Helium (HNT) Review: Hotspots Meet IoT Meets Blockchain
- Blockchain, Cryptocurrencies

Helium (HNT) Review: Hotspots Meet IoT Meets Blockchain

What is Helium (HNT)?

The Helium blockchain’s native coin is called HNT, and it uses the burn and mint equilibrium token model.

The blockchain has enabled the decentralization of various things. One of these is the decentralization of wireless networks, which is fascinating.

You may be interested in learning more about the Helium Network, which is rapidly expanding. It can provide a method for you to mine cryptocurrencies without investing in a power-hungry and costly server. The technology also promises to be cheap, enabling wireless connection for millions of devices, chipsets, sensors, and MCUs for a single penny each year.

If all of this sounds intriguing to you, let us take a closer look at the Helium Network.

Who Invented Helium?

Sean Carey, Amir Haleem, and Shawn Fanning launched Helium in 2013.

Haleem has experience in eSports and game development. Fanning, on the other hand, is most known for co-founding Napster. In the late 1990s, this music-sharing service was one of the first popular P2P (peer-to-peer) internet connections.

Before Helium, Carey had various development roles, notably at “Where,” an advertising optimization firm that PayPal acquired.

According to the company, Helium’s team currently comprises individuals with experience in “peer-to-peer, radio and hardware, manufacturing, distributed systems, and blockchain technologies.”

Helium Network

Helium Network is a distributed and worldwide long-range wireless network that provides coverage for LoRaWAN-enabled Internet of Things (IoT) devices. 

HNT (Helium Network Token) is the cryptocurrency used to reward Hotspots that offer coverage to the public network in exchange for HNT.

The network is connected to the Helium blockchain, which provides an incentive for Hotspot operators. Despite only being in operation for less than two years, the blockchain and Helium Network have accumulated more than 25,000 worldwide Hotspots, which made it the largest LoRaWAN network globally by far. 

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LoRaWAN

LoRaWAN is a point-to-multipoint (P2MP) networking protocol that uses the LoRa modulation technique built by Semtech to communicate with other devices. Therefore, it is essential to understand how radio waves interact with LoRaWAN gateways to perform functions such as encryption and identification. A cloud component is also included, with various gateways being able to connect to it.

Helium (HNT) 

The Proof of Coverage consensus technique Helium’s blockchain is a new way of reaching an agreement (PoC). The Mainnet of the blockchain was launched on July 29, 2019. Since then, its reach has grown considerably, particularly in Western Europe, North America, and other regions. Helium is a blockchain-based system that runs the world’s largest LoRaWAN network and provides hotspot incentives in the form of HNT payments to users who use the network.

Insight

Individuals construct the network by buying approved wireless hotspots, which deliver data to devices capable of connecting and installing them. Mines are located in these hotspots, and they are part of the Helium blockchain concept. Thus, there is no need to be concerned; even with a worldwide chip scarcity, we still have Bobcat Helium miner in stock. Helium uses a Proof of Coverage consensus method, a variation of the Proof of Work consensus process (PoC).

The physical properties of radio waves are used in PoC, in contrast to more typical applications of PoW, to produce a unit of labor used to verify that the network is operating correctly. Compared to a more traditional Proof of Labor implementation, such as Ethereum, this is a new unit of work. It is a cryptographic hash method (code) that GPUs solve. Unlike a 240W graphics card, which uses about the same amount of electricity, a Helium miner needs 5W to run its transmitter and a little CPU.

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Challenges

Other nearby hotspots often perform Proof of Coverage tests to verify that a hotspot is located where it claims and can deliver data to the network. These difficulties reflect the amount of effort needed for the network to agree on new transactions in the blockchain’s blocks. Additionally, they are the primary way for miners to earn HNT. In challenges, three roles are involved: the challengee, the challenger, and the witnesses.

Proof of Coverage (POC)

Helium’s new algorithm is called Proof of Coverage. It validates that the network’s Hotspots are physically situated where they claim to be and accurately reflect the wireless coverage provided by the Hotspot.

Helium’s success is contingent upon its ability to reliably offer wireless network coverage to the network’s linked devices. This necessitated the development of a working algorithm tailored to that use case particularly. As a result, blockchain and the Helium network can use the unique characteristics of radio frequency to provide proofs relevant to the network and its users via Proof of Coverage.

Helium Halving

The Helium genesis block will celebrate its second anniversary on August 1, 2021. This day marks the first halving of HNT, which will occur every two years going forward. As a consequence, the monthly net HNT supply will be reduced from 5 million to 2.5 million.

This process will be continued until all HNT is depleted. The original plan was planned for a peak of 240 million HNT output. However, due to delayed block timings, the first year produced just 43 million of the expected 60 million HNT. As a consequence, the total supply of HNT is 223 million.

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Conclusion

Due to the present pricing trends in HNT and the amount of HNT currently being successfully mined, we think 2021-2022 will be excellent for Helium mining. Aside from that, owing to the significant number of people who will get their miners in late 2021, there is a chance that there will be an increased number of witnesses in the vicinity of your Hotspot. Therefore, during the next few years, Helium is expected to become a viable alternative for mining HNT.

Helium (HNT) Review: Hotspots Meet IoT Meets Blockchain

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