Helium (HNT) is a decentralized wireless network founded and launched in 2013 to empower the Internet of Things using blockchain wireless infrastructure. It was originally focused on improving IoT connectivity but really gained traction with the release of the Helium blockchain in 2019 that allowed for the creation of a decentralized network of wireless hotspots. By allowing anyone to create and manage decentralized wireless hotspots, Helium provides an open-sourced, secure, and global solution for connecting IoT devices at an ultra-low cost. HNT, which is utilized in rewarding participants that contribute to the network through running hotspots and verifying transactions. On the Helium ecosystem, there are also Data Credits (DCs), which pay for the usage of the network, pegged to a fiat value.
Helium was founded by a team of ingenious technologists and entrepreneurs, namely: Amir Haleem, Shawn Fanning, and Sean Carey. Haleem is a renowned expert in gaming/wireless systems who dreamed of a decentralized network of IoT. Fanning of Napster fame brought experience in peer-to-peer networking. And Carey is a systems architect bringing vast experience in scalable infrastructure. Together, they had a vision and amalgamation of skills that formed the building of a blockchain-powered network, which democratizes IoT connectivity through incentivizing community involvement.
The Helium decentralized wireless network is blockchain-powered and designed for Internet of Things (IoT) connectivity. Helium’s unique consensus mechanism, Proof-of-Coverage (PoC), validates the wireless coverage provided by hotspots. Hotspots earn HNT based on their contribution to network coverage and quality. Individuals deploy Helium-compatible hotspots to provide IoT devices with secure and low-cost wireless connectivity.
Helium uses the LongFi protocol, which combines LoRaWAN wireless technology with blockchain, optimizing range and power efficiency. Non-tradable tokens pegged to fiat value, Data Credits (DCs), pay for data transmission on the network and ensure predictable costs for IoT device operators. HNT undergoes periodic halvings, which reduce the issuance rate, aligning incentives with the growth of the network.
Helium provides a decentralized alternative to traditional IoT networks, ensuring lower costs and extended coverage. Helium provides scalable wireless coverage globally by leveraging individual hotspot operators. HNT incentivizes network participants, while DCs ensure cost stability for IoT usage. The LongFi protocol has low power requirements, making it very suitable for IoT devices with limited energy resources.
Helium’s blockchain supports a moderate TPS suitable for IoT data transfers, having scalability ensured through its distributed architecture. With migration to Solana, TPS could increase to 65,000 transactions per second, enhancing scalability and transaction volume.
Strategic partnerships by Helium have been made to help increase the growth of its ecosystem and the adoption of the network. A partnership with Semtech—a leading LoRaWAN technology player—will ensure seamless integration of LongFi for efficient IoT connectivity. A partnership with FreedomFi extends Helium’s network to support 5G hotspots, unlocking broader use cases and bridging IoT with high-speed connectivity. This partnership with Dish Network marked the entrance of Helium into telecom collaborations, thus empowering users to deploy 5G nodes and expand wireless reach.
With Google Cloud’s robust infrastructure, scalability, reliability, and operational efficiency for blockchain are guaranteed at Helium. Solid partnerships with various manufacturers of IoT drive compatibility and adoption of the network designed by Helium, therefore fostering wider integrations across industries.
Helium is continuing to show very rapid innovation and community growth. Helium’s network embraced 5G technology, melding IoT capability with high-speed connectivity to power an extended array of applications. Community-driven decision-making was also enabled at Helium through Helium Improvement Proposals, ensuring decentralization in the protocol evolution.
The migration to the Solana blockchain at Helium improves scalability and transaction throughput while positioning it for large-scale adoption. By building, operating, and deploying over 1 million hotspots worldwide, Helium has indeed become the world’s largest decentralized wireless network.
Such collaboration with other LoRaWAN networks offers seamless roaming capability for devices across different regions, allowing improved IoT connectivity and usability throughout the world. These strategic collaborations and developments demonstrate Helium’s commitment to pioneering a scalable, decentralized wireless future to meet today’s connectivity demands.
As of December 18, 2024, HNT is trading at approximately $8.01. Performance drivers include the introduction of 5G, network migration to Solana, and partnerships with major players, which have boosted adoption and market confidence. Factors affecting price fluctuations are the expansion into 5G connectivity, attracting new participants and use cases, scalability enhancements from migrating to Solana, increased usage of IoT devices driving demand for Helium’s network and HNT, and the rapid increase in hotspot operators strengthening the network’s coverage and utility.
Helium extends IoT connectivity with its decentralized wireless network, which has a blockchain base. From Proof-of-Coverage and 5G integrations to future scalability enhancements, it is going to lead in IoT and wireless connectivity. With an ever-expanding ecosystem through partnerships, technology development, and community engagement, Helium is still at the forefront of the direction in decentralized wireless communication.
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FAQs
Q1. What is Helium used for?
- A: Helium provides decentralized wireless connectivity for IoT devices, enabling secure, low-cost data transmission.
Q2. What are Helium hotspots?
- A: Helium hotspots are devices deployed by individuals to provide wireless coverage and earn HNT rewards through Proof-of-Coverage.
Q3. How does Helium ensure scalability?
- A: Helium ensures scalability through its distributed architecture and plans to migrate its blockchain to Solana for enhanced performance.
Q4. What is the role of Data Credits (DCs)?
- A: Data Credits are non-tradable tokens used to pay for network usage, ensuring predictable costs for IoT device operators.