What is HNT token and Helium Ecosystem?
The Helium blockchain is the host for the Helium Network, which in turn supports a decentralized connection-oriented network known as The People’s Network. As a decentralized machine network, The People’s Network allows anyone to connect to the network using physical Helium Hotspot devices. This is a revolutionary solution: the cost of connecting to The People’s Network is only a part of the opportunity costs for cellular devices. Moreover, enterprises using the Helium Network need to pay only for the actual use of data. The cost can be transparently calculated taking into account the number of devices in the network and the number of data transfer transactions.
Helium Hotspot devices innovatively mine their own HNT token, which occupies 61 positions on the Coinmarketrate.com. Moreover, Helium Hotspot devices are only compatible with other devices using LoRaWAN (Low-power Global Network) technology. LoRaWAN provides a network for environmental sensors, weather meters or GPS trackers. Any device that transmits small or frequent amounts of data can work together with LoRaWAN as an Internet of Things (IoT) device.
In turn, the Helium blockchain positions itself as a blockchain for physical decentralized connection. Helium hotspots will use existing Wi-Fi or Internet access to transmit data packets. However, access points are not intended to be used instead of mobile cellular communications or home Wi-Fi.
People`s network
People’s Network is a decentralized open source wireless network, which is managed through an open alliance. Claiming to be the fastest growing wireless network in the world, The People’s Network provides an affordable, versatile and secure wireless connection. Unlike most cellular technologies, The People’s Network is a much more efficient and cost-effective alternative to wireless data transmission and connectivity.
Moreover, The People’s Network can easily create scalable applications with affordable contracts. Any Internet of Things (IoT) device, from bicycle trackers to smart pet collars, can connect to Helium Hotspots without using cellular or Wi-Fi networks. In addition, the cost of running a sensor in the Helium blockchain can be only a few cents per year.
HNT Token
The HNT token functions as a multifunctional token, creating economic incentives for the network, increasing its security. Moreover, the HNT token works together with Data Credits (DC) to access certain aspects of the Helium network and the rest of the Helium ecosystem.
The owners of Helium Hotspot, through trusted persons, put HNT tokens into circulation during the mining process using a new radio frequency (RF) technology. With a maximum limited supply of 223 million HNT tokens, the distribution of HNT tokens will be adjusted over time according to the needs of The People’s Network and the Helium Network.
The initial rate of distribution of HNT tokens was five million per month, with halving occurring every two years. As of August 1, 2021, the release rate was halved, to 2.5 million HNT tokens per month.
The Helium Network on its website transparently shows the distribution of HNT tokens during the first year. Both Helium, Inc., its investors, and the Helium Hotspot infrastructure receive an equal 35% share in the distribution of tokens. This should reward users for the security of the network, as well as the founders and investors who currently manage the management of the Helium blockchain. This may be changed next year. The remaining 30% will be used for remuneration for data transmission over the network, which will encourage honest behavior of devices in the Helium network.
A larger number of HNT tokens will be allocated to the owners of Helium Hotspot in the initial stages to facilitate the implementation of the Helium blockchain and the Helium ecosystem. The project is aimed at increasing the number of users, thereby expanding and strengthening the security of the network.
Studying the ecosystem
From education and contact tracking with Covid-19, to pest control solutions and water measurement in the Internet of Things (IoT), Helium has integrated with many enterprises and corporations. In addition, the Helium ecosystem is expanding through many different partnerships with the expansion of its services for the HNT token and Helium hotspots. These services include: Helium Network Toolkit, Hotspot Chat, Network Analytics and Hotspot Optimizer, and many others. In addition, the Helium ecosystem offers various stacking services to token holders, as in SpaceBot. This includes the Helium Rising validator pool. Alternatively, users can try the Automated Helium Betting service to receive passive income using cryptocurrency in HNT tokens.
Helium Network provides a variety of software and hardware solutions to support The People’s Network. Below, we discussed how the Helium ecosystem and The People’s Network work.
Mining
One of the main incentives of the Helium ecosystem is to receive passive income from the production of Helium tokens (HNT), which ensure the operation of the People’s Network. Helium is a completely new mining model available to everyone. The project takes into account non-technical users. Therefore, for HNT mining, you just need to install a hardware device in your window and download the Helium application to your smartphone.
This is due to the fact that the network uses a new radio frequency (RF) technology for HNT mining. Installing a Helium Hotspot device automatically provides wireless network coverage for millions of devices. Using a combination of the main technologies described in brief (LoRaWAN, LongFi and a mechanism known as Proof-of-Coverage), access points consume only about 5 watts of energy, like an LED lamp.
Helium Hotspot
There are several devices that can mine HNT tokens. However, HNT Miner was the first to have more than 20,000 Helium hotspots activated in more than 2,000 cities. In accordance with the idea of The People’s Network, Helium Hotspot proves that cryptocurrency mining can be quite simple and achievable for everyone. As of August 15, 2021, there are more than 125,000 active access points worldwide.
Helium Hotspot allows Internet of Things (IoT) devices to connect to a network running on Helium LongFi without any problems. Using The People’s Network, IoT devices can communicate with a long range. On average, this is about 200 times more than Wi-Fi capabilities. Users can manage the Helium Hotspot through the Helium app, which is available for download on most smartphones. Here users can view their income and the status of the access point.
