Hello everyone, I would like to answer some questions from my friends, I think it is also the common questions of many people. Basic or more detailed information about Pi Network’s policies has been posted a lot in their official website, so in this article I will not repost them, nor go into the technical part, but just share some more information. based on my personal opinion and knowledge. If you have any information or want to add more comments, please comment below this article!
Does Pi Network work as “multi-level marketing”?
- Multi-level marketing builds a network like the pyramid, your network has many floors, assuming you are F1, you can have F2, F3,… Fn. Participants enjoy direct and indirect sales commissions from people at lower levels not directly with you.
- Pi Network builds a direct, peer-to-peer network, which means you only know the person you invite, and the person you invite only knows you. For example, for every 0.1 Pi you mined, system will give 0.02 Pi to the person who invited you. And, when the person invites you to mine Pi, system also gives you 0.02 Pi, which is not available in the multi-level marketing model. Similarly, when the person you invite has mined 0.1 Pi, only you will be rewarded with 0.02 Pi. That’s all.
Why does Pi Network have to reward the person who invites you for mining?
This is to motivate you to earn more Pi. The purpose of this policy is to encourage serious expansion of the number of participants to build a valuable and widespread Pi Network ecosystem in the future.
Does system takes some Pi coins I earned to reward the person who invites me?
No. System only rewards Pi for the person who invites you from the resource.
Does Pi Network want to build a large community of participants? Why?
- That’s right! More people join the community, more valuable Pi-coin will be. Just as the USD is the most valuable currency (please don’t misunderstand the value and the rate), because it is used for the most transactions in the world.
- Pi Network mission is to bring the most popular approach to cryptocurrency for the people.
Can I create multiple accounts to participate in Pi mining?
- According to Pi Network’s policy, 1 person = 1 account, when creating account, Pi app will ask you to verify your account with your phone number and email first, and then later authenticate with your identification document called KYC.
- KYC is the final authentication step, you will be required to prove your identity by identification documents such as identity, passport, driver’s license, currently Pi Network verifies your identity through a third-party service. That’s Yoti. Your information is completely kept confidential by this service.
Are Pi Network resources limited?
- Currently, there is no official information from the founding team about whether limit total supply of Pi. However, Pi mining will slow down over time, and may stop mobile mining once Pi Network enters the Main-net.
- Pi Network was born in March 2019, at that time it was possible to mine 3.0 Pi per hour, until I writing this article the mining speed is only 0.1 Pi/h.
Why do people have to invest in expensive Bitcoin miners but Pi mining only uses phones?
- Bitcoin runs a proof-of-work algorithm, taking the energy consumption of decoding pre-programmed calculations as proof of the creation of Bitcoin, as more and more miners, the difficulty of the algorithm would be higher, so a computer with more computationally power is needed to solve this.
- Pi Network uses the SCP consensus algorithm, I will have a detailed article about this later, but for now you can temporarily understand that the value of Pi is created based on the consensus of the community participating in Pi Network. Therefore, it can be said that Pi Network does not need to run on powerful devices, but needs many participants.
Why is the Pi mining on mobile phone supposed to be battery free and not be hot?
- In the FAQ section, I see “Pi does not affect to performance of the phone”, I think, “doesn’t consume battery” here can be understood as low battery consumption, negligible, but no application run without energy consumption.
- You can close Pi mining app after pressing the mining button (). When you open the app, it runs, connects to the network, and consumes energy at this moment.
- According to Pi’s FAQ, instead of using proof-of-work like Bitcoin (a mechanism that requires the computer to process a math algorythm before posting information on the network, this will cause the processor to operate consuming energy a lot). Pi Network secures its ledger through its members assuring each other is trustworthy, using the Circle of Security mechanism.
What is a Circle of Security?
The Security Circle in Pi Network is a circle of trust created by each of the pioneers of Pi Network. This circle consists of 3 to 5 people that trust and know the person who creates it. It’s the best to add some friends that close to you and are in your Pi mining network.
Is the Pi Network app a personal data mining software?
- Pi is a cryptocurrency, so they ask you to provide some of the most basic information about you, to ensure future financial transactions such as buying, selling, exchanging are not fraudulent or fake, this is necessary.
- The information that Pi Network requires you to provide is: phone number, email, full name and you must ensure that the information is real.
- The usual apps you use for online shopping, social networking and chat applications, or Internet Banking applications of banks, or even, some games that you are using requires you to provide the above information, and more detailed information about you. Therefore, your personal data may still be kept or exploited by these applications. In other words, your personal information has been “stolen” before joining Pi Network.
- In short, beyond the basic information you use to introduce yourself and to sign up for an account, Pi Network doesn’t ask you to share the private, sensitive information or access folders of images, nor any personal documents are in your phone so there’s nothing to worry about this.
Why do I turn off Pi mining app, even turn off my phone, but the Pi number keeps increasing without seeming to stop?
Unlike a centralized data storage system like banks, where all financial transactions are stored and processed centrally on a server, Pi Network uses blockchain technology, which is a type of database. distributed (decentralized), it distributes processing to all active servers in the network, called Pi Node, there are more than 14000 active nodes in the world currently. When you open the app and press the button, your phone only sends the signal once a day and nodes handle the calculation, storing and creating Pi coins for you.
Why do I have to press the mining button () every day?
When you press the mining button (), the Pi app sends data to the network, declaring that you have just started a new mining session, it will end after 24 hours. During the mining session, system will continuously to add accumulative Pi to your account according to a certain formula based on the mining speed. As you invite more friends to join your mining network, your mining speed will increase.
Is Pi Network a scam project? Do I lose anything if I join?
You can mine Pi coins on the Pi Network mining app at no cost, it will take some minutes to install the app and verify your account, and more 10 seconds a day to hit the mining button. For me, it’s not a financial loss, in case Pi has no value, it likes a game, so it’s not a scam.
So, is Pi Network a free opportunity to get rich?
- Up to now, the founding team of Pi Network announced that there are 18 million miners, the opportunity is spread evenly and Pi has not been listed on exchanges, we don’t know exactly how Pi pricing will be. You are mining Pi with a daily press of the button and you will get a basic amount of Pi by your self, is 2.88 Pi. Suppose that Pi listed on exchanges for $1/pi and you have a few hundreds of Pi, you can sell it for a few hundred dollars that is quite easy. However, to earn more 10 or 100 times that basic number, you cannot mine alone, but need a team of many, maybe tens or hundreds of people. At this point, you need to invest more time, to meet some friends, share information, invite them to cooperate. Some people have to make Youtube video clips, making websites, blog (like I am doing), want to have passive income, have to set up Pi Node (This is an advanced part, I will share it in another article).
- In fact, when you make a cup of coffee to enjoy yourself, it’s easy, but when you open a cafe to serve many people, to run a coffee business, you will need a relatively large capital, a lot of time , effort and thought a lot to maintain the operation of the shop, right?
- In short, not to mention getting rich, just talking about making a lot of money, basically still requires investment, but the most important factor to have is perseverance.