The Helium project is a custom-built blockchain and cryptocurrency for IoT devices. The goal of the platform, which can be used by anyone to secure rewards or verify data from connecting anything on earth with internet access through its wireless network, was made easier so that users do not have any technical knowledge required in years past when using these technologies alone. With powerful integrations like AI chatbots & image recognition tools available now at your fingertips as well as robust developer toolkits including one built directly onto Ethereum smart contracts; there’s never been an easier time than right now (or ever) getting started. As such, it’s one of the top-performing IoT-based networks in the market.
History of Helium (HNT)
Helium entered the market in July 1, 2013. The company is registered out of San Francisco, California. At that time, the company focused on streamlining IoT integration. Today, the company operates a powerful blockchain ecosystem that accomplishes this task.
What Problems Does Helium (HNT) Solve?
There are multiple problems that Helium seeks to alleviate. Primarily, the network helps to reduce centralization. The protocol operates as a decentralized wireless infrastructure that empowers developers to create more responsive Dapps. The protocol’s decentralized nature also improves its censorship-resistant characteristics.
Lack of Scalability
Another concern that Helium helps to reduce is scalability issues. Previous blockchains have shown how scalability concerns can become huge problems. Helium was built from the ground up to support high transaction throughput. Specifically, the network processes one block every 70 seconds. These blocks hold around 140 transactions per block.
Benefits of Helium (HNT)
There are a lot of benefits that Helium (HNT) users gain. The network supports low-powered wireless device communication. This strategy enables nearly any smart device to send data across Helium nodes securely.
Expandable
The platform makes it simple for developers to integrate new hardware and software solutions. For example, the entire system is open-source. Users can review the source code of the project to get a firm understanding of every process. Open source projects are considered a better investment because the community is able to vet the code.
How Does Helium (HNT) Work
As part of Helium’s unique approach to the market, the developers introduced a new concept called WHIP. WHIP is an open-source and standards-compliant wireless network protocol. Uniquely, it was designed to run on existing commodity radio chips available from dozens of manufacturers with no proprietary technologies or modulation required. These networks operate as DWNs (decentralized wireless networks).
Hotspots
Users can operate hotspots and earn rewards utilizing Helium. Hotspot users can earn when they submit valid proof of coverage challenges, participate in proof of coverage as a target, witnessing a proof of coverage challenge, or transfer device data over the network. Hotspot hosts can also earn rewards when they serve as consensus group members.
Helium Token (HNT)
The Helium token is the main crypto and utility token of the network. This cryptocurrency entered the market officially on July 29, 2019. The token plays multiple roles within the system. It enables IoT devices to communicate data securely. Also, hotspot hosts mine HNT while providing service. Notably, there is a max supply of 223,000,000 HNT. Additionally, the developers didn’t conduct a pre-mine during the token’s launch.
Helium Blockchain
The Helium blockchain provides a decentralized ledger and smart contract capabilities to the platform. This specialty blockchain provides high throughput and security via the Helium Consensus Protocol.
Helium Consensus Protocol
Uniquely, the network takes the PoW concept and improves upon it considerably. Instead of miners conducting random mathematical equations, like with Bitcoin, miners conduct network necessary functions. In this way, miners perform work that is both useful and reusable to the network beyond simply securing the blockchain. These activities can include conducting the other consensus systems within the network. These systems include Proof-of-Coverage, Proof-of-Serialization, and Proof-of-location. Together, these systems enable Helium to provide decentralized connectivity to the masses.
The Helium Consensus Protocol is based on a variant of the HoneyBadgerBFT (HBBFT) protocol, which, in turn, is based on research from a team at the University of Illinois, Urbana-Champaign and Andrew Miller. It features a permissionless and Byzantine Fault Tolerant design.
Data Credits
Data Credits are similar to Ethereum’s gas tokens. All transactions in the Helium blockchain are paid in Data Credits (DCs). Interestingly, Data Credits are produced by burning some amount of HNT using an on-chain transaction. Interestingly, the Helium Mobile Wallet automatically calculates the DC cost of your transaction and burns the precise amount of HNT to supply the required DCs for the transaction.
Mine
Users can mine HNT and secure rewards. Routers pay Miners for sending data to and from the internet with newly-minted tokens. Uniquely, mining is conducted using radio technology. This strategy provides more sustainability than CPU/GPU-based system. Notably, all miners participate in the creation of new blocks in the blockchain by being elected to an asynchronous Byzantine fault-tolerant consensus group.
Helium (HNT) Powerful Technologies Merge
The Helium (HNT) concept merges two of the most powerful technological advancements of today. The instant consensus capabilities and security of blockchain fit perfectly with the expandability and monitoring capabilities of IoT. As such, you can expect to see more firms attempt to bring these techs together. For now, Helium (HNT) remains a pioneering force in the market.
