DEVELOPMENT
Let’s cover the subject of the Helium blockchain: what kind of network it is, what are the results for 2022, and development plans for 2023.
About Helium
What is Helium
Helium is an open-source public blockchain that encourages the creation of physical decentralized wireless networks. It is also a globally distributed network of access points that creates publicly available, long-range wireless coverage for Internet of Things (IoT) devices.
Helium access points are like an Internet router, providing broader and cheaper Internet access for everyone.
While most cryptocurrency projects focus on NFT or blockchain gaming, Helium stands out for several reasons:
- Provides cheap Internet access with broad bandwidth, including 5G.
- Allows users to generate revenue using a Helium hotspot.
APs participate in the network and are rewarded in HNT, the native cryptocurrency of the Helium blockchain.
Today, the Helium blockchain and its nearly one million access points, deployed by a global community, provide access to the largest decentralized wireless network in the world.
History and perspectives of the IoT market
In 2013, when Helium was founded, there were about 2.1 billion IoT devices worldwide. That’s far fewer than the 9.5 billion connected “non-IoT” devices, including cell phones, computers and tablets.
The two categories switched places in 2020. That year, there were 11.7 billion IoT devices and 9.9 billion non-IoT devices.
Projections suggest that by 2025, the disparity will become much more pronounced and the number of IoT devices will triple. The IoT market is expected to be worth $677 billion by that point and exceed the $1 trillion mark by 2030.
Helium’s performance for 2022
- IoT Network. The world’s largest IoT network with 975,000 access points deployed in 72,000 cities and 182 countries.
- 5G network. Some 7,009 5G access points have been deployed, including 3,677 indoor and 3,333 outdoor access points. And they are spread across 49 states and 1,470 U.S. cities.
- The network has new uses, such as Trackpac, Dronedek, Communityfi and others.
How much has been invested
According to known information about $365 million was invested in Helium. See table for details.
Current capitalization is $0.34 billion.
Total capitalization is $0.54 billion.
There are 62% of tokens in circulation.
The current price of HNT is $2.45. The price has fallen 96% from the highs.
What is an HNT token
HNT is a native token of the Helium protocol. The native token powers the entire ecosystem and rewards nodes participating in the blockchain.
- Miners earn HNT when they provide and verify wireless coverage and when devices on the network connect to the Internet via Helium access points.
- Helium’s maximum supply is limited to 223 million tokens. The total supply of HNTs is balanced as tokens are burned, ensuring that the maximum supply never exceeds 223 million tokens.
What makes Helium unique
Helium’s blockchain-based design can offer an advantage over traditional network connectivity:
- It’s far more reliable than a centralized company.
- Access points scattered across regions make it more scalable for global connectivity.
- Users are rewarded for participating in the system.
Helium is also quite an interesting network because it aims to create the next step in scalable wireless connectivity. With enough access points, Helium can connect billions of IoT devices globally at a cost far more affordable than any centralized network.
How Helium works
An IoT network based on LoRaWAN technology
At its core, Helium is a network of blockchain-linked access points.
Helium Hotspots are wireless IoT devices that can provide connectivity 200 times further than Wi-Fi. Depending on the region and requirements, as few as 50 hotspots may be needed to provide connectivity for an entire city.
The network combines the low-power and long-range capabilities of LoRaWAN technology with the reliability and security of Helium blockchain. The devices that connect to the Helium network are called access points, and they use radio waves to communicate with other access points and the Internet.
Access points are rewarded with a cryptocurrency token called Helium (HNT) for providing coverage and transmitting data on the network. The HNT is used as an incentive to encourage people to deploy and maintain access points, which in turn helps to increase network coverage and reliability.
Because it is a decentralized network, Helium is not only fully encrypted, making the information transmitted over the network confidential, but it can also provide a level of security that a centralized company cannot. Since access points are scattered around the world, an attack on one or more access points, cannot affect the operation of the network.
The 5G network
Historically, many mobile networks are built by top-down service providers (e.g., AT&T and Verizon in the U.S.). However, future networks are likely to be a hybrid of large carriers and human-owned 5G access points, due to consumer behavior requirements (higher bandwidth and lower latency requirements) and the physics of wireless radio communications requiring denser networks with more nodes, further increases in coverage area, and acquisition costs.
The Helium model decentralizes these costs and allows communities to participate in building robust, high-bandwidth networks using technologies such as CBRS and Wi-Fi.
How it became possible
It all started with allowing the use of public bandwidth known as CBRS (Citizens Broadband Radio Service). This opened the door for unlicensed users and corporate organizations that want to use 5G or LTE to set up their own mobile networks in the U.S.
The combination of the affordability of this technology, the existing Helium ecosystem, and the rewards of building a Helium IoT network for the first time provided an opportunity to build a new type of mobile network. A 5G network for phones and other devices can be built to provide useful coverage at scale with a superior economic model.
How it works in practice
You buy a FreedomFi “gateway” and connect it to your own wired Internet. You then earn a token called MOBILE to provide proof of coverage. The MOBILE token can always be converted to an HNT token, which is available for exchange on crypto exchanges.
The crypto scheme allows Helium to incentivize or disincentivize users regardless of whether coverage is required or not. If a Helium user wants coverage in Kansas, Helium can offer better incentives, whereas if Pittsburgh is saturated enough, Helium will reduce the reward for new access points in Pittsburgh.
