network has garnered significant attention with its mobile-first approach to cryptocurrency. The project is currently in its Enclosed Mainnet phase, a step toward its eventual goal of an Open Mainnet. During this stage, transactions are restricted within the Pi ecosystem, and the Pi coin is not yet officially tradable on external exchanges.
While some cryptocurrency exchanges have listed a token named "Pi," these are typically IOUs or futures and not the actual, transferable Pi coin. This distinction is crucial for understanding the project's current status and why it continues to generate widespread discussion.
What is the Pi Network?
Founded by Stanford PhDs Nicolas Kokkalis, Vince McPhilip, and Chengdiao Fan, the Pi Network is a decentralized Web3 project designed to make cryptocurrency mining accessible via mobile devices. The native currency of the network is the Pi coin.
The network operates on the Stellar Consensus Protocol (SCP), a mechanism designed for fast and secure transactions with significantly lower energy consumption than traditional Proof-of-Work systems like Bitcoin's. This user-friendly approach to mining has helped the platform attract a community of tens of millions of users, often referred to as "Pioneers."
The Pi Network Roadmap
The creators of Pi Network sought to develop a more accessible, social, and mobile-first currency inspired by Bitcoin. The idea was to build a cryptocurrency that could be mined on a mobile device and secured through social connections. The project officially launched on Pi Day, March 14, 2019.
The development roadmap was structured in three main phases to guide the project's transition toward a fully functional, tradable cryptocurrency.
- Phase 1: Network Foundation and Community Building (2019): The Pi Network app was launched, operating on a centralized server to simulate a decentralized system. The primary goal was to grow the user base and distribute Pi coins, offering rewards to encourage active participation and network growth.
- Phase 2: Testnet (2020): The team launched a test blockchain using Node software, allowing developers to identify bugs and security vulnerabilities. This phase enabled millions of users to experiment with transactions using Test-Pi within the ecosystem, helping to test the network's stability and features.
- Phase 3: Mainnet: This phase is divided into two periods. The first is the current Enclosed Mainnet, where the blockchain is live but protected by a firewall to prevent external connectivity. During this period, Pioneers can complete their Know Your Customer (KYC) verification and migrate their mined Pi to the mainnet blockchain for use within the ecosystem's apps. The transition to the second period, the Open Mainnet, will occur when the community has reached a critical mass of KYC-verified users and the ecosystem is sufficiently developed. In the Open Mainnet, the firewall will be removed, allowing for external connectivity and the ability to trade Pi for other currencies.
Pi Coin’s Utility and Use Cases
In its current Enclosed Mainnet phase, the utility of the Pi coin is contained within its own ecosystem. Users who have passed KYC verification can use their Pi for several purposes. They can transfer Pi to other verified users, purchase goods and services from merchants operating on the Pi platform, and interact with a growing number of decentralized applications (dApps) in the Pi Browser.
The goal of this enclosed period is to foster a robust, utility-based ecosystem before opening the network to external markets. Once the Open Mainnet launches, the utility is expected to expand significantly. At that point, Pi could be used for transactions on the broader blockchain, listed on cryptocurrency exchanges, and integrated into e-commerce platforms as a payment method, allowing dApps to deploy more broadly.
Controversies Surrounding the Pi Network
While some see Pi as an innovative project making crypto more accessible, it has faced criticism and user concerns. The long development period without a tradable asset has led to skepticism, with some critics worried that early miners may sell off their holdings en masse upon an open launch, depressing the coin's value. The network's referral-based growth model has also drawn comparisons to multi-level marketing schemes, although the team maintains it is for network security and growth. Other concerns include the use of in-app ads, which the team states are for covering server costs, a perceived lack of transparency regarding token distribution, and a demanding KYC process that has frustrated some users.
What Lies Ahead for the Pi Network?
The future of the Pi Network hinges on its successful transition from the Enclosed Mainnet to the Open Mainnet. The delay in this transition has fueled speculation about the project's legitimacy, but the Core Team insists it is a necessary step to ensure a mature and stable ecosystem is in place before launch. A key challenge will be managing the large supply of coins held by millions of early users if and when Pi becomes tradable on major exchanges.
For long-term viability, the Pi Network must continue to develop real-world utility through its dApp ecosystem. The project's success will ultimately depend on its ability to create a sustainable economy that gives the Pi coin value beyond community speculation.
Please be advised that this article is for informational purposes only and does not constitute investment advice. You should act at your own risk and, if necessary, seek professional advice before making any investment decisions.
Roman Klochko