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Explanation of Pi Cryptocurrency and Liquidity


Explanation of Pi Cryptocurrency and Liquidity

Key Points:

  1. Nature of Pi: Pi is a form of encrypted currency. Its value is anchored to both existing assets and the potential value of future goods and services.
  2. Source of Liquidity: Pi's liquidity doesn't come from being traded on exchanges, but from real business models connected to the Pi Blockchain network.
  3. Smart Contracts: External industries connecting to Pi are required to launch smart contracts on the Pi Blockchain and issue Pi Assets according to their capacity.
  4. Widespread Utilization: Banks, other blockchains, and exchanges can benefit from the Pi network's features and user base.
  5. Liquidity Pool: A 5 billion Pi wallet will serve as a liquidity pool, supplying Pi for these asset issuance contracts.
  6. Open Mainnet: This approach is a step towards an Open Mainnet where the Pi Blockchain network is fully automated and controlled by smart contracts.
  7. Influx of Real Assets: This system will lead to a significant amount of real-world assets being integrated into the Pi network ecosystem.
  8. Comprehensive Platform: Pi Network is positioned as a social finance platform covering various industries, needs, and services.

Detailed Explanation:

Pi is unique in its approach to cryptocurrency and liquidity. Unlike traditional cryptocurrencies that rely on speculative trading for liquidity, Pi aims to derive its value and liquidity from real-world assets and business activities.

The core team behind Pi doesn't need to list the coin on exchanges for speculators to trade. Instead, they're creating a system where the liquidity comes from real assets tied to business models connected to the Pi Blockchain. This approach is referred to as Real World Assets (RWA).

When external industries connect to the Pi network, they're required to launch smart contracts and issue Pi Assets. This process effectively pumps a large amount of assets into the Pi ecosystem from various sectors.

The system is designed to be highly versatile. Banks could use the Pi Blockchain for instant, intermediary-free cross-border trades. Other blockchains might leverage Pi's scalability and performance. Exchanges (both centralized and decentralized) could tap into Pi's large user network.

To facilitate this, a Liquidity Pool of 5 billion Pi will act as a faucet, supplying Pi for the asset issuance contracts. This approach is seen as a step towards an Open Mainnet, where the entire network is controlled automatically by smart contracts.

The ultimate vision is for Pi to become a comprehensive social finance platform, covering a wide range of industries and services. This would allow for a continuous and potentially infinite influx of real-world assets into the Pi ecosystem, driving its value and utility.

Conclusion:

Pi represents an innovative approach to cryptocurrency, aiming to derive its liquidity and value from real-world business activities rather than speculative trading. It's not just a digital currency, but a comprehensive economic ecosystem tied to tangible assets and services. The goal is to create a platform that integrates various industries and services, potentially leading to sustained growth in both liquidity and value.

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