Doubts about Pi Network: Privacy and Centralization

The core team of the Pi Network controls the amount of Pi cryptocurrency up to 82.8 billion dong out of a total of 100 billion supply, according to data from PiScan. This massive concentration has raised concerns about centralization, as such control given to the core team has a significant impact on the network's future. Although early-stage projects often retain a large amount of tokens, the number of Pi Network is considered particularly high. Currently, the team holds 62.8 billion Pi in six wallets, and an additional 20 billion Pi is held in about 10,000 unlisted wallets linked to the team. This concentration raises questions about the network's true decentralization capability.

In addition to distributing Tokens, Pi Network operates with only 43 nodes and three validators globally. Compared to other large Layer 1 networks, such as Bitcoin with 21,000 nodes, Ethereum with 6,600, and Solana with 4,800, Pi Network's arrangement appears very centralized. A small number of nodes means that control remains in the hands of a few, making it easier to manipulate the network. PiScan, a blockchain analysis platform, also points out that Pi Network's on-chain source code and data are difficult to analyze due to lack of transparency, raising further doubts about the project's long-term feasibility.

Recent privacy updates from Pi Network have sparked another point of contention. The project has revealed using ChatGPT to automate the customer identification process (KYC). While identity verification through AI is becoming more common, this move was not disclosed beforehand, prompting many users to question how their data is being handled. According to the updated policy, Pi Network users must consent to allowing their identity data to be processed by ChatGPT and potentially by other AI providers in the future.

User dissatisfaction and declining interest are also significant issues for Pi Network. Many users have faced issues with moving the mainnet and prolonged lock-up periods. Some have had to sell accounts due to restricted access to their Tokens. There have been numerous criticisms that the project lacks the true transparency of the blockchain, with transactions being erased from the public blockchain. One user called it the most failed project, excessive and without real value. These issues negatively affect the popularity of the Pi Network, leading to a significant decrease in search interest.

With concerns about centralization, lack of transparency, and increasing user dissatisfaction, Pi Network is facing a major challenge ahead. The ability to address these issues and regain trust from the community remains uncertain.

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