Although there are thousands of cryptocurrencies addressing a wide range of use cases, there are still relatively few that are tapping into the new sector of Internet of Things. Crypto fans may have heard of Iota (MIOTA), one of the most popular blockless platforms that connect devices with IoT, but Helium emerges as a blockchain-based project with the same use case and a different approach.
Helium is described as a blockchain-based network for IoT devices that uses nodes as Hotspots to connect wireless devices to the network. As the need for the Internet of Things is growing exponentially with the development of technology, Helium becomes an ever more relevant project. Interested in Helium (HNT), but not sure what it’s all about or where to even begin? That is what we’ll be answering in this article alongside how does Helium network work and how to use Helium network.
What is Helium (HNT)?
Helium is a blockchain-based network that connects IoT devices. Helium technology enables communication between the devices, while the system sends data across the network nodes. The nodes that compose the network are known as Hotspots in the Helium system. The Hotspots provide public network coverage and rely on LoRaWAN. LoRaWAN is a media access control layer protocol that has a cloud component to which platforms like Helium can connect.
Helium is one of the biggest LoRaWAN networks with over 25,000 Hotspots that act as nodes on the network. Hotspots combine the power of LoRaWAN and a mining device based on blockchain technology.
Helium is also dubbed “The People’s Network” and aims to prepare an efficient and functional IoT for the future while addressing all the issues and inadequate solutions. One of the biggest problems in the IoT sector is the privacy of popular Internet of Things hubs, such as Google or Amazon. Thanks to decentralization and the blockchain technology used for building Helium, privacy soon won’t be a concern when it comes to connecting devices to the Internet of Things.
How Does Helium Network Work?
Helium aims to create a reliable, decentralized, and global network for IoT devices that relies on the community of HNT holders. The network consists of nodes, i.e. Hotspots that are run by node operators who are actually HNT holders. By hosting Hotspots and managing nodes, users are incentivized for their participation in the network’s functionality.
WiFi already has support for IoT devices. However, supporting as many different devices as possible brings up privacy concerns. Helium solves this issue using a decentralized architecture and consensus mechanism that gives the network 200 times greater coverage compared with WiFi connection with the IoT.
Coverage, and is also responsible for distributing rewards to HNT holders and node operators. Users need to purchase a mining device from the Helium website to set up Hotspots. Miners produce radio frequencies by connecting to the network, while the Proof of Coverage mechanism validates Hotspot locations.
Network participants can have one of the three roles crucial to the network’s functionality: Challenger, Transmitter, and Witness. The rewards distributed through the system also depend on the role in the Hotspot network.
How is the Helium Network Secured?
The Helium network is secured through the use of the Proof of Coverage protocol which relies on network participants to ensure network stability through mining. Proof of Coverage is an advanced form of Proof of Work, which is why the network relies on miners for security.
The protocol was specifically developed to ensure connection even with low power, so mining is enabled with a simple device that you can buy from Helium and 5W power. That is how Helium achieves efficiency and facilitates a connection between devices on the Internet of Things network.
How to Use Helium Network?
Helium is used to easily connect devices on the Internet of Things by using low power with efficiency and effectiveness. Helium also enables mining of HNT, as well as staking, so users can make a profit based on their network participation.
To start using Helium as Hotspot node providers, users can buy special mining devices that are available on the official Helium website and earn rewards based on their participation. The rewards are distributed in HNT. HNT can be sold in the cryptocurrency market and used to generate non-exchangeable Data Credits.
Helium creates a unique infrastructure for an entirely new wireless economy empowered by decentralization, hence the name “The People’s Network”.
Conclusion
Learning how does Helium network work brings conviction as Helium revolutionizes the way blockchain is used to facilitate connection for devices on the Internet of Things, all while incentivizing network participants. Thanks to the specially designed mining devices that allow users to mine more efficiently with less power, users can earn rewards in the form of HNT for supporting and securing the network.
As the need to connect devices through the Internet of Things is becoming more important, Helium may find a useful place in the global network of IoT devices. With valuable technology that allows users to easily generate and distribute radio frequency for wireless devices, Helium justifies the name “The People’s Network”.
