CoinMarketCap takes a deep dive into #Helium (HNT), a network that is currently live with over 462,000 hotspots, being the fastest-growing wireless network in the world.
Helium was established in 2013 by Shawn Fanning, Amir Haleen, and Sean Carey. The mainnet went live in July 2019.
How Does Helium Work?
The primary component of Helium is the Helium Hotspot. The proprietary hardware makes it possible for network participants to create a wireless gateway to connect devices and earn compensation in HNT, the native ecosystem token. Deploying a hotspot is straightforward, as users will submit proof of wireless coverage in a cryptographically verified location.
Once the Helium network is deployed, any sensor interfacing with the Helium LongFi wireless protocol can request a network connection. The created network is designed primarily for battery-powered devices used to send minor amounts of information over a long distance.
Every hotspot receives HNT rewards depending on the quality of the coverage they offer and the amount of LongFi sensor data they facilitate.
- 30% goes to network data transfer (facilitated by HotsSports)
- 35% goes to hotspot infrastructure
- 35% goes to Helium, INC, and investors
- Rates will adjust yearly, with network data transfer allocation increasing by 2.5%, Hotspot infrastructure allocation decreasing by 1.5%, and Helium, INC and investors allocation decreasing by 1%.
What Makes Helium Unique?
Furthermore, the proprietary Proof Of Coverage model serves as an incentive to get more hotspots online worldwide and helps ensure users receive HNT tokens based on their performance and overall coverage. It also helps hotspots assert their current location based on GPS information, allowing owners to prove their coverage. Every hotspot on the Helium network has a score between 0.0 and 1, with higher scores indicating better network confidence and higher coverage quality.
The new consensus algorithm also borrows elements from HoneyBadger Byzantine Fault Tolerance, dubbed Helium Consensus Protocol.
Provision of long-range wireless coverage is made possible through LongFi, an open-source protocol is the sub-GHz frequency band. Any device can broadcast messages within the coverage area of the Helium network for a fee.
The overall social media sentiment toward Helium seems rather positive. Community members are to show off their mining setups and tricks to cover the largest possible area. The project's subreddit has a lot of viable information and is home to many conversations regarding the hardware side and how earnings have evolved in recent months.
Moreover, there seems to be genuine excitement regarding how much money users can make, depending on their location. Some make as much as $50 per day, which makes it a decent passive revenue stream. Others may earn less than that, as it depends on where one lives, the coverage quality, and how many devices connect.
As over 462,000 hotspots have been registered - over 80% are online - there seems to be a growing interest in Helium. Nearly 163,000 unique hotspot owners exist across 162 countries, indicating the project's momentum.