What is Pi Coin? Complete Guide to Pi Network Value, Price & How to Sell Pi Coin

Pi Network

Pi Network has emerged as one of the most accessible cryptocurrency projects in the digital assets space, enabling users to mine Pi coins directly from their smartphones without specialized equipment or technical knowledge. With millions of users worldwide and growing interest in its unique approach to cryptocurrency mining, many newcomers seek reliable information about what Pi is, how it works, and its potential value. This comprehensive guide explores everything you need to know about Pi Network and Pi coin, from its founding history and technical features to tokenomics and future prospects, providing beginners with essential knowledge to understand what is Pi and this innovative mobile-first cryptocurrency ecosystem.

What is Pi Coin (Pi Network)?

Pi Network is a blockchain-based platform that enables users to mine cryptocurrency through a mobile application without requiring specialized hardware or technical expertise. Developed by Stanford graduates in 2019, the project aims to make digital currency accessible to everyday people who would otherwise be excluded from the cryptocurrency revolution.

Unlike Bitcoin and other traditional cryptocurrencies that require energy-intensive mining operations and expensive equipment, Pi can be mined simply by opening a mobile application once daily and verifying your presence. This innovative approach makes Pi one of the most accessible cryptocurrencies for beginners. As a social cryptocurrency with a developer platform, Pi Network focuses on creating real-world utility and broad accessibility rather than immediate market trading. This approach makes it particularly appealing to cryptocurrency beginners who wish to learn about blockchain technology through practical participation without financial risk.

History Behind Pi Network

Pi Network was founded by two talented individuals: Chengdiao Fan and Nicolas Kokkalis. They established the project with a clear vision to create a digital currency that is easy to use and accessible to everyone, even those without technical knowledge of cryptocurrency. The two founders embarked on this journey with strong determination to realize their vision – developing a cryptocurrency that could reach everyday users regardless of their technical background or economic resources. This fundamental purpose has guided Pi Network's development and led to its unique approach to mobile-based mining and community-centered growth.

Who Are the Founders of Pi?

Pi Network was founded by Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, both PhDs from Stanford University with expertise in different but complementary fields.

Dr. Nicolas Kokkalis

Dr. Kokkalis holds a PhD in Electrical Engineering and has completed postdoctoral work in Computer Science specializing in distributed systems and human-computer interaction. As the technology lead, his research focuses on making cryptocurrency accessible to everyday people.

Dr. Chengdiao Fan

Dr. Fan, serving as Product Chief, holds a PhD in Anthropological Sciences and applies his understanding of human behavior and social computing to build an inclusive ecosystem.

Both founders share a commitment to bringing blockchain technology to the masses and creating a platform that enables individuals worldwide to participate in and benefit from cryptocurrency regardless of their technical background.

The Relationship Between Pi and Pi Network

Pi Network is the overall ecosystem and mobile-first cryptocurrency project, while Pi coin is the native digital currency that powers this network. The relationship is straightforward: Pi Network provides the infrastructure, application, and community framework that enables users to mine and ultimately transact with Pi coins through their smartphones.

Unlike traditional cryptocurrencies that require expensive hardware and technical knowledge, Pi Network enables everyday users (called "Pioneers") to participate in cryptocurrency mining through a simple mobile app using Stellar Consensus Protocol (SCP) instead of energy-intensive methods like Bitcoin's Proof-of-Work. It is important to note that Pi coin differs from Pi Network's DeFi coin, which is a separate project with different features and availability on various platforms.

Key Features of Pi Network

Pi Network offers several distinctive features that differentiate it from traditional cryptocurrencies and make it accessible to everyday users. Here are the central features that define the Pi ecosystem:

Mobile-First Mining

Pi Network enables users to mine cryptocurrency directly from their smartphones without draining battery life or requiring specialized hardware. This approach democratizes access to cryptocurrency mining and gives everyone with a mobile phone the opportunity to participate regardless of their economic resources.

