Pi Network Approaching Open Network: Opportunities, Risks, and Impacts on the Ecosystem

Pi Network is a cryptocurrency project that allows users to mine Pi coins directly from mobile devices without requiring powerful hardware or consuming a lot of energy like traditional cryptocurrencies. As of January 2025, Pi Network is believed to have reached over 100 million global users, inferred from 100 million app downloads, although this figure is still controversial. In the Pi Network ecosystem, users - called “pioneers” - not only mine Pi but also verify transactions and support the network’s development. They can conduct peer-to-peer transactions, participate in decentralized application (DApps) development, and play a crucial role in the journey towards Open Network. How to mine Pi on mobile Unique mining mechanism Pi Network applies a new and unique mining method, different from traditional cryptocurrencies like Bitcoin or Ethereum. Users can mine Pi directly on their phones without the need for energy-consuming hardware. This mechanism is implemented through the Stellar Consensus Protocol (SCP), instead of the Proof of Work (PoW) mechanism like Bitcoin. SCP operates on a trust-based network (trust-based network), eliminating the need for large energy consumption as in traditional mining systems. Thanks to that, mining Pi does not heat up the device, does not consume battery, and does not require the application to run continuously in the background. Users only need to press a button once a day to maintain the mining session. Mining process Download the Pi Network app and create an account. Start mining by clicking the mining button once every 24 hours. No need to keep the app running continuously - the system will continue to operate even when the app is closed. No data or machine resources are consumed - just press the button once to maintain the mining process. How to increase mining speed Pi Network rewards users based on their contribution to the ecosystem. Acceleration methods include: Build a security circle: Adding reliable members to the security circle helps enhance network security. Each active member can increase mining speed by up to 20% compared to the base level, with a maximum of 5 members. Welcome new users: When inviting more people to join the Pi Network, the inviter will receive 25% of the new member's mining speed if they mine actively. Interact with DApps in the Pi ecosystem: Participating in using decentralized applications (DApps) in the network helps to increase the utility of Pi and can receive additional mining rewards. Convert to Open Network On February 20, 2025, Pi Network is expected to launch the Open Network mainnet, marking an important development. The development of the network consists of stages from beta (ra launch of mobile mining application on March 14, 2019) to testnet (kiểm blockchain testing and consensus algorithm from March 14, 2020). The closed mainnet phase started in December 2021 with the official network operating but limited to transactions, unable to connect to other blockchains. During this phase, users can perform KYC (xác tính) identity and transfer Pi to the official blockchain while the community develops the application. When entering the open network phase on February 20, 2025, the limits will be removed, allowing Pi transactions on other blockchains. Impact of the open network on Pi users The official network open brings many important changes for those holding Pi. Users can transfer Pi to external wallets and use them for real transactions. The possibility of listing on exchanges helps Pi to be traded on major cryptocurrency exchanges, increasing liquidity and market value. Expanding the DApps ecosystem also provides opportunities for developers to build applications on the Pi blockchain, bringing more benefits to the Pi community. To participate in the open network, users must complete identity verification (KYC) to ensure transparency and security. Before Pi officially goes public, its value is still speculative. Some IOU trading platforms have recorded prices from 61 - 70 USD, but this is not the actual value when Pi is officially listed. Market and Risk In addition to the potential, Pi Network also carries many risks. The number of users may be inflated when the project claims to have over 100 million users, but the blockchain data only records 9.11 million active wallets and 18 million users have KYC. This could lead to lower acceptance levels than expected. In addition, the Pi supply has doubled in a year, currently reaching 5.56 billion Pi with no clear limit. When Pi is traded on the exchange, the excessive supply could cause a sharp price drop. The liquidity of Pi is still not guaranteed as it cannot currently be traded. When the network is launched, the price may drop if there are too many people selling off. In addition, despite being promoted as a decentralized network, Pi Network is still controlled by the founding team and does not have an independent verification system. The development team may change the rules or delay features at any time. The KYC requirement also raises the risk of personal data security, especially when Pi Network can use the advertising model to make money. If the data is abused, users may face privacy issues. The transition to an open network is a significant milestone for the Pi Network. However, there are still many risks regarding liquidity, centralization of control, and the risk of inflation. Users need to carefully consider, monitor information, and not have overly high expectations for the value of Pi when listed on the exchange.