What is Helium（HNT）? Meet the decentralized wireless network of the future

What is Helium? Helium is a software and hardware provider whose main goal is to provide decentralized wireless services across the globe through its user base and miners which function as data-gatherers and hotspots for people to connect to the networks wherever they are. It does so by splitting the Helium ecosystem into two segments; the ones who use the networks and the providers, who program and activate the hardware, receiving HNT token rewards in return.

Helium’s Decentralized Wireless Network: Helium’s DWN is split into three sections: devices, miners and routers.

1.Devices connect to the network and keep track of which miners should be receiving rewards by routers for their data.

2.Simultaneously, miners send the location of those devices connected to the wireless network by sharing their data and geolocation confirming that the rewards request and the particular miner providing the service match.

3.Routers confirm that the device data was delivered to the proper miner and reward them while devices continue to use the wireless services uninterruptibly.

The HNT token: The HNT token is the core economic driver for all transactions present in the network. When one hires Helium services, it pays through HNT. When someone builds or purchases mining hardware, it receives rewards in HNT and must also stake HNT to keep the hotspot active in their area. Same for routers, who must send rewards for their application data through HNT as well.


The crypto market is always full of surprises and innovations. Whether it’s within DeFi, NFTs, Metaverse or more, there is little chance that even the biggest experts are able to figure out what might actually come next for crypto innovation in the upcoming two, five, maybe even ten years. But one thing is very certain in their minds; whatever it is, it will revolve around decentralization, finance and most of the time, software.

Yet once in a while new projects come along that cross the line of the digitalization that cryptocurrencies and blockchain technologies seek, bringing to life physical products that combine the best aspects of web 3 with hardware to make our lives easier and more efficient. Within this very narrow category in crypto, one of the most prominent projects is Helium (HNT).

In this article, we go through the Helium crypto project and what makes it so innovative; the decentralized product, the tokens and how the network functions.

What is Helium?

---

In a nutshell, Helium is a software and hardware provider whose main goal is to provide decentralized wireless services across the globe through its user base and miners which function as data-gatherers and hotspots for people to connect to the networks wherever they are. It does so by splitting the Helium ecosystem into two segments; the ones who use the networks and the providers, who program and activate the hardware, receiving HNT token rewards in return.

Founded in 2013 by developers Shawn Fanning, Amir Haleem and Sean Carey, Helium has the mission of bringing wireless services to anyone in the world. Calling their project “the people’s network,” Helium currently accounts for wireless services in over 40,000 cities across 160 countries.

Helium is also the leading solution in becoming the first-ever global distribution network that provides coverage in public wireless hotspots, with long-range and low potency to the Internet of things (IoT) sensors and devices that are compatible with LoraWAN – a cloud-based medium to access control and operability of wireless networks.

Until the late 2010s, Helium did not include cryptos and blockchain technology in its services. Adopting blockchain technology, allowed Helium to fully decentralize the coverage of IoT devices, resulting in an open network capable of connecting any LoraWAN-compatible device, anywhere in the world, in the most cost-effective way possible. In other words, wherever Helium users are, if there is a Helium hotspot nearby then they are good to go on their internet usage.

But how does Helium manage to accomplish this feat? To put it simply, it relies on three main aspects of its business: its decentralized wireless network protocol (DWN), blockchain technology and the HNT token.

What is Helium’s DWN?

---

While the services from Helium can be split into users and providers, Helium’s Decentralized Wireless Network is actually split into three sections in order to function: we have the devices, the miners and the routers.

The devices, such as any smartphone or computer that is compatible with the Helium network and LoraWAN, are in charge of collecting and sending encrypted data from the internet and onto the blockchain, where it is stored in order to strengthen the network and hold real-time data of what the network is being used for and where it holds the strongest signal.

Miners, however, are the different hardware that is available for purchase through Helium or the ones that are compatible with their protocol, which we’ll get to in a moment. Although all three pillars are essential to get Helium up and running, miners play the most important role. Miners are the ones actually responsible for providing wireless internet coverage to the network, making Helium what it sought out to be - a fully decentralized network of devices spread across the globe.

Miners join the network by purchasing/creating the device to initiate what they call a hotspot by staking HNT tokens in proportion to the density of other miners operating in their area. Therefore, the “busier” an area is with several miners and hotspots in place, the more tokens are needed to stake and receive rewards in that particular radius.

Meanwhile, routers are a tertiary portion of the network - internet applications unrelated to Helium that pay miners in rewards to receive information on the location of devices and therefore conduct proper transmission of data.

The structure for the network, therefore, occurs as such:

1.Devices connect to the network and keep track of which miners should be receiving rewards by routers for their data.

2.Simultaneously, miners send the location of those devices connected to the wireless network by sharing their data and geolocation confirming that the rewards request and the particular miner providing the service match.

3.Routers confirm that the device data was delivered to the proper miner and reward them while devices continue to use the wireless services uninterruptibly.

The HNT Token

---

As mentioned in the previous section, the HNT token holds the function of rewarding miners with their work, which feeds the blockchain and creates more decentralized hotspots throughout the world. The bigger the network, the higher number of routers - internet applications - willing to reward miners for their services that allow routers to offer the applications to devices connected through Helium.

But the token’s responsibility is much more general than that, being the core economic driver for all transactions present in the network. When one hires Helium services, it pays through HNT. When someone builds or purchases mining hardware, it receives rewards in HNT and must also stake HNT to keep the hotspot active in their area. Same for routers, who must send rewards for their application data through HNT as well.



Author: Gate.io Researcher: Victor Bastos
* This article represents only the views of the researcher and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.