Has Pie Money really adopted blockchain technology?

Has Pie Money really adopted blockchain technology?

With the rapid development of the cryptocurrency market, many blockchain projects are emerging, among which Pi Network is one of the representatives that has attracted a lot of attention. However, there are still a lot of questions and controversies in the market about whether Pi Network actually utilizes blockchain technology. Today, we are going to explore the operation of Pi Network, analyze whether Pi Network really utilizes blockchain technology, and analyze the technical framework and development potential behind Pi Network.

Background of Pie Currency

Pi Network is a cryptocurrency project that attracts a large number of users to register and participate under the slogan of "simple mining". The main feature of Pi Network is that it doesn't require the high-performance hardware needed for traditional mining, but rather "mines" through a mobile app, which makes it easy for many ordinary users to participate. The project was founded in 2019 by three PhD students at Stanford University and claims to be bringing cryptocurrency to a wider audience.

Nevertheless, it has been a point of contention whether PaiCoin really possesses the blockchain technology and can realize decentralized operation in the future, as it has been advertised. Many users and professionals are still skeptical about the technical framework behind it, and this is an issue that we will explore in depth in this article.

Does Pie Coin use blockchain technology?

PieCoin's self-declared original purpose is to operate on the basis of blockchain technology. Blockchain is essentially a decentralized, decentralized ledger technology that ensures the security and non-tamperability of transactions through cryptography. Based on publicly available information, PaiMoney's mode of operation did not fully meet the criteria for blockchain technology in its early years.

The "mining" process of PaiCoin is not entirely based on the consensus mechanism of blockchain (e.g., Bitcoin's Proof of Work), but rather adopts a management model similar to that of a centralized server, with the development team controlling its internal operating environment. This differs from traditional blockchain projects. In other words, PieCoin does not have all the transparency and decentralization characteristics of a blockchain project in its early stages.

Why?
In fact, the development team of PaiMoney has its own specific considerations, because the operation of the blockchain requires huge computing power and resource consumption, and one of the goals of PaiMoney is to enable every cell phone user to participate in it. Therefore, the initial design chose a lighter technical route, which somehow compromises the process of mobile phone users' participation in mining with the operation of the blockchain.

Blockchain Functionality Development of Pie Coins

As the PieCoin project progressed, the developers began to address the issue of its blockchainization. in 2021, PieCoin announced that its mainnet would be launched in time and would actually run on the blockchain. This move is seen as an important step in the project's development towards a truly decentralized, blockchain-based technology.

In this process, PaiMin chose a consensus mechanism called "Stellar Consensus Protocol" (SCP), which is a relatively lightweight and efficient consensus algorithm. This is a relatively lightweight and efficient consensus algorithm, which is more energy-efficient and supports efficient transaction processing than Bitcoin's Proof of Work (PoW) mechanism, a relatively advanced consensus mechanism in the blockchain space that allows more devices to participate without consuming as much resources as Bitcoin.

Therefore, although PieCoin was not initially fully compatible with how blockchain works, it still plans to further expand and implement blockchaining in the future, which means it is heading in a direction that is consistent with the long-term trend of blockchain technology.

The problem of decentralization of Paiwanese coins

Many people are skeptical about whether PieCoin can be truly decentralized. Decentralization is one of the core features of blockchain technology, meaning that the blockchain system is not controlled by any single organization or entity, and transactions and records are maintained by nodes around the world. The decentralization of PaiMoney is still not high, mainly in two aspects:

1. Current server control issues
Although the developers of PieCoin have stated that it will be completely decentralized in the future, for the time being, PieCoin's operation still relies on servers controlled by the development team. This makes the operation of PieCoin somewhat centralized.

2. User trust issues
Even though PieCoin has announced that it will be decentralized in the future, many users are still skeptical about the motives and promises of the development team, and are worried that PieCoin will be manipulated by certain groups or interests in the future.

Therefore, despite the fact that PieCoin is moving towards decentralization, there are still certain technical and trust barriers.

The Future of Pie Currency Technology

Whether PaiMoney will be able to achieve true decentralization and globalization based on blockchain technology in the future is still unknown. According to the official statement, with the launch of the main PaiMoney website, developers will continue to improve the performance and stability of their blockchain. This means that PieCoin is likely to implement more core blockchain functions, such as smart contracts and decentralized financial (DeFi) applications.

Whether PaiCoin can stand firm in the competitive marketplace still depends on whether it can successfully overcome the technical hurdles and establish a stable ecosystem. If it can successfully implement blockchaining and gain the trust of users around the world, its future potential is unlimited.

Frequently Asked Questions Q&A

Q1: Is Paiwanese coins currently available on the main website?
Currently, the main network of PaiMoney is still in the testing stage, and the developers are still actively improving the system. Users are able to participate mainly in the test network, and have not formally entered the main network of the blockchain operation.

Q2: Is PaiMoney mined in the same way as traditional cryptocurrencies?
It's not the same. Unlike Bitcoin's Proof-of-Work (PoW) mechanism, PaiCoin is mined using lightweight mining performed by a mobile app, and is not currently based entirely on the blockchain consensus mechanism.

Q3: Can I trade Pai Gow for cash?
Currently, PaiMoney has not been officially entered into the exchange and its liquidity is relatively poor. Whether users can successfully convert PaiMoney into cash depends on the future development of the main network.