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Pi Network Founder Addresses Key Wallet Questions

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As a fellow pioneer, you know the importance of safeguarding your digital assets. This is why the recent Pi Wallet Q&A session by Pi Network founder Dr. Nicholas Kokkalis offers invaluable insights. In his characteristically warm yet direct delivery, Dr. Kokkalis addresses critical questions on custodial versus non-custodial wallets, passphrase recovery, and best practices for passphrase security. Though Pi is still in testnet, the guidance has significant implications once mainnet launches, expected by year’s end. Heed Dr. Kokkalis’ advice now to avoid irrevocable losses later. This presentation is a must-see for pioneers seeking to maximize protections for their hard-earned Pi.

Pi Network Founder Hosts Wallet Q&A

Non-Custodial Security

Pi Network founder Dr. Nicholas Kokkalis clarified that the Pi wallet is non-custodial, meaning only you have access to your wallet passphrase. No third party, including the Pi Core Team, has access to users’ passphrases or can recover them if lost. This protects pioneers’ accounts and any Pi they may hold.

Mainnet Launch Still on Track for 2020

Dr. Kokkalis reaffirmed the goal of launching the Pi mainnet by the end of 2020, which will mark the transition from the testnet to the live mainnet. Once the mainnet launches, the Pi in pioneers’ wallets will become real and hold monetary value. Pioneers should safeguard their wallet passphrases to avoid losing access to their Pi balance.

Passphrase Loss Cannot be Remedied Post-Mainnet

Before the mainnet launch, pioneers can simply create a new wallet if they lose access to an existing one. However, once the mainnet is live, pioneers will lose access to their Pi balance forever if they lose their wallet passphrase. The Core Team is working on potential solutions to allow passphrase recovery while maintaining wallet security but there are no guarantees. Pioneers must keep passphrases safe.

Shared Passphrases Compromise Security

Dr. Kokkalis warned pioneers that sharing wallet passphrases compromises account security and is never recommended. If a passphrase has been shared, pioneers should create a new wallet immediately and transfer their Pi balance to the new wallet once the mainnet launches. Failing to do so could result in Pi theft.

In summary, the Q&A clarified critical details about the Pi wallet, mainnet launch, passphrase security, and how pioneers can protect their accounts. By following the guidance and warnings provided by Dr. Kokkalis, pioneers can safeguard their place in the Pi Network as it transitions to a live mainnet.

Is the Pi Wallet Custodial or Non-Custodial?

As Dr. Kokkalis clarified, the Pi Wallet is a non-custodial digital wallet.

This means that only you have access to the passphrase that controls your Pi Wallet. The Pi core team does not have any access to your funds or control over transactions.

Keep Your Passphrase Safe

Since the Pi Wallet is non-custodial, it is critical that you keep your passphrase secure and private. Do not share it with anyone. If your passphrase is compromised, your Pi could be stolen. The core team is working on mechanisms to potentially recover access to accounts in the future while maintaining the non-custodial nature of the wallet, but currently, losing your passphrase means losing access to your Pi.

Test Pi Only

At this point in time, the Pi Wallet only contains test Pi on the testnet. Mainnet and real Pi are still to come. This means if you lose access to your current wallet by forgetting your passphrase or accidentally sharing it, you can simply create a new wallet and passphrase to start collecting test Pi again.

Mainnet Requires Caution

However, once mainnet launches and your Pi Wallet contains real Pi, losing your passphrase or sharing it with others could mean losing your Pi permanently. You should create an entirely new wallet with a new passphrase immediately if your current one becomes compromised to avoid theft of your Pi. Transfer all Pi from the compromised wallet to the new secure one as quickly as possible.

Regular Backups

To ensure you do not lose access to your Pi Wallet, be sure to back up your passphrase regularly in a safe and secure location that only you can access. Backing up your passphrase will allow you to recover your wallet if something happens to the device where you originally set it up. But again, keep those backups private and secure as well.

The Pi Wallet provides an exciting opportunity to truly be in control of your own digital funds. By taking security seriously and keeping your passphrase safe, the non-custodial Pi Wallet can give you confidence in the safety and security of your Pi. Stay cautious, pioneers!

When Will Pi Have Real Value?

Launch of Mainnet

At present, the Pi Network is still in testnet phase, meaning the Pi coins you are mining have no real-world value. The Pi Network team is working to launch the mainnet by the end of 2021, which will mark the transition of Pi into a fully decentralized blockchain with real Pi coins.

Exchange Listing

Once the mainnet launches, the Core Team will focus their efforts on listing Pi on major crypto exchanges. Getting Pi listed on popular exchanges is crucial for establishing a market value for Pi and enabling Pi holders to exchange Pi for other currencies. The Core Team has not yet announced which exchanges they are targeting for Pi listing. Pi’s value will largely depend on the exchanges it gets accepted to and the demand for Pi on those exchanges.