Due to the incredible demand, Helium Hotspot is now sold out in both North America and Europe. However, after the implementation of the Helium (HIP) 19 Improvement Proposal, third-party manufacturers who want to mine HNT can do so with the approval of the community. Some popular HNT mining brands include Bobcat (Miner 300), Nebra and RAK Miners.
The main technologies of the Helium ecosystem
People’s Network uses the Helium blockchain and its main open source technologies in the Helium ecosystem. In turn, The People’s Network can contribute to the creation of a model of a decentralized wireless infrastructure, using the following main functions:
- LPWAN
LPWAN is an abbreviation for “low-power broadband network” and a type of wireless network that allows battery-powered devices to communicate over long distances wirelessly.
- LoRaWAN
Using LPWAN technology, LoRaWAN has developed energy on a low-energy scale. LoRaWAN has created ” secure bidirectional communication for the Internet of Things (IoT), machine-to-machine (M2M) and urban applications. The network works similarly to 5G. However, this does not require the same huge and sometimes intrusive infrastructure. Instead, LoRaWAN runs on much smaller devices. In addition, 5G sensors start at $30 each, while LoRa sensors cost from $0.20 to $0.50 each. Some media outlets claim that LoRaWAN will temporarily replace 5G for the Internet of Things (IoT) in networks.
The Helium chain and the LoRaWAN network are fully compatible. However, there is a difference between the two. The LoRaWAN Network Server (LNS) is centralized, operates as a single object, while the Helium network strives for decentralization. Thus, Helium uses the “multi-tenancy” function of the LoRaWAN Network Server (LNS) for Hotspots. This means that the LoRaWAN network from Helium is unique, which allows independent and private network servers to be fully compatible with the public wireless infrastructure!
- Helium LongFi
LongFi is a vital cog in the ecosystem. He performs three main duties. First, LongFi simplifies data transfer between the LoRaWAN wireless protocol and the Helium blockchain. In addition, LongFi ensures that any LoRaWAN device is compatible with the network and can transmit data in the Helium network. Third, LongFi supports, allowing firmware to pay for access using Data Credits. This allows users to pay for data only depending on their use in the personal network.
- Data Loans
People’s Network works with a dual token system using the Burn-and-Mint Equilibrium (BME) token model. In this model, there are two exchange assets: the HNT token and Data Credits. However, to get data credits, you need to write their HNT tokens. Data credits can give owners access to events and opportunities in the People’s Network and further in the Helium ecosystem. In addition, data credits are the only acceptable means of exchange in the People’s Network. In addition, Data Credits can pay transaction fees in the Helium blockchain and send data via Helium LongFi.
- Proof-of-Coverage
The Helium blockchain uses a new consensus mechanism known as Proof-of-Coverage (PoC). PoC is the result of innovations in the field of radio frequency (RF) technology, which simplifies the creation of a decentralized computer network of access points for verifying transactions, protecting the network and solving various “problems”.
Thanks to the Proof-of-Coverage (PoC) algorithm, access points earn HNT tokens by performing special tasks called “beacons”. Beacons require access points to check and monitor the transaction payload of nearby access points. Consequently, hotspots with neighbors earn more HNT tokens, since they can both issue and receive calls. Lone access points cannot check their beacons and can only create problems.
Helium Network Validators
One of the latest additions to the Helium ecosystem is the Helium Network validators. Validators have more responsibility than miners, and perform consistent work, such as verifying transactions and adding blocks to the Helium block chain. In turn, Helium validators contribute to the security and scalability of the network and earn HNT rewards in return.
To become a Helium validator, you will need to delegate 10,000 HNT tokens. Stacking is an irreversible transaction in which tokens are blocked for the duration of the validator’s operation. In addition, validators will need a suitable environment to run the node software. Helium validators receive a reward for HNT tokens directly to their crypto wallet at the end of each epoch (approximately every 30 blocks). In addition, validators who do not comply with uptime requirements or do not update their rewards will be fined, receiving less rewards.
To stop being a Helium validator, users will need to unlock their HNT tokens. The validator will then enter a recovery period of 250,000 blocks (approximately five months) before seeing their funds reappear in their wallets. During the recovery period, users will no longer receive rewards in the form of HNT tokens.
Conclusive thoughts
The Helium blockchain is the master of the entire ecosystem. This covers the Helium network, which supports The People’s Network, the proprietary HNT token, and the Helium Hotspot, allowing users to mine HNT tokens using the new Proof-of-Coverage consensus model.
Helium Hotspot has been widely distributed around the world. They provide a wireless network for Internet of Things (IoT) devices. Devices can connect to People’s Network for a small part of the cost, and not as for connecting to 5G. However, Helium is considering expanding its services to include a second wireless network in partnership with FreedomFi, which will facilitate 5G connectivity.
In turn, the Helium ecosystem is referred to as a decentralized machine network and the world’s first physical block chain. Moreover, unlike most other equipment for the mining industry, which is often large, heavy, expensive and requires a lot of energy, Helium Hotspot takes up a minimum of space. In addition, they use the same amount of energy as an LED lamp.
People’s Network uses the Burn-and-Mint Equilibrium (BME) dual token model. This means that users must burn their mined HNT tokens in order to receive data credits for use as a unit of exchange on the network.
Moreover, it increases the shortage of the HNT token, thereby increasing the value. With its new mechanisms and innovative decentralized solutions for wireless communication, Helium is at the forefront of decentralized machine networks, physical blockchains, as well as communication and connectivity to the Internet of Things (IoT).