What is Helium?
Helium is a decentralized wireless network that enables low-power smart devices, also known as miners, to send and receive data to the internet. These miners earn HNT, the native token of the Helium network, for providing network coverage and relaying data to the internet using a hardware device called a Hotspot.
Helium was founded in 2013 by Shawn Fanning, Amir Haleem, and Sean Carey with the goal of making it easier to build connected devices. The team recognized that current wireless communication possibilities will not be sufficient for the future generation of machines, and thus created the Helium Hotspot as a solution. The Hotspot is a combination of a physical blockchain node and a wireless gateway that network participants can use to earn HNT.
To earn rewards, Hotspots must submit proof of wireless coverage in a cryptographically verified location and time. Once the network is established, any sensor that supports the Helium LongFi wireless protocol can join the network. The LongFi protocol is designed for battery-powered devices that send small amounts of data over long distances.
HNT rewards are given to Hotspots based on the quality of their coverage and the amount of LongFi sensor data they relay for network devices. The network also utilizes Data Credits, a non-fungible token used for transaction fees, which are created by burning HNT. Sending sensor data and claiming Hotspot locations both require Data Credits. Any LongFi-enabled IoT device can send data to any Helium Hotspot with coverage.
Helium has received investments from well-known venture capital companies such as Khosla Ventures, FirstMark Capital, GV, and HSB/MunichRe Ventures. In 2021, Invoxia, a company that provides GPS trackers for individuals and businesses, joined the Helium network for its data management needs.
The Helium network utilizes a unique technique called proof of coverage (PoC) to reward miners in HNT for using radio waves to validate that Hotspots are providing wireless coverage to devices. This is similar to how Ethereum uses graphics cards to validate transactions through proof of work.
HNT can be obtained by mining using a suitable Hotspot, which not only mines HNT but also provides network coverage for IoT devices. Initially, all HNT is mined at 5M HNT/month and is halved every two years after that. In August 2021, the monthly net HNT issuance decreased to 2.5M HNT. The same month, HNT price hit a 3-month high after the network's active nodes surpassed 100,000, and the project raised USD 111 million through a token sale.
In addition to rewarding Hotspot operators and serving as the basis for Data Credits, Helium has several other uses. It can easily connect devices on the Internet of Things through its low power efficiency and effectiveness. Helium also supports HNT staking, allowing users to benefit from their network involvement. By purchasing special mining devices, users can earn rewards based on their involvement in the network. Helium aims to build a unique infrastructure for a new wireless economy driven by decentralization, hence its nickname "The People's Network."
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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