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JUST IN: The Fundamental Differences Between Pi Blockchain Network and Bitcoin Blockchain - HOKANEWS

 

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JUST IN: The Fundamental Differences Between Pi Blockchain Network and Bitcoin Blockchain - HOKANEWS


hokanews.com - Blockchain has become a breakthrough technology that underlies the cryptocurrency world. Currently, Pi Network and Bitcoin are the two prominent blockchain platforms in the ecosystem. Recently, in an exclusive interview on The Index Podcast, Dr. Chengdiao Fan, an expert in the field of blockchain technology, highlighted the fundamental differences between the two networks.


Principles of Operation of the Pi Network and Bitcoin


Basically, the operational principle of blockchain is managing transactions and ensuring consensus across the network without the need for a central authority. However, the ways in which the two networks achieve this differ significantly.


Bitcoin, as a pioneer cryptocurrency, relies on a Proof of Work (PoW) mechanism. Bitcoin miners must contribute energy and electricity by solving complex mathematical tasks to verify transactions and add new blocks to the blockchain. Although PoW has been shown to ensure strong security, this approach consumes a lot of energy, causing debate about its impact on the environment.


On the other hand, the Pi Network adopts a different Federation consensus algorithm. This network uses a trust graph as a central component to reach consensus. Users who are actively mining Pi on their phones proactively contribute to building this trust graph, which is used to ensure the integrity of the blockchain. This approach is not only more energy efficient, but also allows easier participation for users without facing complex technical hurdles.


Consensus Algorithm Differences


The main difference between the consensus algorithms on the Pi Network and Bitcoin is the resources required to reach a consensus. While Bitcoin requires competing miners to solve time-consuming and expensive mathematical problems, the Pi Network relies on the collective participation of users who contribute their efforts to build a graph of trust.


The PoW algorithm in Bitcoin ensures that miners who invest significant resources have a higher chance of adding new blocks to the blockchain and receiving rewards in Bitcoins. On the other hand, in a Pi Network, the effort that contributes to building a trust graph influences the level of participation and Pi rewards received.


Miner Participation


Miners' participation in the two networks is markedly different. In Bitcoin, miners must have powerful dedicated hardware and a reliable internet connection to compete in the search for new blocks. This led to a small centralization of the large group of miners that dominated the network.


In contrast, the Pi Network prioritizes user participation without any special limitations on hardware. Anyone with a mobile phone that can connect to the internet can participate in building trust graphs and earn Pi rewards. This creates a more decentralized and inclusive environment.


Rewards and Incentives


Bitcoin provides incentives in the form of Bitcoin rewards to miners in return for the effort and resources they invest in mining. However, this also causes stiff competition and increases energy consumption.


Meanwhile, the Pi Network rewards Pi in return to individuals who contribute to building trust graphs. Millions of users have formed this trust graph, which is used to expand Pi mining. This approach ensures a fairer and more sustainable distribution of rewards and incentives.



The future outlook for these two blockchain networks is certainly interesting to consider. Bitcoin has proven itself to be a robust form of digital money and remains a highly valued asset within the cryptocurrency ecosystem. However, increasing concern about the environmental impact of PoW has led to a demand for more environmentally friendly and sustainable alternatives.


This is where the Pi Network comes in as an interesting solution. By leveraging the mass participation of active mobile users, the Pi Network has managed to build a broad trust graph. The success of this Federation consensus model demonstrates the potential to become a more efficient and inclusive blockchain platform.


However, challenges are also faced by the Pi Network. The success of a blockchain depends on the level of participation and trust from its community. Therefore, in order to achieve stability and sustainable growth, the Pi Network must continuously encourage users to actively contribute and participate in its ecosystem.


The fundamental differences between the Pi Network and Bitcoin reflect the diversity in blockchain technology approaches. On the one hand, Bitcoin has become a milestone in the history of cryptocurrencies by relying on strong PoW. On the other hand, the Pi Network opens the door for more inclusive and green participation through its Federation consensus algorithm and trust graph.


As cryptocurrency users, we can reflect on the options available and the impact each network might have. Whether to stick with the security and robustness of PoW over Bitcoin or provide support for alternatives like the Pi Network that promise ongoing rewards and incentives without spending too much energy.


Operational Principles

Bitcoin relies on a Proof of Work (PoW) mechanism that requires miners to contribute energy and electricity through solving complex mathematical tasks. In contrast, the Pi Network uses the Federation consensus algorithm and relies on user participation in building trust graphs as a way to reach consensus.


Consensus Algorithm

PoW in Bitcoin causes high competition between miners resulting in huge energy consumption. The Pi Network, using the Federation algorithm, creates a more energy-efficient and decentralized environment by encouraging mass participation from users.


Miner Participation

Bitcoin miners require expensive and sophisticated specialized hardware, which can lead to centralization. The Pi Network prioritizes user participation without hardware limitations, creating opportunities for everyone to contribute towards building a trust graph.


Rewards and Incentives

Bitcoin gives miners Bitcoin rewards in exchange for the resources they invest. The Pi Network rewards Pi in exchange for participating users building a trust graph, creating a more equitable and sustainable distribution.


Bitcoin and the Pi Network have different approaches to reaching consensus and providing incentives for participation. Bitcoin has proven its safety and robustness as the leading cryptocurrency, however, increasing concern about the environmental impact of PoW has created a demand for greener alternatives. This is where the Pi Network offers interesting solutions with a focus on user participation, energy efficiency and sustainability in incentives.


As a cryptocurrency user, it is important to consider these differences and the impact each network may have in choosing a platform that fits your personal values and preferences. Blockchain technology is constantly evolving, and the options available present opportunities to play a role in shaping the future of finance and technology as a whole. With a better understanding of these two platforms, users can make wise decisions in leveraging blockchain technology for their own benefit and that of society at large.