A team of researchers from Stanford University has found a unique way to mine cryptocurrency that could have a massive impact on the perceptions of the industry.
According to its website, Pi Network was designed in part to be the "next generation of web integrated with blockchain" and make the process of mining crypto significantly less energy-intensive.
Cryptocurrency mining is a controversial practice in part because it remains largely unregulated. Mining associated with crypto coins uses massive amounts of power that frequently comes from dirty energy sources such as gas and coal as well as massive amounts of water or coolant resources to help keep its server banks cool and functional.
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The proof-of-work consensus, which bitcoin uses, is considered the most energy-hungry as a result of how complex the verification process is, and proof-of-stake is at the other end of the spectrum, as the Ethereum exchange recently reported its switch to PoS yielded energy savings of over 99%.
Pi Network hopes to be different. It uses its own Stellar Consensus Protocol through a mobile app, drawing on the relatively small computing power of cellphones and tablets to collectively mine for cryptocurrency. It touts itself as a fairer, more distributed crypto network, allowing you to mine pi tokens for free from your phone.
Bitcoin and other cryptocurrencies have reputations as massive drains on resources as well as means by which shady characters can conduct less-than-legal business. A recent report unveiled several crypto mining operations in "grey zones" around Russian territory using massive amounts of dirty energy and funneling funds back to illicit activities and war profiteering. Illegal crypto mining has been accused of causing rolling blackouts in Iran, and an Iowa county recently tabled discussions of building a new mining facility over concerns about pollution and noise.
Many bitcoin mining organizations have been moving to renewable energy and have touted the benefits of bitcoin and renewable energy helping to complement each other's investments, though proof-of-work will always be energy-intensive, with proponents arguing the energy needs are justified for "superior" validation and security.
Pi Network removes many of the environmental concerns, using less energy and generating no noise. Concerns remain about security as the app is scaled up, but the company is optimistic they can be addressed.
"In order to ensure fairness in Pi mining, secure the Pi blockchain, maintain integrity in the Pi ecosystem, and eventually create and safeguard the community-run governance, it is essential to empower real people around the world and disempower malicious actors, bots, or free riders," the company's website says.
All in all, Pi Network is a novel approach to solving a massive problem that has faced the cryptocurrency industry since its inception, and any cryptocurrency with a focus on reducing energy demands is worth watching as a potential game-changer.
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