The Helium project: revolutionizing mining

The main thing you need to know about the Helium project is that it is a decentralized network, working with blockchain technology. The main objective of Helium is to provide network coverage to all devices connected to the Internet.

Aspects of the Helium project

Helium was founded in 2013 by Amir Haleem, Shawn Fanning and Sean Carey. Since its creation, the company has been working on identifying infrastructure failures in order to design the most efficient and effective IOT.

The Helium project is therefore primarily focused on the IOT (internet of objects). It was launched in July 2019 and operates through its own blockchain. This open source network allows communication between devices, and facilitates the sending of data over the network they share.

Mining crypto-assets is an almost ordinary process in the world of virtual currencies. The mining processes are, for the most part, known to anyone interested in this universe: we are obviously referring to the Proof of Work (PoW) and the Proof of Stake (PoS). The Helium project, whose goal is to revolutionize mining, allows itself to operate in a different way with regard to token mining: it uses the Proof of Coverage protocol, which consists of adding new nodes to its network.

This action will allow the network to spread over a larger "area", but also add a layer of security for each node added. Helium thus wants to "mine cryptocurrency through radio waves". The company uses this method of mining in order not to increase the ecological impact of protocols based on the Proof of Work because this method is highly environmentally damaging.

The most widespread example of this impact is that of Bitcoin, the world's leading crypto-asset, whose mining (carried out largely in China) requires a large amount of electricity consumption and therefore, greater, stronger and more harmful emissions for the environment, and of course, human beings.

Network and main technologies

This network, also called "The People's Network" is operational thanks to advanced technologies that allow true decentralization:

– HNT Tokens: As stated before, these tokens are earned by individuals through the use of the Helium hotspot which validates wireless coverage when devices connect to it.

– Data Credits: Data Credits allow data to be sent directly over the network and are also used for blockchain transaction fees.

– LongFi and LoRaWAN: LongFi technology takes into account usage data and offers roaming capabilities so that users only pay based on network usage. LoRaWAN technology is a networking protocol that uses Semtech's LoRa modulation scheme (short description). The radio waves of this technology communicate with LoRaWAN gateways to perform encryption and authentication operations.

The Helium company's token: the HNT

The HNT is the native crypto of the Helium blockchain. It was designed to meet the needs of hotspot hosts who deploy and maintain network coverage, and companies who use the network to create applications in the interest of the IOT.

Mining and Stacking Tokens

How does HNT mining work?

Every user of the helium network can engage in the activity of mining this crypto, including through a particular tool: the indoor Nebra HNT. When they use the latter, they provide network coverage in their area and also participate in the mining of the crypto.

There is also an outdoor version for this product which, after being installed on a roof or a building, works in the same way but on a larger scale (solution adapted for cities, towns…)

Miners earn more tokens when they are close to other miners. This is possible thanks to the Proof of Cover, a mining process used by Helium.

Stacking of HNT tokens

Stacking is a process that allows users to store funds for the purpose of earning a reward. This process requires a financial investment in Helium's crypto, unlike mining which is only a computer investment. The stacking strategy is an alternative to mining and is used by many networks.