Community-Based User Roles

Pi Network's ecosystem is built around four central user roles:

• Pioneers: Ordinary users who mine Pi simply by verifying their presence daily through the mobile app
• Contributors: Users who build security circles by selecting trusted members and creating a verification layer for network security
• Ambassadors: Members who grow the network by inviting new users and expanding the community
• Node Operators: Advanced users who run validation software on computers to support network infrastructure

Stellar Consensus Protocol (SCP)

Instead of Bitcoin's energy-intensive Proof-of-Work model, Pi Network employs Stellar Consensus Protocol, which offers:

• Low Energy Consumption: The protocol is significantly less resource-demanding, enabling mining on mobile devices without notable environmental impact
• Enhanced Scalability: SCP enables the network to process larger transaction volumes efficiently
• Genuine Decentralization: Through a federated Byzantine agreement system, the protocol maintains decentralized control while ensuring network security

Security Circles

Pi Network implements a unique social trust layer through security circles, where users validate the authenticity of other network members they personally know. This creates an interconnected network of trusted relationships that helps:

• Prevent fake accounts and fraudulent activities
• Build a reliable trust graph across the entire network
• Maintain security without requiring energy-intensive computational processes

No Financial Entry Barrier

Unlike most cryptocurrency projects that require initial investment, Pi Network allows users to begin participating without any financial commitment. This free entry barrier makes cryptocurrency accessible to populations typically excluded from the digital currency revolution.

Advantages of Pi Network

Pi Network offers several significant advantages that make it stand out in the cryptocurrency landscape. These advantages address many barriers that have historically prevented widespread crypto adoption.

Universal Accessibility

Pi Network democratizes cryptocurrency mining by making it accessible to anyone with a smartphone. Unlike traditional cryptocurrencies that require specialized hardware, Pi can be mined through a simple mobile app that opens doors for people from all walks of life regardless of technical expertise or economic resources.

No Hardware Investment

One of Pi Network's most appealing aspects is that users need not purchase expensive mining equipment. The ability to mine cryptocurrency with just a smartphone eliminates the substantial economic access barrier that exists with Bitcoin and other traditional cryptocurrencies.

Energy Efficiency

Pi Network's consensus algorithm consumes significantly less energy than Bitcoin's proof-of-work system. Instead of solving resource-demanding mathematical puzzles, Pi secures its network through user trust relationships. This environmentally friendly approach reduces energy consumption while maintaining security through its trust graph validation system.

Financial Inclusion

The network's design could potentially empower regions with limited banking infrastructure by offering access to a decentralized financial system. This advantage is particularly valuable in developing economies where traditional banking services may be inaccessible to large portions of the population.

Simple User Experience

The Pi Network app functions like any other smartphone application, enabling people to mine Pi through daily check-ins without draining battery life or consuming excessive data. This user-friendly approach makes cryptocurrency accessible to beginners who might be intimidated by the complexity of traditional cryptocurrency platforms.

Improved Security Through KYC

Pi's Know Your Customer (KYC) process helps prevent fake accounts and ensures one account per person. The network combines machine learning, user verification, and community trust circles to maintain network integrity, creating a more secure ecosystem than many alternative cryptocurrency projects.

Potential for Ecosystem Development

With the mainnet launch, Pi Network enables developers to create and deploy innovative decentralized applications (dApps). This opens opportunities for a thriving ecosystem of digital services built on Pi's infrastructure, which could drive a new wave of blockchain-based innovation.

How Pi Network Works

Pi Network operates on Stellar Consensus Protocol instead of Bitcoin's energy-intensive proof-of-work system, creating a more accessible and environmentally friendly cryptocurrency. Users participate by building "trust circles," where they nominate 3-5 trusted contacts, forming an interconnected network of verified members that creates a global trust graph to secure the network and validate transactions without requiring massive computing power.

The mining process rewards different types of contributions: Pioneers earn basic rewards for daily check-ins through the mobile app, additional amounts for expanding their trusted circles, and bonuses for running full nodes on computers. Since December 2021, Pi has operated on its Mainnet blockchain in an "enclosed" period requiring users to complete Know Your Customer (KYC) verification to transfer their mined Pi to the blockchain, with plans to eventually transition to an "open network" phase allowing full external connectivity.

