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Preliminary Analysis of MinePi Crypto

  • View the white paper here: https://minepi.com/white-paper.
  • View the site here: https://minepi.com.
  • Download the app from the store and use haydenrear as invite code to investigate. You can only sign up once (the system will flag duplicate accounts)

This is a Cryptocurrency created by some Stanford graduates so that anyone can mine “Pi” from their phone, by being a member, for free. “Pi” is the name of currency. Try it out. The affiliate offers for this coin do not increase exponentially, and, in fact, the number of possible pi is fixed for each of the 100 million users:

In contrast to Bitcoin which created a fixed supply of coins for the entire global population, Pi creates a fixed supply of Pi for each person that joins the network up to the first 100 Million participants..

This is through the grapevine, but someone in the chat said that monetization would begin sometime in March of 2020. There is a chat in the app that you get added to. The future of the coin depends, to a certain extent, on the ability of the community to innovate. In the white paper, it talks about purchasing our attention.

Getting paid for your data, and removing the middle man between the content creator and the end consumer, freeing up the capital to allow content creators and consumers to get a better deal. By removing the middle man. Is it a pipe dream meant to garner attention, and thus users, without credibility? Or is this a golden opportunity of mass adoption, and we are cashing out on the research done by Stellar developers.

Project Libra by Stanford to Avoid Regulators

If Libra was a project built for Facebook, then maybe Stanford copied it into a social app and made it this. This is like the blockchain version of VenMo, with rules like a central authority built into it through the ability to aggregate preferences quickly, easily, and cheaply. That central authority determined through voting rights of the community of nodes, introducing a fault tolerance for each transaction. Apparently, as we move towards more users, the distribution of power through the nodes in the community will progressively decrease the need for any semblance of a governing authority, because of the ability of the system to identify problem transactions. And it is free right now because we are so early on in the development cycle.

Okay, this is like Bitcoin, right?

Consider that the price of Bitcoin was tied up with how much power someone is willing to exert to calculate the next block of the transaction (how much it costs to “mine”, with the power, as well as the depreciation costs of the mining machine), a function of the cost of the bitcoin, which is a function of the demand. It is so expensive to mine bitcoin that there are high transaction fees, and long lag times, when you have to wait for the transaction to go through. Furthermore, the concentration of bitcoin wealth is a security concern, when there are a few parties that could collude to take the system down. Bitcoin is missing a ceratain fault tolerance that will become increasingly relevant with quantum computers, or jumps in operational efficiency that represent the intermediate between quantum and the current binary computers.

Now, what does this have to do with MinePi?

Compare early Bitcoin to Pi, and there are not many differences, except that Pi is built on a more advanced network that increases the number of transactions per second, and the first-mover advantage is less than that of Bitcoin. In fact, it is clear that the individual can only scale in so much as they positively impact the community. Meanwhile, the next block of pi is so cheap to mine currently that we can do it on our phones. This is because there is not very many transactions yet. And so it is easy to get the next reward (pi).

So many questions… Good questions though.

Whether or not more equipment will be needed to verify the inreasingly complex puzzle that is the MinePi blockchain is a mystery. The dream of the project is that only a certain amount of Pi will be made available, and only to the first 100 million customers, however there seems some reservations when it comes to maintaining a scarcity important for the expectations for the coin. The white paper seems to do a good job of what the Federal Reserve does in it’s Forward Guidance., setting investor expectations for the future. 

Concluding Thoughts

We are early on in the project, so questions remain, such as when the project starts to scale, is the algorithm built into the system good enough to weed out duplicate users, as it says it will? If so, if means the system is built on advanced artificial intelligence, allowing it to weed out the fraudulent accounts. If it can weed out fraudulent accounts, can it flag transactions as fraudulent? As one of the core developers of Ethereum, Vlad Zamfir, reminds us that blockchain governance has always been a social design problem, will the new MinePi currency be able to have sufficient and effective distribution of control so that this design problem can become a new payment system that introduces the masses to crypto? Oh, I said it. Is mass adoption on the horizon? 

Incentives

These researchers at Stanford seemed to realize that in order to bring Crypto to the masses, they must distribute information about it equally, instead of gaining from the information asymmetry which usually characterizes ICO’s. The real question is whether or not the coin will make it through the initial phase, wherein too much centralization could allow for polluted incentives to destroy the project. Do the founders of the project have sufficient autonomy to do their work, while retaining safety from corruption?

The white paper made it sound like because of less concentration among initial members, there is more of a chance of corruption. Is the tech advanced enough, is the chain of custody properly established, and will the average person accept a gift that they don’t understand? This is me doing my part to try and explain, which the white paper says is duty for participants in the market.

Tried reaching out to the team developers, here, however I did not receive a response. Would love to ask them some questions, and perhaps have a podcast.

#minepi #stanford #blockchain #cryptocurrency #libra #graduates #free #development #paymentsystem #massadoption

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