There are many concepts worth keeping an eye on in the cryptocurrency world. One of them is the mobile cryptocurrency mining concept, first introduced by Pi. Users of the Pi Network, a new mobile application developed by a team of Stanford graduates, can earn the Pi cryptocurrency on their mobile phones.
In the early days of Bitcoin, a lot of users were able to mine the digital currency very easily, by running a BTC mining app on their PC. Following the rise in Bitcoin’s market, many companies began to mine the cryptocurrency with specialized computer chips called application specific integrated circuit (ASIC) miners.
This large-scale Bitcoin mining created a monopoly in the industry, making it difficult for everyday users to mine the cryptocurrency. Bitmain, a privately owned company based in China, made a fortune from mining Bitcoin.
According to various reports, just 1 percent of the large network of BTC miners own 87 percent of the cryptocurrency. This centralization of power in the Bitcoin network is a barrier to the mainstream adoption of the digital currency, making it very expensive for the average person.
The Stellar Consensus Protocol (SCP)
Pi’s core team integrated the Stellar Consensus Protocol (SCP). This is a user-friendly system which enables users to easily mine Pi cryptocurrency on their smartphone without using much data or battery power.
The stellar consensus protocol was developed by David Mazieres, a Computer Science professor at Stanford University, California. It is a federated byzantine agreement system which enables all decentralized networks to reach a common agreement on a particular decision. And it is deployed via the Stellar Blockchain.
Pi Network allows users to adjust the protocol level of the Stellar Network, which mainly consists of big financial institutions and companies as nodes. This way, people can easily start mining cryptocurrency on mobile, using their smartphones, laptop, or PC.
Setting up Pi cryptocurrency mining on smartphones
When a user logs into the Pi Network on his or her phone, the application establishes a connection with the nodes in the Stellar Network and checks whether the ledger has been recorded. After connecting to multiple nodes, the app then crosschecks the hash value and the block number.
Pi Network makes use of an algorithm to reward new Pi miners, giving them more shares than older miners. However, the amount is going to reduce as more and more people get added to the network.
This mobile application is still in the testing phase, during which the development team is doing all they can to make it more user-friendly and to improve its overall user experience. The network is going to be launched after the promotion phase of the decentralized network ends.
There’s no need for users to worry about losing the cryptocurrency they have earned in the early phase because their account balances are going to be moved to the live network.
It should be noted that Pi is not yet available on exchanges and can only be mined using the mobile application.