How Pi Coin Works

Pi Coin functions as the native cryptocurrency in the Pi Network ecosystem, earned through mobile mining activities and designed to support various transactions within the platform. Users earn Pi coins by performing daily check-ins through the mobile app, expanding their trusted circles, and contributing to network security. These coins are intended to facilitate peer-to-peer transactions and support a growing ecosystem of applications and services.

Within the network, Pi coins can be used to purchase goods and services through Pi-enabled marketplaces, transfer between users, and serve as payment within applications developed by the community. Developers are encouraged to create apps that accept Pi as payment, from e-commerce platforms to various digital services, with the network supporting this development through regular hackathons. While Pi coins currently operate within the enclosed mainnet requiring KYC verification for users to transfer their mined coins to the blockchain, the project aims to eventually enable broader utility and exchange when the open network phase begins.

Tokenomics of Pi Network

Pi Network's tokenomics is designed to promote community ownership and sustainable ecosystem development as described in its original whitepaper from March 2019. The total maximum supply of Pi is limited to 100 billion tokens, with a significant 80/20 distribution favoring the community over the Pi Core team.

Token Distribution

Community Allocation (80%)

The community receives 80 billion Pi tokens, divided into three main categories:

1. Mining Rewards (65 billion Pi): This represents the largest portion, dedicated to rewarding active users both past and future. Approximately 30 billion Pi were mined during the pre-Mainnet phase, although KYC verification requirements may reduce this to 10-20 billion Pi. The remaining supply will be distributed through a new mining mechanism on Mainnet with gradually decreasing annual caps to ensure long-term sustainability.

2. Community Organization and Ecosystem Building (10 billion Pi): Managed by the future Pi Foundation, this allocation funds community events, developer grants, and initiatives to drive network growth and engagement. This supports the development of decentralized applications (dApps) and other projects that enhance the ecosystem.

3. Liquidity Pool (5 billion Pi): This portion is reserved to provide liquidity within the Pi ecosystem, enabling smooth transactions and ensuring availability for Pioneers and developers.

Core Team Allocation (20%)

The Pi Core Team receives 20 billion Pi as compensation for their development efforts and ongoing network maintenance. This allocation unlocks at a rate matching community mining progress and may be subject to additional lock conditions imposed by the team itself.

Mining Reward Structure

Pi Network implements a declining reward structure to incentivize early participation while ensuring long-term sustainability:

• Declining Annual Supply Cap: The annual cap for mining rewards decreases over time, with each annual cap lower than the previous one.
• Granular Time Epochs: Supply caps may be calculated on a daily or smaller time basis, depending on factors such as lock ratios and remaining supply.
• Enhanced Rewards for Various Contributions: Beyond basic mining, Pioneers earn rewards for other contributions, including app usage, node operation, and Pi locking.

How to Sell Pi Coin

Now that Pi Network has transitioned to the open mainnet and Pi coins are available on various cryptocurrency trading platforms, selling your Pi is a straightforward process. Here is how you can sell your Pi coins:

Step 1: Complete KYC and Migration

Before selling, ensure that you have completed the Know Your Customer (KYC) verification process and successfully migrated your Pi coins from the enclosed mainnet. This step is necessary since only verified and migrated Pi can be transferred to external platforms.

Step 2: Choose a Trading Platform

Several cryptocurrency trading platforms have listed Pi Coin. Choose a platform based on factors such as security, trading fees, and available trading pairs.

Step 3: Transfer Pi to Your Platform Wallet

To sell your Pi coins, you must transfer them from your Pi Network Wallet to your platform wallet:

• Open your Pi Wallet through Pi Browser or mobile app
• Select the "Send" option
• Copy your deposit address from the platform
• Enter this address in your Pi Wallet and specify the amount to transfer
• Confirm the transaction

Step 4: Place a Sell Order

Once your Pi coins appear in your platform wallet:

• Navigate to the trading section and select a trading pair
• Choose between a market order (for immediate sale at current market price) or a limit order (to specify your desired sale price)
• Enter the amount of Pi you wish to sell
• Confirm your order

Step 5: Withdraw Your Funds

After successfully selling your Pi, you can:

• Keep your funds on the platform for future trading
• Convert to other cryptocurrencies
• Transfer back to your bank account by following the platform's fiat withdrawal process

Always remember to secure your accounts with strong passwords and two-factor authentication, and verify all transaction details before confirming transfers.