Circulation and Distribution

The Pi Network started with zero active users and Pi coins. As more people join the network and mine Pi, the circulation of Pi will increase. According to the Pi Network, over 25 million people have joined the network and are mining Pi as of early 2021. The high circulation and widespread distribution of Pi coins among many users could positively impact Pi’s value. With a high volume of coins spread out across millions of users, Pi has the potential for high liquidity which will make it easier to buy and sell on exchanges.

Utility and Real-World Use Cases

For any cryptocurrency to have long-term value, there must be real-world use cases and utility. The Pi Network team envisions Pi becoming a widely used global currency for daily transactions. If the team is successful in building real-world use cases and partnerships to drive mainstream Pi adoption, the utility and demand for Pi would increase, thus positively impacting its market value over time. However, there is no guarantee of success, and Pi’s value remains speculative.

In summary, Pi is still in testnet and currently has no market value. But with the mainnet launch, exchange listings, a broad distribution model, and development of real-world utility, Pi has the potential to establish a market value and become a valuable global currency. The exact timeline and path to achieving this vision, however, remains uncertain. Pioneers can continue mining Pi for free today and hold it with the hope that it becomes valuable in the future.

What Happens if You Lose Your Passphrase?

As a Pioneer, the security of your Pi wallet passphrase is critically important. Since the Pi wallet is a non-custodial wallet, if you lose your passphrase, you will lose access to your Pi and there is no way to recover it.

Create a New Wallet Immediately

If you accidentally share or lose your passphrase, you should generate a new Pi wallet immediately with a new, secure passphrase. Although you will lose access to any Pi in your previous wallet, creating a new wallet will prevent others from accessing those funds. The earlier you create a new wallet, the less opportunity there is for your compromised wallet to be exploited.

Memorize and Protect Your Passphrase

To avoid losing access to your Pi wallet, you must memorize the passphrase and keep it safe. Do not share your passphrase with anyone for any reason. Write it down on paper and store it in a secure location in case you forget it. Do not store an unencrypted digital copy of your passphrase, as that can be accessed if your accounts or devices are compromised.

Mainnet Wallets Contain Real Value

After Pi transitions to mainnet, wallets will contain real Pi that has monetary value. Losing access to a mainnet wallet will mean losing access to funds that could be worth a substantial amount of money. It is critical that Pioneers memorize and properly secure their passphrase to avoid losing access to a mainnet wallet.

Security Circles Can Help with Account Recovery

The Pi Core Team is developing new mechanisms, like security circles, that can help with account recovery while still keeping wallets non-custodial. However, these mechanisms will not work if a passphrase has been lost or forgotten. The passphrase will always be the primary way to access your Pi wallet, so keeping it safe is the top priority for all Pioneers.

By taking the proper precautions to memorize and safeguard your passphrase, you can avoid the risk of losing access to your Pi wallet and any funds it may contain. Creating strong security habits now will serve you well as Pi transitions to mainnet and Pi gains real-world value. Following best practices for account security is one of the responsibilities that comes with the opportunity of participating in this new digital currency.

What to Do if You Shared Your Passphrase

Create a New Wallet Immediately

If you have accidentally shared your wallet passphrase with others, the most prudent course of action is to generate a new wallet immediately. As the Pi Network operates on a non-custodial model, no one but you has access to your wallet and funds. Sharing the passphrase compromises this security and privacy.

Transfer All Pi to the New Wallet

Once you have created a new wallet, you must transfer all Pi held in the compromised wallet to the new one. This process will entail logging into the compromised wallet, initiating a transfer of the entire Pi balance to the address of the new wallet. Execute this transfer rapidly before the compromised passphrase can be misused.

Do Not Share Passphrases Going Forward

To avoid repeating this error and potentially losing access to your Pi holdings, never share your wallet passphrase with any other individuals. Treat passphrases with the same discretion as passwords, account numbers, and other sensitive financial data.

Enable Additional Security Measures (Optional)

For additional security, you may enable optional safeguards like two-factor authentication on your Pi Network account. You might also consider utilizing a password manager to generate and store a complex, unique passphrase for your Pi wallet. Services like LastPass, 1Password, and Dashlane can help create and remember intricate passphrases to thwart brute force hacking attempts.

While the testing phase of the Pi Network mitigates most risks of losing access to Pi, best practices around security and privacy should be adopted immediately. Following the recommendations above, creating a new wallet, transferring funds, and committing to safe passphrase practices can help remedy sharing your passphrase and reduce future risks. Constant vigilance around account security will serve Pioneers well as the network progresses to mainnet.

Conclusion

In summary, Dr. Nicholas Kokkalis provided insightful responses to pressing questions about the forthcoming Pi Network wallet. His explanations underscored that user security and privacy are paramount in the wallet’s non-custodial design. While passphrase recovery options are limited to avoid security compromises, Dr. Kokkalis hinted at potential new mechanisms under development. Overall, the presentation offered transparency into the wallet’s development and should assure Pioneers of the project’s good intentions. As the Pi Network transitions to mainnet, Pioneers must remain vigilant in safeguarding their account passphrases and proactively seek guidance to avoid pitfalls. Though the cryptocurrency promises future utility, its present-day value remains tied to engaged community participation. Continue Reading

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