The main thing you need to know about the Helium project is that it is a decentralised network operating using blockchain technology. Helium’s main objective is to provide network coverage for 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 runs on its own blockchain. This open source network enables communication between devices, and makes it easier to send data over the network they share.
Mining cryto-assets is an almost commonplace process in the world of virtual currencies. Most mining processes are familiar to anyone interested in this world: we are of course referring to Proof of Work (PoW) and Proof of Stake (PoS). The Helium project, which aims to revolutionise token mining, takes a different approach to token mining: it uses the Proof of Coverage protocol, which involves adding new nodes to the network.
This action will allow the network to spread over a larger “surface”, but also to add a layer of security for each node added. Helium’s aim is to “mine cryptocurrency using radio waves”. The company is using this method of mining so as not to increase the ecological impact of protocols based on the Proof of Work, as this method is very harmful to the environment.
The most widespread example of this impact is Bitcoin, the world’s leading crypto-asset, the mining of which (largely carried out in China) requires high power consumption and therefore greater, stronger and more harmful emissions for the environment and, of course, human beings.
Network and main technologies
The Helium network is a long-range network made up of numerous hotspots providing public network coverage. Users of this network are rewarded with Helium’s own crypto, the HNT.
This network, also known as “The People’s Network”, operates using cutting-edge technologies that enable true decentralisation:
– HNT tokens: as previously stated, 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 usage data into account and offers roaming capabilities so that users only pay as they use the network. 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 identification operations.
Helium’s token: the HNT
The HNT is the native crypto of the Helium blockchain. It has been designed to meet the needs of hotspot hosts who deploy and maintain network coverage, and businesses that use the network to create applications in the interests of the IOT.
Mining and stacking tokens
How does HNT mining work?
Any user of the helium network can engage in the activity of mining this crypto, thanks in particular to a special tool: the indoor Nebra HNT. When they use it, they provide network coverage in their sector and also take part in crypto mining.
There is also an outdoor version of this product which, after being installed on a roof or building, works in the same way but on a larger scale (a solution suited to towns and cities).
Miners earn more tokens when they are close to other miners. This is made possible by the Proof of Cover mining process used by Helium.
Stacking HNT tokens
Stacking is a process that allows users to store funds in order to receive a reward. This process requires a financial investment in Helium’s crypto, unlike mining, which is simply an IT investment. The stacking strategy is an alternative to minning and is used by many networks.