The Future of Pi Network

Pi Network has transitioned from its enclosed period to an open network phase, marking a significant development in the project's evolution. This transition enables external connectivity to other blockchains and cryptocurrency platforms, allowing Pi coins to be traded and used outside the Pi ecosystem. The network's growth strategy includes expanding the ecosystem of Pi-driven applications through ongoing hackathon programs that fund innovative developments within marketplaces, games, and financial services.

According to the project's roadmap, Pi Network intends to become a global payment system supported by everyday goods and services, with plans to expand node services, develop cross-chain capabilities, and establish strategic partnerships with traditional businesses to accept Pi as payment. With a community of tens of millions of users already established and a focus on real-world utility over speculative trading, Pi Network positions itself as a notable project in the cryptocurrency space with potential for continued mainstream adoption.

Is Pi Network Legitimate or a Scam?

With the explosive growth of cryptocurrency scams, many newcomers rightfully ask: "Is Pi Network legitimate or a scam?" Based on objective analysis, Pi Network exhibits several characteristics that distinguish it from fraudulent projects:

Evidence Supporting Pi Network's Legitimacy:

1. Verified Founding Team: The project was founded by Stanford PhDs with public professional profiles and academic credentials that can be independently verified
2. Gradual Development Approach: Pi Network has followed a cautious development plan over several years
3. No Initial Investment Required: Pi Network does not ask users to invest money, which distinguishes it from schemes requiring upfront payment
4. KYC Verification: The implementation of Know Your Customer verification demonstrates a commitment to regulatory compliance
5. Open Mainnet Achievement: The project has successfully transitioned to mainnet and been listed on legitimate platforms, milestones most fraudulent projects never reach
6. Active Development: Continuous technical development and ecosystem expansion demonstrate long-term commitment

Common Criticisms Addressed:

1. Extended Development Timeline: While some critics point to Pi's long development period, complex blockchain projects often require years to develop secure infrastructure properly
2. Unclear Value: Before platform listing, Pi had no established market value, leading to speculation – however, it now trades on regulated platforms with transparent pricing
3. Mining Mechanics: Some have questioned the smartphone mining process, but Pi uses Stellar Consensus Protocol instead of traditional proof-of-work mining

The transition to an open mainnet and listing on established platforms has significantly strengthened Pi Network's credibility in the cryptocurrency space. As with any digital asset, users should conduct their own research and exercise caution, but the objective evidence indicates that Pi Network is a legitimate blockchain project with real development and growing utility.

Conclusion

Pi Network represents a unique approach to cryptocurrency that prioritizes accessibility, community growth, and real-world utility over speculative trading. By enabling mining through smartphones and building a community-focused ecosystem, Pi has created an entry point for millions of people who would otherwise be excluded from the cryptocurrency revolution. With its transition to an open mainnet and listing on major platforms, Pi coin has begun realizing its vision of becoming a widely adopted digital currency. Whether you are interested in mining, trading, or simply wish to learn about innovative blockchain projects, understanding what is Pi and Pi Network offers a fascinating case study in how cryptocurrency can be reconceived for mainstream adoption.

FAQ

Hvad er definitionen af pi?

Pi is a decentralized cryptocurrency project that enables users to mine and earn pi coins through a mobile app. It utilizes a modified proof-of-work consensus mechanism designed for accessibility, allowing users to participate in network security without traditional mining hardware or significant energy consumption.

Hvordan bruger man pi?

Pi kan bruges til at foretage transaktioner på blockchain-netværket, deltage i smart contracts og tjene gennem mining eller staking. Du kan opbevare Pi i en digital pung og handle den på decentraliserede platforme for at udveksle værdi inden for Web3-økosystemet.