Introduction
Relatively few cryptocurrencies are now utilising the emerging Internet of Things market, despite the fact that thousands of them target a wide range of use cases. Crypto enthusiasts may be familiar with Iota (MIOTA), one of the most well-known blockless platforms for Internet of Things device connections, but Helium is a blockchain-based project that takes a different method while yet having the same use case.
Helium is a blockchain-based Internet of Things (IoT) network that links wireless devices to the network by using nodes as hotspots. Every time a Hotspot sends connection data across the network, the native token HNT fuels the system and pays out. The Internet of Things is becoming increasingly necessary as technology advances, making Helium a project that is becoming more and more vital.
What's Happening Currently?
Traditional telecom companies have spent hundreds of billions building out spectrum and tower infrastructure, as well as on ongoing maintenance and network upgrades. Lately, they have been investing into the next generation of wireless technology (“5G”), but they have not done a good job at providing 5G inside of people’s homes, in data-congested metropolitan areas, or in remote areas. These problems stem from the fact that the 5G spectrum has a difficult time penetrating into the home from a distant radio cell, because legacy wireless infrastructure is ill-equipped to handle the extra load, and because there is no incentive for them to build in areas with low population density.
The old model also has issues with consumers overpaying for their data and a lack of privacy. Regarding privacy, the carriers own the data that passes through their networks and are solely subject to the Terms of Service. This means that the carriers have the right to inspect the data at any time. People who don't wish to divulge to a corporation their innermost thoughts and sentiments on a regular basis should find this unpleasant. Regarding the second issue, telecom providers charge exorbitant prices for the data they supply—up to $2.50 per gigabyte at times.
Because of this, they would want to persuade customers to sign up for an unlimited plan in order to distribute consumption among a range of users, some of whom use a lot and some of whom use less. Customers could save money by moving to DeWi providers like Helium Wireless and Pollen Mobile, as they offer substantially lower cost bases—as low as $0.50 per GB. We suggest reading our earlier DeWi article to find out more about the issues that DeWi resolves.
What's Helium (HNT)?
Helium is an Internet of Things (IoT) network built on blockchain technology. While the system transfers data amongst the network nodes, helium technology facilitates communication between the devices. In the Helium system, the nodes that make up the network are referred to as hotspots. The Hotspots use LoRaWAN and offer public network coverage. Platforms such as Helium can connect to the cloud component of LoRaWAN, a media access control layer protocol.
With more than 25,000 Hotspots serving as network nodes, Helium is one of the largest LoRaWAN networks. Hotspots combine the capabilities of a blockchain-based mining device with LoRaWAN.
Why Do we need Helium?
Helium, also known as "The People's Network," seeks to solve all the problems and provide insufficient remedies in order to set up an effective and useful Internet of things for the future. The privacy of well-known IoT hubs like Google and Amazon is one of the main issues facing the industry. Decentralisation and the blockchain technology utilised in the construction of Helium mean that privacy issues will soon be resolved when it comes to Internet of Things device connectivity.
Helium wants to build an IoT device network that is dependable, decentralised, and worldwide by utilising the HNT holders' community. The nodes, or hotspots, that make up the network are managed by node operators, who are essentially HNT holders. Users can host Hotspots and manage nodes to provide incentives for participating in the operation of the network.
IoT devices are already supported via WiFi. Supporting the widest range of devices raises privacy issues, though. By employing a decentralised architecture and consensus process, Helium addresses this problem and provides the network with 200 times more coverage than WiFi connections for the Internet of Things.
How Does Helium Work?
Proof of Coverage, the consensus algorithm that powers the network, is also in charge of paying out incentives to node operators and HNT holders. To establish Hotspots, users must buy a mining gear from the Helium website. By joining to the network, miners generate radio frequencies, and the Proof of Coverage mechanism verifies the locations of hotspots.
Network users may assume any of the three roles—Transmitter, Witness, and Challenger—that are essential to the network's operation. The Hotspot network role affects the awards that are given out by the system as well.
A dispersed network of autonomous nodes that securely store, verify, and transmit data from linked devices is made possible by the blockchain. Additionally, it permits a pay-as-you-go payment model by enabling the safe movement of funds from one device to another. With this concept, a huge number of devices can be connected to the network without the need for a centralised server or costly infrastructure. The Helium Network can offer dependable and secure wireless connections to billions of devices globally by utilising the blockchain. The Helium network is made up of many node kinds, such as Hotspots that serve as internet gateways and Miners that verify transactions and aid in network security. If miners are in charge of confirming transactions and adding them to the Helium blockchain, hotspots are in charge of setting up and distributing wifi networks.
To participate in the Helium network, users must purchase a Hotspot and contribute resources such as bandwidth, storage, and computing power. In return, they are rewarded with HNT. Miners are also rewarded with HNT for their contributions to the network.
Founding Story
Only a few years after the initial cryptocurrency, Bitcoin, was created, Helium was formed in 2013. Launched as Helium, Inc., Helium became the first worldwide peer-to-peer wireless network capable of establishing connections between various devices and creating a universally accessible Internet of Things.
Shawn Fanning, Sean Carey, and Amir Haleem all co-founded Helium. Between 2015 and 2019, the initiative raised more than $53 million in four different investment rounds. In 2019, the network went online with the goal of resolving typical challenges like privacy observed in the IoT market.
Tokenomics & Market Cap
At the time of writing, the trading volume of Helium (HNT) is $20,650,535 in the last 24 hours, representing a -2.90% decrease from one day ago and signalling a recent fall in market activity. The highest price paid for Helium (HNT) is $54.88, which was recorded on Nov 12, 2021 (over 2 years). Comparatively, the current price is 83.66% lower than the all-time high price. The lowest price paid for Helium (HNT) is $0.1132, which was recorded on Apr 18, 2020 (almost 4 years). Comparatively, the current price is 7,818.35% higher than the all-time low price.
Market capitalization of Helium (HNT) is $1,292,672,450 and is ranked #83 on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of HNT tokens (140 Million tokens are tradable on the market today). The fully diluted valuation (FDV) of Helium (HNT) is $2,002,753,432. This is a statistical representation of the maximum market cap, assuming the maximum number of 220 Million HNT tokens are in circulation today. Depending on how the emission schedule of HNT tokens are designed, it might take multiple years before FDV is realized.
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