Helium - The People's Network

Gabriel C. Gabriel C.
17 Mar 2022
6 min read
Share article:


Although thousands of cryptocurrencies target a wide range of use cases, only a few are tapping into the nascent Internet of Things industry. Iota (MIOTA), one of the most popular platforms for connecting devices with IoT, may be familiar to crypto enthusiasts. Still, Helium is a blockchain-based project with a similar use case and a different methodology.

Helium is a blockchain-based network for IoT devices that connects wireless devices via nodes that act as hotspots. The network is powered by the native token HNT, which is paid out whenever hotspots transfer connection data across the network. 

What is Helium?

Helium is a dispersed network of long-range wireless hotspots launched in July 2019. The goal is to construct "The People's Powered Network," which will be a blockchain-powered network for the Internet of Things (IoT) devices. Helium is a global hotspot network that provides public, long-range wireless coverage for LoRa-enabled IoT devices.

Hotspots generate and are reimbursed in HNT, the Helium blockchain's native coin. The Helium Blockchain is an open-source, public blockchain explicitly designed to encourage the development of physical, decentralized wireless networks. Together with tens of thousands of Hotspots, the Helium blockchain now provides access to the world's largest LoRaWAN® network.

The Helium Network is a physical wireless network that succeeds by providing a high level of dependable coverage to consumers who deploy connected devices. As a result, it necessitated the development of a functioning algorithm specifically for this situation. Proof-of-Coverage uses radio frequency (RF) to generate proofs that are significant to the Helium Network and its participants. PoC relies on the following traits in particular:

⦁ RF has a restricted physical propagation range.

⦁ The strength of an RF signal received is inversely related to the square of the transmitter's distance.

⦁ RF has no delay because it travels at the speed of light.

Using these qualities, the blockchain continually interrogates Hotspots through an algorithm called a "PoC Challenge." The ultimate strength of Proof-of-Coverage is that the data generated by ongoing proofs and recorded in the Helium blockchain is irrefutable evidence of the wireless coverage provided by Network Hotspots.

Helium Network Architecture


Hotspots are what make up the Helium Network. A LoRaWAN® gateway connected to a miner is known as a Hotspot. A miner is a small computer that runs on a Raspberry Pi and can be set up quickly at home. A miner is a LoRaWAN®-based device that extends coverage to LoRa nodes within its range. Miners help the device by connecting it to the Application Server. In exchange, the network rewards the miner with Helium Network Tokens (HNT), Helium's native token. These HNTs are stored in the miner's wallet and redeemed for cash.

The method for determining the amount is detailed in the Helium Improvement Protocol. There are 30 versions of this, with Version 17 entirely dedicated to the Incentivization and related procedure. The miners connect via a peer-to-peer network where several computers are connected to one other and share equal responsibilities for network maintenance.

Helium’s Proof-of-Coverage

Proof of Coverage (PoC) is a revolutionary work method that rewards users for checking coverage establishing location and network connectivity. The Helium Consensus System, which includes the HoneyBadgerBFT multi-party computing consensus protocol, is the foundation for Proof of Coverage.

Participants use Hotspots to help create the network and earn Helium mining rewards thanks to a unique incentive scheme based on the Helium blockchain. The Helium Network uses radio wave technology instead of typical mining rigs like GPUs or ASICs to implement mining. Thus, making Hotspots far less energy-intensive than their traditional equivalents.

Hotspots are sometimes subjected to cryptographic tests to ensure that they deliver radio coverage in a particular location and at a specific time. These tests are given to Hotspot operators at random and automatically, and passing them earns them HNT rewards.

Helium Hotspots can potentially generate HNT by sending data across the network from neighbouring devices. The more data you send, the more points you gain.

Hotspots earn HNT in proportion to the value they add to the Helium ecosystem by completing proof-of-concept challenges. Lastly, by acting as witnesses for peers' performance and transferring device data, network data transfer accounts for most HNT payouts.

Helium Ecosystem


Helium has merged with many enterprises and corporations, from education and Covid-19 contact tracing to internet-of-things (IoT) pest management and water metering systems. Furthermore, the Helium ecosystem is expanding its services for the HNT currency and Helium Hotspots through various collaborations. Helium Network Toolkit, Hotspot Chat, network statistics, and a Hotspot optimizer are just a few available features. Additionally, the Helium ecosystem provides token holders with various staking options. Helium Rising, a validator pool, is part of this. Users can also use the Automated Helium Staking service to make a passive income with crypto in the form of HNT tokens.

Helium Mining

Earning a passive income through Helium token (HNT) mining, which powers The People's Network, is one of the most appealing aspects of the Helium ecosystem. Helium introduces a whole new mining model that is accessible to anybody. Non-technical users are taken into account in the project. As a result, mining HNT requires only installing a hardware device on your window and installing the Helium software on your smartphone.


Helium Hotspot

The Helium Hotspot, which runs on Helium LongFi, allows internet-of-things (IoT) devices to connect to The People's Network easily. IoT devices may connect across long distances via The People's Network. This is approximately 200 times farther than WiFi capabilities. The Helium Hotspot is controlled by the Helium app, downloaded on most smartphones. Currently, there are more than 550,000 Helium hotspots worldwide.

Helium Ecosystem Core Technology

Within the Helium ecosystem, the People's Network uses the Helium blockchain and its core open-source technology. As a result of the basic features listed below, The People's Network can allow a decentralized wireless infrastructure paradigm.

Helium LongFi

Helium LongFi is an essential piece of the Helium puzzle. LongFi is in charge of three major tasks. LongFi, for starters, makes data transfer between the LoRaWAN® wireless protocol and the Helium blockchain easier. LongFi also assures that any LoRaWAN® ® device may communicate over the Helium Network and is compatible with The People's Network. Finally, LongFi offers micropayments, allowing devices to use Data Credits to pay for their connection.

Data Credits

The People's Network uses the Burn-and-Mint Equilibrium (BME) token model to manage a dual token system. The HNT coin and Data Credits are the two exchange assets in this architecture. To get Data Credits, however, one must burn their HNT tokens. Holders of Data Credits will access activities and opportunities on The People's Network and throughout the Helium ecosystem. Furthermore, on The People's Network, Data Credits are the only accepted form of payment. Data Credits can also be used to pay for transaction fees on the Helium blockchain and transport data bytes via Helium LongFi.

Helium Network Validators

The Helium Network validators are one of the most recent contributions to the Helium ecosystem. Validators have more authority than miners and are in charge of consensus tasks like validating transactions and adding blocks to the Helium blockchain. Helium validators, in turn, contribute to the network's security and scalability while also earning HNT rewards.

Helium transforms the way blockchain links devices on the Internet of Things while also encouraging network participants. Users can earn HNT as a reward for supporting and securing the network thanks to specifically built mining devices that let them mine more efficiently with less power.

Lastly, Helium may find a valuable role in the global network of IoT devices as the necessity to link devices via the Internet of Things becomes more critical. Helium justifies the appellation "The People's Network" with valuable technology allowing users to generate and distribute radio frequency for wireless devices effortlessly.

Don't forget to follow us @cryptonezo to stay updated with the latest blockchain and cryptocurrency news

Gabriel C.
Gabriel C.
About the Author

Tech Visionary & Entrepreneur, Founder & CEO @ Nezo Global

Related Articles