Everything you need to know about Pi Network: History, Launch, Price

What is the Pi Network?

Founded by Stanford PhDs Nicolas Kokkalis and Chengdiao Fan, the Pi Network is a Web3 project designed to make cryptocurrency mining accessible on mobile devices. The native currency of the network is the Pi coin.

The network utilizes the Stellar Consensus Protocol (SCP), which enables fast and secure transactions with significantly lower energy consumption than Proof-of-Work systems like Bitcoin. This user-friendly approach has helped the platform build a large community of users, known as "Pioneers," numbering in the tens of millions.

The Pi Network Roadmap

The Pi Network was created to develop a more accessible and mobile-first digital currency, secured through social connections. The project officially launched on Pi Day, March 14, 2019, with a development roadmap structured in three phases to guide its evolution into a fully functional cryptocurrency.

• Phase 1: Network Foundation and Community Building (2019)

  The Pi Network app was launched on a centralized server to simulate a decentralized system. The primary goal was to grow the user base and distribute Pi coins by offering rewards that encouraged active participation.

• Phase 2: Testnet (2020)

  The team launched a test blockchain with Node software, allowing developers to identify and fix bugs and security vulnerabilities. This phase let millions of users experiment with transactions using Test-Pi, helping to validate 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 firewalled to prevent external connections. Pioneers can complete Know Your Customer (KYC) verification and migrate their mined Pi to the mainnet for use within the ecosystem's apps. The transition to the second period, the Open Mainnet, will occur once a critical mass of users is KYC-verified and the ecosystem is sufficiently developed. In the Open Mainnet, the firewall will be removed, allowing 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 Pi coin's utility is limited to its ecosystem. Users who have passed KYC verification can use their Pi to transfer funds to other verified users, purchase goods and services from merchants on the Pi platform, and interact with a growing number of decentralized applications (dApps) in the Pi Browser.

This enclosed period aims to foster a robust, utility-based ecosystem before the network opens to external markets. Once the Open Mainnet launches, the coin's utility is expected to expand significantly. Pi could then be used for broader blockchain transactions, listed on cryptocurrency exchanges, and integrated into e-commerce platforms as a payment method.

Controversies Surrounding the Pi Network

While some view Pi as an innovative project, it has also faced skepticism and criticism. The extended development period without a publicly tradable asset has led to doubts about its viability, with concerns that early miners might sell their holdings en masse upon launch, depressing the coin's value. The network's referral-based growth model has drawn comparisons to multi-level marketing, though the team states it is for network security. Other criticisms include the use of in-app ads, which fund server costs, a perceived lack of transparency, and a demanding KYC process that has frustrated some users.

What Lies Ahead for the Pi Network?

The future of the Pi Network depends on its successful transition from the Enclosed Mainnet to the Open Mainnet. The delay has fueled speculation, but the Core Team maintains it is a necessary step to ensure a mature and stable ecosystem is in place. A key challenge will be managing the large supply of coins held by millions of users if Pi becomes tradable on major exchanges.

For long-term viability, the Pi Network must continue to build 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 speculation.

This article is for informational purposes only and does not constitute investment advice. You should act at your own risk and seek professional advice before making any investment decisions.