The Helium network uses Internet-connected (IoT) devices for data exchange. Miners are providers of Helium Network coverage. Helium Hotspots utilize RF radio waves to provide coverage in exchange for Helium tokens. Its placement and antenna strength are key factors contributing to the earning potential of HNT, so miners earn more HNT if they transmit and receive more Helium hotspots.
Shawn Fanning, Amir Haleem, and Sean Carey founded Helium in 2013 to simplify the creation of connected devices. According to Helium, current wireless connection options are inadequate to support the next wave of devices. The solution to this problem is the Helium Hotspot, consisting of a physical blockchain node and perhaps a wireless gateway for participants to accept payments in HNT, the native token.
Helium was founded and launched in 2013.
With Helium, the community of HNT holders creates a secure, decentralized, and global network for IoT devices. A node is a hotspot operated by an HNT holder. Users earn points for contributing to the network’s functionality by hosting Hotspots and managing nodes.
WiFi can support IoT devices, but it poses privacy concerns to connect as many devices and technologies as possible. The Helium network provides 200 times greater coverage than WiFi connections in the IoT due to its decentralized architecture and consensus mechanism.
The Proof of Coverage consensus mechanism rewards HNT holders and node operators. Hotspots can be created by purchasing mining devices from the Helium website. Proof of coverage mechanism verifies the radio frequencies produced by miners linked to the network and hotspot locations. There are three roles crucial to the network’s functionality:
A Hotspot network role also affects the rewards awarded through the system.
In response to potential threats:
- One port has to be open in both directions for Helium Hotspot to work. Another inbound port can be protected behind a firewall, depending on your security needs.
- Helium devices are protected from unauthorized access to the used spectrum by hardware security. Because AES private key encryption is built-in at the chip level, the networking security is also built-in.
- In the countries and regions where Helium Hotspots operate, all hotspots must adhere to wireless and radio regulations.
- Devices communicate with the hotspot over LongFi, not IP (Internet Protocol), and the bandwidth they consume is 1-5kb/s (similar to the size of a text message).
- Despite being very cheap to use, Helium’s network isn’t free. Users have to pay for every transaction. Potential scammers are therefore discouraged.
- Helium wallets (included within the Helium App) protect the wallet’s private key with asymmetric keys.
There is a possibility it’s profitable. The coin’s value will likely increase over the long term, despite mixed price predictions.