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 (HNT) positions itself as a people-powered network to start a wireless revolution. The “people's network” represents a paradigm shift for decentralized wireless infrastructure through the Helium blockchain. The network is currently live with over 462,000 hotspots, being the fastest growing wireless network. Moreover, it makes the concept of mining cryptocurrency more accessible to everyone, as anyone can install the necessary hardware at home or in an office.
Today's wireless connectivity solutions are inadequate to connect the next generation of hardware. Combining a blockchain node and wireless gateway, the Helium hotspot aims to provide the necessary infrastructure to build an interconnected future for all devices.
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.
HNT tokens can be burned to generate Data Credits, a non-fungible token to cover transaction fees on the network. Data Credits are also used to send sensor data and determine the Hotspot location.
Helium uses a burn and mint equilibrium to ensure that the HNT supply is in line with the network usage trend. An additional five million HNT are generated every month and distributed as follows:
- 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?
The approach to establishing an IoT network across proprietary hotspots is an intriguing aspect of the Helium ecosystem. Creating a decentralized open wireless network on blockchain technology is an ambitious goal that can bring the technology to the mainstream.
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.
Future Outlook
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.
However, finding the hardware to begin mining HNT as part of the Helium network may prove rather challenging. The community scrambles to find hardware, but it seems all official resellers no longer have any stock.
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