The SuperNode authentication mechanism raises doubts about the decentralization of the blockchain because it is still controlled by the Pi Network team behind it.
"Can anyone running a Node or SuperNode explain to me what it is? Anyone who has run it, please give me some experience," an account asked on the Reddit forum.
Shortly after, an account claiming to be from the Pi Core Team (PCT) - the team behind the Pi Network project - gave an answer. However, the content was assessed as vague because it only explained the technical role of the SuperNode but did not describe how users can operate it.
Meanwhile, many Node runners also said that for many months, they did not receive Pi rewards - the amount of Pi increased when operating a Node. Some suspected that only people with internal connections or high-end hardware were eligible, contrary to Pi Network's claim that it is "an accessible cryptocurrency solution for everyone". They also question whether if participation is limited, Pi Network is still "giving out" tokens by the team behind it, thereby not truly decentralized.
How Pi Node Works.
Pi Node, or Pi network node, is software running on a computer that creates and stores Pi. Unlike the Pi Network application on smartphones that only plays the role of registration, login, account recovery and the main purpose is to "check in" to receive Pi, Pi Node also has the task of confirming transactions in the Pi blockchain system.
If Bitcoin or Ethereum mining is based on the Proof of Work algorithm, that is, calculating to receive rewards, Pi Node's blockchain uses the Stellar Consensus Protocol (SCP) algorithm. With SCP, Nodes are trusted groups of validators and only agree to transactions that other nodes accept. Through the "security circle", Nodes determine who can or cannot validate transactions on the Pi Network blockchain ledger. To operate reliably, Nodes need to be online as much as possible and limit shutdowns.
In a new update for Nodes in early March, along with the Open Network, PCT continued to introduce the concept of SuperNodes. "SuperNodes are the backbone of Pi's blockchain, responsible for reaching algorithmic consensus to correctly record transactions on the Pi ledger, in addition to the responsibilities that a Node performs. They are also responsible for ensuring that SuperNodes and other Nodes have the latest state of the blockchain," the Pi Network website states. "SuperNodes also use the Node interface and were initially chosen by PCT. They need to be connected to the network 24/7 and have a reliable Internet connection.
According to CoinPedia, the emergence of SuperNodes has raised concerns about the Pi Network's structure. Many people question whether Pi Network is decentralized or just a centrally controlled system, and PCT can influence from behind the scenes instead of actually empowering Nodes or SuperNodes.
In fact, recent statistics show that PCT is controlling SuperNodes that validate transactions after the network is launched. Unlike Bitcoin or Ethereum, which rely on thousands of independent validating nodes, the Pi network is tightly managed by PCT.
According to data from PiScan, there were initially three SuperNodes in existence and were operated by PCT in Canada and Finland. The number has now increased to 42, but the team has not provided a full list or options for Node runners, while still controlling them, which has left them confused. For comparison, Bitcoin has more than 21,000 nodes, Ethereum has more than 6,600 nodes, and Solana has about 4,800 nodes.
"With so few validators, decision-making power is limited to a select few. This makes the network more centralized rather than decentralized like its competitors," Brave New Coin commented.
According to data from PiScan, 62.8 billion Pi is stored in 6 wallets controlled by the PCT core team, while another 20 billion Pi is in 1,000 wallets "associated" with the group. "This means that only a small group of insiders control the majority of the supply, leaving little for true decentralization," the site commented.
The Pi Network team has not yet responded to requests for comment.
Project continues to be questioned.
In nine posts on X, Justin Bons, founder and CIO of Cyber ​​Capital and a well-known cryptocurrency analyst, openly called Pi Network a scam.
"Warning: Pi is a blatant scam," Bons wrote on March 20. "Creating a mobile-based 'mining' software is a gimmick, as it does not actually contribute to the so-called 'consensus'. It is completely controlled, even for simple transactions. Pi is an investment scam."
In subsequent posts, the expert pointed out that although Pi Network claims to be decentralized, it is actually controlled by the team behind it. "Pi's core technology is simply copied from Stellar but completely messed up. The project also operates under a multi-level marketing scheme, through referrals from one person to another. The 'mining' feature they say is nonsense, for ignorant investors."
According to the founder of Cyber ​​Capital, the "Pi lock" mechanism, which Pi Network offers to speed up mining, operates in a non-transparent manner, "designed to lock in victims and pump up the price so that insiders can escape." He also pointed out that the "insiders" are the development team behind it - members who he considers "mysterious and very little information."
The Pi Network team did not comment. However, in a separate article on X on March 24, the group said they are "working tirelessly behind closed doors to give Pi the value it deserves."
Previously, the founder and CEO of the Bybit cryptocurrency exchange Ben Zhou also stated that Pi Network is a scam project.
Pi Network was launched in 2019, advertised to help participants own free Pi virtual currency by going to the phone application to "press the lightning bolt" to check in every day. Vietnam is one of the markets with many people participating in "Pi mining". The project caused controversy when it took nearly six years to "open the network", meaning it allowed users to move Pi to other platforms for exchange and trading from February 20. The price of this cryptocurrency has now dropped sharply from a peak of 3 USD last month to below 1 USD.
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