In the world of cryptocurrencies, mining is one of the important topics of discussion. While Bitcoin introduced us to the concept of decentralized cryptocurrency, Pi Network is showcasing a new way to approach crypto mining, which is developed for smartphones and new users.
Pi Network mining is different from Bitcoin mining because BTC mining requires heavy computing power and high electricity consumption, while Pi Network mining provides a more eco-friendly model. In this comparison, we will explore how both mining methods work and what sets them apart.
What is Pi Network?
Pi Network, which was launched in 2019 by a team of Stanford graduates, is a crypto project developed to be mined through a mobile application without using too much battery or hardware resources. It was developed with the aim of making crypto accessible for all, whether they have technical knowledge or not.
The network uses a consensus algorithm based on the Stellar Consensus Protocol (SCP), which uses a trust-based mechanism rather than energy-intensive proof-of-work (PoW). In this system, users earn rewards by forming “security circles” of verified, trusted individuals.
How Does Pi Coin Mining Work?
Pi coin mining is a straightforward process and does not involve solving hard mathematical problems. It is more about user participation and community building.
Mobile App Download
A user needs to download the Pi Network application from the Play Store and register using the invite code. Its mining session lasts for 24 hours after it loads a few ads, and users must tap a lightning icon once daily to continue earning. For this, they must complete the KYC and 2FA process.
Referral Incentives
By inviting new users through a referral program, users can increase their mining rate. The more active users you have in your referral team, the higher your earnings will be.
Security Circles
To ensure that the network is safe, each user builds a security circle of three to five people they know. This adds a layer of validation and protection against fake activity.
What is Bitcoin Mining?
Bitcoin mining is the process of generating BTC through the verification of transactions via solving complex mathematical puzzles which is integral to the decentralized network’s security. The first miner who confirms the transaction adds a block and receives their share of reward (3.125 BTC per block). It is an expensive operation, as it involves:
- Advanced Equipment: Customized machines such as those made for mining only, like ASICs (Application-Specific Integrated Circuits), are necessary.
- High Electricity Consumption: Bitcoin mining consumes a lot of electricity similar to that consumed by an average town.
- Difficulty Adjustments: When 2016 blocks are added, the network changes the difficulty to make sure the time taken for the addition of a block runs to almost 10 minutes.
Difference Between Pi Network Mining and Bitcoin Mining
Below are some major differences between both the mining processes:
1. Energy and Hardware Requirements
- Bitcoin: It involves the usage of high-energy equipment and the consumption of a large amount of energy, which causes great harm to the environment.
- Pi: You can simply open it on your mobile without damaging the battery or using up all of the daily internet quota, which means it is incredibly environmentally friendly.
2. Barrier to Entry
- Bitcoin: While using Bitcoin for transactions is accessible with a simple wallet, participating in mining does require expensive hardware and technical skills. Users require high capital, knowledge of technology, and the right hardware to run a mining operation.
- Pi: People can mine using their mobile phones, and almost anyone with a phone and an invitation can do it. It opens opportunities for all people and eases the entry level.
3. Security Mechanism
- Bitcoin: It depends on computational power for the security of the network. The higher the hashrate, the more secure the network will be.
- Pi: Uses a web of trust, where users confirm for each other in security circles. The social-based model operates on the assumption of the user’s reliability to preserve the network’s stability.
4. Mining Incentives
- Bitcoin: The miners are incentivized with freshly issued BTC and get a transaction fee for the efforts spent.
- Pi: The rewards are determined by calculating user engagements, referrals, and trust. The system consumes far less electricity than Bitcoin and doesn’t charge transaction fees on the mined PI.
5. Reward Rate
- Bitcoin: The current reward is 3.125 BTC per block that is created about every 10 minutes by the miner who successfully adds a new block to the blockchain.
- Pi: The current base mining rate is somewhere around 0.0030 PI per hour for active users, and it can be higher or lower based on referral and lockup bonuses.
6. Network Maturity and Liquidity
- Bitcoin: It is mature, widely accepted, and has a fully developed ecosystem. It is easily traded on all major exchanges.
- Pi: It is still in the early stage and is only in a limited liquidity phase. Although the mainnet has launched, full trading access across platforms is not yet available.
Conclusion
The Pi Network mining process is a revolutionary effort in the field of cryptocurrency mining, as it seeks to enable users with mobile phones to mine coins without using energy-consuming machines. Pi’s idea of making the mining process less complicated is in stark contrast to the traditional method of Bitcoin.
However, while the ease of mining Pi coins is attractive, it is important to remember that the network is still in its growing phase. For now, Bitcoin remains the gold standard of decentralized finance, but projects like Pi Network are pushing the boundaries of what’s possible in the crypto space.
Also Read: Bitcoin Mining Costs Skyrocket in Q2 2025 Amid Rising Hashrate
