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We have written about Pi Network before. In that article, we raised a question on whether we should FOMO into Pi Network or stand on the sidelines.
Our conclusion was, given that Pi Network does not eat into user data plans nor cost anything to participate in the network, we thought it is a good idea to join the Pi Network. At the time of this writing, we are mining Pi Network coin on our phone.
In this article, we want to look at some factors on Pi Network to help you decide whether or not you should mine Pi Network coin.
If you are interested in Pi Network, pay particular attention to the utility section below.
Bitcoin’s model is built in such a way that early adopters got hands on a big chunk of bitcoins and those who join later are rewarded less and less to the point that individuals without specialized equipment cannot even dream to mine any bitcoin today.
This hampers the bitcoin adoption seriously since the only way to participate in the bitcoin ecosystem is to buy it if you do not have specialized mining farms.
This creates a big barrier to entry for individuals who are dabbling with the idea of cryptocurrency.
Pi Network wants to change this model.
Their philosophy is embedded into their system design. It includes:
- Simple: Build an intuitive and transparent model
- Fair distribution: Give a critical mass of the world’s population access to Pi
- Scarcity: Create a sense of scarcity to sustain Pi’s price over time
- Meritocratic earning: Reward contributions to build and sustain the network
Mobile First approach
To accommodate mass adoption, Pi Network went with Mobile first approach. In doing so, they made sure that the users data or battery is not drained by Pi Network app.
This eases the resistance users have about installing a cryptocurrency mining app.
The average Pi Network coins you receive will depend on how many people you have referred using your code.
This ‘referral’ model is a time tested one and has contributed to Pi Network growing over 100,000 miners around the world.
Looking at these numbers and how little their advertising has been, it looks like they might actually realize their mission and vision.
Our Mission: Build a cryptocurrency and smart contracts platform secured and operated by everyday people.
Our Vision: Build the world’s most inclusive peer-to-peer marketplace, fueled by Pi, the world’s most widely used cryptocurrency.
Balancing scarcity and access to the network
Pi creates a fixed supply of Pi coins for the first 100 million participants that join the network. These pre-minted coins are then released to these participants over their lifetime on a decreasing function similar to Bitcoin.
Referrals and Developers also will get rewarded. Developers will be rewarded based on the contributions they make to the network.
While the initial miners will get more rewards than those that join later, everyone will have the ability to take part in the Pi network.
Ingenious utility from shared trust, social media, marketplace, DApps
No matter how great the design of a cryptocurrency is, if there is no utility – it will eventually die out.
Pi Network’s utility goals include creating a platform where users can share their collective views which would then be rewarded through Pi Network. Companies like Amazon, Yelp, etc., rely heavily on user data/reviews but users generally do not get anything back. Building a global shared trust space among Pi Network “will facilitate transactions between strangers that would not have otherwise been possible.”
Shared social media space will facilitate Pi Network users to wager their tokens to garner attention of the network.
White paper explains “You can think of the scarce social media channel as Instagram with one global post at a time.”
How much would you pay if you knew that you were going to get the attention of over 100s of thousands of active smartphone users and with over one million App downloads? (as of this writing) Pi Network already has over 100,000 pioneers who applied to act as nodes/supernodes on the Testnet. What if you have an ad that gets displayed before users can hit the ‘mine’ button?
This could bring massive utility to the token. Advertisers will not care if a Pi coin costs 10 cents or 10 million if they are going to get the attention of over 100 million smartphone users in the future.
Pi Network can also, in theory, design the network such that – advertisers only pay for the ads that are viewed.
It is ingenious that Pi App users are already accustomed to going into the app to ‘tap’ on the mining button. In the future, when ads come to the platform – advertisers are going to place their product in front of millions of smartphone users. This is better than Instagram since you are getting one ad a day. We could anticipate bidding type competition for the ad space.
Storefront & payment built in with undivided attention – great utility
The roadmap includes opening a storefront on the app where people can list their products and buy & sell using Pi coin. If you can grab attention of a million users who could trade using Pi Coin, the sales could soar and make it much more attractive to the businesses to advertise on the network. This will in turn increase the utility of the Pi Network in general.
Don’t forget the DApps: in the end Pi Network should also get utility and demand from the DApps that are built on the network.
The more we read into the simple yet genius plan behind Pi Network the more we are convinced that it is totally worth it to join the network (of course, this assumes zero data breaches, hacks, etc.,).
This Stanford trio may have laid the foundation for the most global and inclusive cryptocurrency yet and if everything goes according to the plan – it could disrupt a lot of intermediaries and turn a lot of heads in the process!
Thank you for reading and sharing this article. Stay safe and healthy!
We have used referral codes where available.
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