Differences in building IoT and 5G networks
In many ways they are similar (i.e., the bigger the network, the better), but in other ways it is very different. For example, 5G access points can transmit much more data than LoRaWAN access points, but with much less range. High bandwidth and low latency are also critical to the usefulness of a 5G network.
How’s it going?
The IoT network. The world’s largest IoT network with 975,000 access points deployed in 72,000 cities and 182 countries.
5G network. The network has 7,009 5G access points, including 3,677 indoor and 3,333 outdoor access points. Meanwhile, they are spread across 49 states and 1,470 U.S. cities.
The 5G network is initially being built in the U.S. because it uses unlicensed CBRS spectrum available to the public.
Transition from proprietary blockchain to Solana
In September 2022, the developers of Helium released HIP 70, a new offering that aims to scale Helium to meet the current and future needs of network builders and users. To that end, HIP 70 offers a new architecture for proof-of-coverage and data transmission, as well as a transition to Solana’s new Layer 1 (L1) blockchain.
The key benefits of this transition are:
- More rewards for Hotspot owners. With this offer, 2 million HNTs will return to the rewards pool each year, benefiting hotspot owners on IoT and 5G networks.
- More chances to mine. Confirmations will happen every hour instead of every few days.
- The network will get better. Data transmission for devices will become faster, more reliable, and more scalable.
Why use Solana blockchain
The goal of scaling Helium to support more types of networks has forced a rethink of the current L1 Helium blockchain. After analyzing several blockchains, the main developers chose Solana.
Three main reasons for choosing Solana:
- Helium core developers no longer need to maintain their blockchain.
- Solana has an extensive ecosystem of developers, applications, and integration teams.
- HNT is initially compatible with other innovative projects in the Solana ecosystem, making it more useful for HNT token holders.
Network users will get better support in the form of hardware and software wallets, DeFi trading platforms, NFT, and compatibility with other applications in the Solana ecosystem.
Top applications in the Solana ecosystem:
Helium is also interested in integration with the Solana mobile device, the Saga phone.
Plans for 2023
Migration to Solana blockchain
Helium will fully migrate to Solana blockchain on April 18, 2023 (update on Helium Network migration to Solana, dated March 17, 2023)
- The migration will lead to the release of HNT on the Solana network.
- Once the migration is complete, a new version of the Helium Wallet app will be available. Users will be able to access the new app by updating their current wallet app. HNT owners can also use other wallets in the Solana ecosystem, such as Phantom or Solflare.
- The final phase of the upgrade will take place on an expected date of April 18. During this 24-hour transition period, all users will be migrated to the Solana blockchain.
- After the core developers confirm that blockchain production has stopped, a final snapshot of the Helium blockchain will be taken. Subsequently, the state of the blockchain will be migrated to the Solana blockchain, including all accounts/tokens.
Emergence of Helium Mobile Operator
The world’s first mobile operator, Helium Mobile, launches in partnership with T-Mobile. Helium Mobile will have affordable mobile plans that allow subscribers to browse, text and mine cryptocurrency. To provide nationwide coverage, Helium Mobile will use Helium’s default 5G network and use T-Mobile if Helium 5G coverage is insufficient.
Development plans:
- Helium Mobile beta launch in Q2 2023
- Opportunity for Helium Mobile users to earn MOBILE tokens
- launching both indoor (Q2) and outdoor (Q3) versions of the Helium Mobile Hotspot, which uses Wi-Fi to create network coverage for cell phones.
Helium usage options
More recently, several new companies have started using Helium in a variety of applications such as asset tracking, building monitoring, refrigeration, smart agriculture and drone delivery!
Communityfi offers IoT solutions for real estate, tracking, food and beverage and smart agriculture.
Orkney LORA is an IoT platform and service provider/system integrator.
Trackpac uses the Helium network to track things, cars, bikes, pets and more in real time.
Dronedek is a new concept working to securely receive and store parcels from drones. Their next-generation smart mailboxes accept all types of shipping and receiving, including food, parcels, medical and traditional mail.
Hivemapper is the world’s first crypto-enabled video recorder that mines a HONEY token and boosts the card as you drive. Hivemapper uses Helium for location verification to add another layer of validation to its mapping, prevent fraud, and increase customer trust in mapping.
WeatherXM is a community-based weather network that rewards weather station owners and provides accurate weather services to Web3 businesses. Helium allows WeatherXM sensors to be placed in areas that were not previously possible .
DIMO allows users to connect their vehicles to get information on vehicle condition and performance, get a better price on sales, save money on maintenance, and be rewarded with improved mobility for all. They are working on a plug-in device that can display the Helium network.
Conclusion
Helium blockchain is an advanced technology that has the potential to change the way we connect and communicate with devices. By creating a decentralized wireless network, Helium provides a solution to the current limitations of traditional wireless networks, which can be slow, expensive, and centralized.
One of the key features of the Helium network is the use of HNT tokens that encourage users to participate in the network.
With the introduction of 5G technology and the move to Solana blockchain, Helium is entering a new phase of network development.
As the Helium network expands, we can expect a wide range of possible applications, from animal tracking and environmental monitoring to the creation of smart homes and widespread use of IoT devices. The potential applications of this technology are almost unlimited, and we can expect this blockchain to continue to evolve.
