What is Enclosed Mainnet?

What is Enclosed Mainnet?

Enclosed Mainnet, also referred to as the Enclosed Network period of Mainnet, represents a critical phase in the lifecycle of a blockchain. During this period, the blockchain operates live but with a protective firewall in place. This firewall restricts unwanted external connectivity, such as integration with crypto exchanges, cross-chain bridges, or unauthorized third parties. While the blockchain remains fully functional for internal activities, external interactions are deliberately blocked. This unique setup fosters the secure development of the ecosystem and infrastructure.

The concept of Enclosed Mainnet gained prominence with Pi Network, which launched its blockchain in an enclosed state on December 28, 2021. The Pi blockchain continues to operate in this mode, allowing Pioneers to engage with the blockchain and its utilities while maintaining internal exclusivity.

Why the Enclosed Mainnet Period?

Pi Network‘s strategic decision to implement an Enclosed Mainnet period serves multiple objectives:

1. Focus on Utility Creation:
   • The Enclosed Mainnet allows Pi Network to prioritize the development of ecosystem infrastructure and real-world applications for the Pi cryptocurrency. This period ensures a robust foundation before the network expands to external connectivity.
2. Massive KYC Verification:
   • A native, scalable KYC (Know Your Customer) solution enables millions of Pioneers to verify their identities and migrate their Pi balances to the Mainnet. This meticulous process is essential for maintaining the integrity of the network.
3. Avoid External Distractions:
   • By preventing external exchanges and cross-chain interactions, Pi Network mitigates potential issues such as premature speculation, volatility, and fraud. This ensures a stable and secure environment for meaningful development.
4. Preparation for Open Mainnet:
   • The Enclosed Mainnet acts as a precursor to the Open Mainnet. During the Open Mainnet phase, the firewall will be removed, allowing external connectivity and interactions with other blockchains and exchanges.

Technical Design and Restrictions

The Enclosed Mainnet period is reinforced by technical measures that prevent unauthorized external activities:

• Firewall Implementation:
  • The blockchain’s firewall limits account creation to authorized parties, such as KYC-approved Pioneers and Pi apps. This restriction prevents exchanges and DeFi projects from creating or operating accounts on the Pi blockchain.
• Enforcement of Policies:
  • Pi Network’s policies explicitly prohibit:
    1. The exchange of Pi for fiat currencies or other cryptocurrencies.
    2. Trading Pi for future promises of fiat or other assets.
    3. Unauthorized listings of Pi tokens on exchanges.
• Account Monitoring:
  • The firewall can disable wallets that violate the Enclosed Mainnet restrictions, preventing misuse of the network by proxy accounts for exchanges or unauthorized platforms.

Benefits of the Enclosed Mainnet

• Enhanced Security:
  • The firewall safeguards the network from potential vulnerabilities, such as unauthorized listings or cross-chain exploits.
• Ecosystem Development:
  • Pioneers can use their Pi within the enclosed ecosystem for trading goods, services, and interacting with apps on the Pi Browser.
  • Ongoing hackathons and partnerships encourage community developers to build innovative applications and utilities.
• Building a Viable Network:
  • This period ensures that the Pi Network evolves into a sustainable and impactful ecosystem, distinguishing itself from typical cryptocurrencies that often prioritize quick market listings over utility creation.

Misconceptions and Warnings

Pi Network has clarified that any claims about Pi token listings on exchanges are false. The firewall design technically prohibits external connectivity, making such listings invalid. Pi Network strongly advises Pioneers and users to avoid engaging with these unauthorized exchanges to prevent financial losses.

Future Outlook: Transition to Open Mainnet

The Enclosed Mainnet is a transitional phase designed to ensure the network’s readiness for broader adoption. The eventual Open Mainnet will remove the firewall, enabling external connectivity and allowing Pi tokens to interact with other blockchains and exchanges. Until then, Pi Network continues to focus on identity verification, ecosystem development, and utility creation to pave the way for a sustainable and impactful blockchain network.

The Enclosed Mainnet period highlights the importance of a phased approach in blockchain development. By prioritizing security, utility creation, and community building, projects like Pi Network set a new standard for how blockchain ecosystems can grow responsibly and sustainably.