What is Helium (HNT)? The Future of Low-Cost Internet

KEYTAKEAWAYS

TABLE OF CONTENTS

• KEY TAKEAWAYS
• WHAT IS HELIUM (HNT)?
• HELIUM | HNT TOKEN
• HELIUM MAIN ADVANTAGES
• HELIUM’S FUTURE
• DISCLAIMER
• WRITER’S INTRO

CONTENT

Helium (HNT) is a decentralized wireless network offering low-cost internet through user-deployed hotspots. Users earn HNT tokens, making it ideal for IoT connectivity and blockchain mining.

WHAT IS HELIUM (HNT)?

Helium is a decentralized wireless network project that aims to provide low-cost internet connectivity on a global scale. Its core concept is to enable users to share wireless network coverage through the use of purchased hotspot devices (Hotspots) and, in return, earn HNT tokens as rewards.

This approach significantly reduces the cost of traditional network coverage and offers high scalability, making it easier for areas and communities with limited or no network access to connect to the internet.

>>> More to read : DePIN: How It Transforms Traditional IoT Networks

• How the Helium Network Operates

The Helium network comprises a blockchain and a native token called HNT. It operates on a novel consensus mechanism known as the “Helium Consensus Protocol” and utilizes a unique validation method called “Proof of Coverage (PoC).”

Network participants can set up Helium Hotspot devices and earn HNT tokens by providing wireless network coverage and transmitting data. When a user’s hotspot device successfully submits proof of its coverage range to the network, they earn HNT as a reward.

• Features of the Helium Network: LoRaWAN Devices and Proof of Coverage

The Helium network’s operation is based on LoRaWAN devices, which use a long-range wide-area network communication protocol developed from Semtech’s LoRa technology.

LoRaWAN is a low-power, long-distance communication technology designed for IoT (Internet of Things) devices and is widely used worldwide, allowing IoT devices distributed across various cities to connect and share information easily. Currently, the Helium network is the largest LoRaWAN network in the world.

1. LoRa Technology: LoRa (Long Range) is a wireless communication technology that offers long-distance, low-power connectivity, commonly used for point-to-point (P2P) communication, providing extensive wireless coverage across large geographic areas.

2. LoRaWAN Technology: LoRaWAN is an advanced communication protocol built on LoRa, specifically designed for internet communication, allowing IoT devices to connect to the internet. Compared to LoRa, LoRaWAN enhances network security and provides the capability to connect devices to the internet.

(Source: Helium)

Helium Network’s Validation Mechanism: Proof of Coverage (PoC)

The Proof of Coverage (PoC) is a unique validation protocol in the Helium network used to ensure that network participants provide effective network coverage.

PoC leverages the properties of radio waves to verify the geographical location and coverage range of hotspot devices, ensuring their network services are genuine and valid.

This mechanism incentivizes network participants to offer reliable coverage and rewards them with HNT tokens based on the coverage they provide.

HELIUM | HNT TOKEN

HNT is the native token of the Helium network, used as a reward for mining on the Helium blockchain and for data transmission through the Helium network. The Helium network’s economy primarily revolves around the HNT token, which also functions as a governance token for community voting.

The Helium network ecosystem employs specific mechanisms to ensure the network’s smooth operation and to maintain the token’s scarcity.

Initially, the monthly supply of HNT was set at 5 million tokens. Later, through community voting, the total supply was expanded to 223 million tokens. The token release rate is halved every two years, limiting the total number of tokens minted over a certain period.

HELIUM MAIN ADVANTAGES

1. Decentralized Network: Anyone can deploy a Helium hotspot and become part of the network, making the Helium network more decentralized while providing broad and reliable wireless coverage.

2. Low Cost and High Efficiency: Compared to traditional cellular networks, the operational cost of the Helium network is extremely low, making it particularly suitable for IoT devices that require long-distance, low-power communication.

3. Incentive Model: Through the HNT token rewards, Helium attracts participants from around the world to contribute to building the network, resulting in an ever-expanding coverage area.

>>> More to read : Filecoin (FIL): The Future of Decentralized Storage

HELIUM’S FUTURE

The Helium network is experiencing significant growth and has a clear path for expanding its decentralized wireless network on a global scale. As IoT (Internet of Things) applications continue to develop rapidly, Helium is well-positioned to become a vital infrastructure provider for IoT connectivity.

Its integration with emerging technologies like 5G and partnerships with industry leaders will further solidify its position in the market.

Is Helium Worth Investing In?

1. Strong Technical Team: The Helium project was founded by a team with a solid reputation in the technology sector, laying a strong foundation for its development.

2. High Community Acceptance: One of the most notable indicators of Helium‘s potential success is the high level of acceptance and participation from its community. The exponential growth in the number of hotspots joining the Helium network demonstrates that the project is steadily gaining wider recognition and usage.

3. HNT Token Trading Volume: The trading volume of the HNT token reflects the community’s interest in the token and its economic model, indicating that the market is paying positive attention to Helium.

4. Stable Tokenomics: So far, Helium‘s tokenomics design has functioned well, with no significant issues or complaints from users. The burn-and-mint model, along with the HNT Oracle model, has effectively maintained economic balance, ensuring sufficient token supply for network operations while preserving the token’s scarcity, which helps maintain HNT’s value.

• Helium Conclusion

Helium has a strong technical foundation, growing community support, an expanding network, and balanced tokenomics, making it a compelling investment opportunity.

 However, as with any investment, it is crucial for investors to conduct thorough research and carefully consider the risks, especially in the rapidly changing blockchain and cryptocurrency landscape.