Cryptocurrency, which is digital or virtual cash, has become very popular in the last ten years, with Bitcoin and Ethereum comprising over half of the cryptocurrency market. But still the possibility of new digital currencies popping up, and among them one of the most popular is Pi Network with its Pi Coin. This app-based digital coin has gained an enormous fan base; however, the one big question is: Will Pi Coin be able to stand up to Bitcoin & Ethereum in the long run?
Table of Contents
What is Pi Coin?
Pi Coin is the native cryptocurrency of Pi Network, it is a blockchain project created by Stanford University graduates in 2019. Contrary to Bitcoin and Ethereum, which use high-performance computers and operate with proof-of-work systems, Pi instead uses a mobile phone system to produce coins. Users can mine Pi coins by using a quite simple app that will eat very little of the battery and data. This app is perfect for your users.
How Does Pi Coin Compare to Bitcoin and Ethereum?
We will analyze the major aspects to find out whether Pi Coin could compete with Bitcoin and Ethereum.
- Decentralization and Security
Decentralization and Security Blockchain operations using Bitcoin and Ethereum allow secure and decentralized topological systems with thousands of nodes in all corners of the globe. Essentially, these networks are as secure and decentralized as technically possible, which makes them impervious to common weaknesses such as hacking and safety breaches.
Pi Coin, on the other end talking of their decentralization aspiration, today’s Pi network system is almost centralized since the developers are in control of the network. It will hardly be considered as secure as Bitcoin or Ethereum.
- Mining and Accessibility
Bitcoin mining is a high-cost affair that the average person would not be able to afford because it requires a high computing capacity. Ethereum is now in the process of switching to a proof-of-stake method (Ethereum 2.0) where the users stake their coins instead of mining, which makes the process environmentally friendly but it could take time to proceed to the new system.
Pi Coin, on the other hand, is mined by a mobile phone, so it is very popular among people from all over the world. This may be the unique proposition of Pi cryptocurrencies that will allow millions of users to mine and hold cryptocurrencies without any technical knowledge.
- Smart Contracts and Use Cases
Ethereum is considered the king of smart contracts and has revolutionized the crypto space. It accomplishes this by allowing developers to create decentralized applications that can be run on its blockchain. The development of decentralized finance (DeFi), NFTs and more are an immediate consequence of this development.
Pi Coin so far is unable to incorporate smart contracts. However, without a vibrant developer ecosystem and adoption, Pi Coin will find competing with Ethereum a tricky task in this area.
- Market Adoption and Value
Bitcoin earns a lot of appreciation and is already called the “digital gold” because of its extensive adoption as a value store. At the same time, Ethereum is developing the technologies that are making thousands of decentralized apps work.
Challenges for Pi Coin
While Pi Coin has great potential, it faces several challenges:
Regulatory Uncertainty: The rulings of many governments on cryptos have been very stringent. The network can have issues with acceptance unless it complies with the regulations.
Lack of Real Utility: As distinct from Bitcoin and Ethereum which serve as a payment solution and a smart contracts platform, Pi Coin can only function in several limited scenarios.
Delayed Mainnet Launch: Pi will remain a hypothesis until it realizes a blockchain technology communication system. Users must be patient to see it turning from a centralized network to a decentralized system.
Will the progress of Pi Coin rise to the challenge or will it dive into obscurity?
Pi Coin has an extended and still-increasing community, with mobile mining giving the most optimized results. But Pi Network’s driving force will be blockchain, which is distributed, smart contract, and utility possibilities, shall suffer more if they do not continue throughout the project. As far as the current situation is concerned, we might consider Pi as a piping project in the future, but for this to be a serious competitor to the Goliath rehab habitations, it still has a long way to go. For further information and updated content, you can also visit our website.
