Pi Network: A New Approach to Cryptocurrency Mining

Pi Network is an innovative blockchain project designed to make cryptocurrency mining accessible to the everyday user. Launched in 2019 by graduates of Stanford, the initiative eliminates the need for specialised hardware or technical expertise, offering an alternative to Bitcoin’s expensive mining model. Users can mine Pi by verifying their presence on the app daily, a process far simpler than traditional mining. Instead of relying on Bitcoin’s energy-intensive proof-of-work system, Pi employs the Stellar Consensus Protocol and builds trust circles by connecting 3-5 reliable members. These trusted networks form a global trust graph, securing transactions without relying on vast computing power.

The mining process rewards users for different contributions. Daily check-ins earn base rewards, while growing trust circles and running full nodes on computers bring additional bonuses. App usage and locking up Pi are also incentivised to foster ecosystem development. Since 2021, Pi has operated on its Mainnet blockchain under an “enclosed” phase. During this time, users must undergo a KYC (Know Your Customer) verification to transfer their mined Pi. However, the project plans to introduce an “open network” phase, allowing unrestricted connectivity and further blockchain integration.

Pi Network operates through four key roles: Pioneers, Contributors, Ambassadors and Node Operators. Pioneers mine Pi by daily check-ins, while Contributors establish security layers by forming trusted circles. Ambassadors grow the user base by inviting others, and Node Operators maintain network integrity by running validation nodes. The system uses trust relationships rather than complex mining operations, ensuring energy efficiency. Mining Pi can be done using just a smartphone, making it accessible to anyone regardless of their technical background or financial means.

Pi coins are intended for use within Pi’s ecosystem, allowing peer-to-peer transfers or purchases on Pi-supported marketplaces. Developers are encouraged to create apps integrating Pi payments, supported by hackathons fostering innovation. Nodes support the blockchain by validating transactions and maintaining network security. Node operators must ensure their nodes remain online, with performance measured by uptime and technical contributions.

While Pi Network reduces technical and financial barriers, challenges remain. Limited external trading, KYC bottlenecks, competition from other cryptocurrencies, and the need to expand real-world applications pose risks. Despite this, Pi aims to grow into a global payment system, supporting everyday goods and services while establishing strategic partnerships and cross-chain capabilities.