'Pi' - The Newest Cryptocurrency on the Block
Cryptocurrency has been the talk of the town for some time now and has further strengthened its cause after showing minimal value fluctuation even with this pandemic upon us. Cryptocurrencies have continued to fulfil their promise and have captured a vast network of investors in the process of expanding their community. The more conventional cryptocurrencies have started gaining much more legitimacy while new ones with great potential pop up sometimes. One such new cryptocurrency is ‘Pi’ which brings about many new functionalities. ‘Pi’ was launched on 14th March 2019 [Pi Day :)] by a group of Stanford graduates to have a cryptocurrency that can be mined on a primitive device as opposed to traditional cryptocurrency mining setups.
If you aren’t aware, cryptocurrencies generally function on hashing algorithms and blockchain technology where a community of miners regulate every block and record transaction details on these blocks, also known as ledgers. In the case of ‘Pi’, we see a shift from the traditional method of a single miner regulating the authenticity of a transaction requiring computational power from the miner’s device to know various nodes voting towards the authenticity of a transaction while also providing computational power from their devices. ‘Pi’ has a lower requirement for computational power than other conventional cryptocurrencies. This makes it possible to have a lot of functionalities related to ‘Pi’ available to you on devices like mobile phones that are lower in the processing power food chain.
The Pi network has several roles similar to miners, etc in conventional cryptocurrencies. There are namely four roles- Pioneer, Contributor, Ambassador, Node. A pioneer is a user on the Pi network who is supposed to prove their authenticity regularly to stay on the network. A contributor confirms the authenticity of pioneers on the network. An ambassador integrates new users into the network. A node is an outlet providing computational power to run algorithms for the network also voting on the authenticity of different transactions. A user on the Pi network can perform all of these roles. Pi network operates on the Stellar Consensus Protocol (SCP) which requires users on the network acting as pioneers to regularly prove their authenticity through consensus i.e., approval from other users acting as contributors. At the moment ‘Pi’ is still expanding its user base but faces stiff competition from obvious stalwarts in the industry like Bitcoin who have the numbers in their favour. But considering Pi network’s promise of making cryptocurrency much more accessible and convenient to mine, it is on a higher ground than Bitcoin, Litecoin, etc. ‘Pi’ has the potential to lead the cryptocurrency revolution and perhaps establish a new threshold for cryptocurrencies in the future.
About the Author: Arryan Singh is a Second Year Computer Engineering student at RAIT.