Pi's Protocol Upgrade Paves the Way for Regulatory-Ready Decentralization

Pi Network has launched a major protocol upgrade, transitioning from version 19 to version 23, which introduces a range of technical enhancements and improved compliance measures. Among the key features of this upgrade is the integration of Know Your Customer (KYC) authority directly into the protocol, aiming to strengthen the network’s regulatory compliance while enabling a more decentralized and community-driven verification process [2]. The new version also draws from Stellar’s latest technology, with the goal of expanding the blockchain's functionality and improving control mechanisms [2].

The Linux Node release is a pivotal development in this update, marking the first time Pi Network offers full node support for Linux alongside existing support for Windows and macOS [2]. This expansion is expected to increase the network's accessibility to developers and open-source contributors, potentially accelerating the decentralization of the ecosystem. The Core Team has emphasized that the Linux Node, while not linked to mining rewards, enhances the flexibility and scalability of the Pi blockchain [2].

The upgrade is being rolled out in stages, with Testnet1 upgrades commencing first, followed by Testnet2 and the Mainnet in the coming weeks [2]. This phased approach is intended to minimize disruptions, though brief outages are expected during the transition. Centralized exchanges (CEXs) are also anticipated to experience temporary impacts as they adapt to the new protocol version.

The Pi token has shown signs of positive momentum following the announcement of the upgrade. As of the latest reports, the token has risen by over 5% since the beginning of the week and is trading near $0.37 [2]. However, the token faces potential short-term pressure due to scheduled unlocks of large numbers of Pi tokens on September 2 and 6 [2]. After those dates, the pressure is expected to ease, assuming no major developments arise.

In addition to the technical upgrades, Pi Network continues to build on its foundation of a large and globally distributed user base. With 65 million users across more than 200 countries, the project has demonstrated a unique ability to cultivate a broad and engaged community [1]. The Core Team has consistently prioritized compliance and security, including the slow but deliberate rollout of KYC measures, which some analysts view as a strategic advantage in a regulatory uncertain space [1].

While predictions for the Pi token remain mixed, with some analysts suggesting a long-term growth potential, prediction platforms like CoinCodex do not expect the token to reach triple-digit prices in the near future [1]. Regardless, the ongoing technical development and increasing institutional interest—such as the upcoming launch of a Pi ETP—suggest that the project is laying the groundwork for a potential broader adoption [1].

Source: [1] Can Pi Network Price Hit $100? (https://coinpedia.org/news/can-pi-network-price-hit-100-2/) [2] Pi Network's Latest Update Explained - And Why It's a Big ... (https://cryptopotato.com/pi-networks-latest-update-explained-and-why-its-a-big-deal/) [3] Pi Network's protocol upgrades will enable functionalities ... (https://www.facebook.com/PiCoreTeam/posts/pi-networks-protocol-upgrades-will-enable-functionalities-including-embedding-ky/1099519405644304/)