What is Helium (HNT)? Learn crypto

Understanding Helium (HNT)

Helium functions as a blockchain-powered network facilitating IoT device connectivity. Utilizing Helium technology, devices communicate and transmit data via network nodes called Hotspots, which rely on LoRaWAN technology. With over 25,000 Hotspots, Helium is a major LoRaWAN network. These Hotspots, acting as nodes, merge LoRaWAN capabilities with blockchain-based mining devices. Helium, also known as "The People's Network," aims to revolutionize IoT by addressing privacy concerns through decentralization and blockchain technology, ensuring efficient and secure connectivity for the future.

Helium's history

Founded in 2013, shortly after Bitcoin's emergence, Helium pioneered the first global peer-to-peer wireless network, enabling connectivity across various devices for the Internet of Things on a global scale. Co-founded by Amir Haleem, Sean Carey, and Shawn Fanning, the project secured over $53 million in funding across four rounds from 2015 to 2019. The network officially launched in 2019, aiming to address prevalent IoT sector challenges such as privacy.

Understanding the Mechanism of Helium

Helium's goal is to establish a dependable, decentralized global network for IoT devices, leveraging the community of HNT holders. The network comprises nodes, called Hotspots, managed by node operators who are HNT holders. Users are incentivized for hosting Hotspots and overseeing nodes, driving participation in the network.

While WiFi supports IoT devices, accommodating diverse devices raises privacy concerns. Helium addresses this challenge through a decentralized architecture and a consensus mechanism, providing IoT connectivity 200 times broader than WiFi. The network operates on Proof of Coverage consensus, rewarding HNT holders and node operators. Users purchase mining devices from the Helium website to set up Hotspots, generating radio frequencies and validating Hotspot locations through Proof of Coverage.

Participants fulfill three critical roles in the network: Challenger, Transmitter, and Witness, with rewards varying based on their role in the Hotspot network.

Utilizing Helium

Helium facilitates seamless connectivity for IoT devices by employing low-power solutions that are efficient and effective. Additionally, Helium enables users to mine HNT and stake their holdings, allowing for profit generation through network participation.

To engage with Helium as a Hotspot node provider, users can acquire specialized mining devices from the official Helium website and earn rewards in HNT based on their involvement. These rewards can be traded in the cryptocurrency market or used to obtain non-exchangeable Data Credits.

Through decentralization, Helium establishes a distinct infrastructure, known as "The People's Network," fostering a new wireless economy.

Selecting a Helium wallet

The Helium development team suggests the Helium App as a primary digital wallet for HNT, compatible with Android and iOS, offering pairing and Hotspot setup features. Another option is the Command Line Interface Wallet, providing a secure environment for HNT storage, although it's more suitable for tech-savvy users, with the Helium App recommended for beginners.

There are various other storage options for HNT, with the choice depending on your preferences and requirements. Hardware wallets like Ledger or Trezor offer the highest security with offline storage and backup, but they may require more technical expertise and are pricier. Software wallets, available as smartphone or desktop apps, offer a free and user-friendly option, with custodial and non-custodial variants. Online wallets, accessible via web browsers, provide convenience but are considered less secure, suitable for smaller amounts or less experienced users.

Kriptomat presents a secure storage solution for HNT, enabling storage and trading with enterprise-grade security and user-friendly features. Buying, selling, or trading HNT on Kriptomat is swift and seamless, ensuring hassle-free management of your cryptocurrency assets.

Factors driving Helium's value

Helium's value stems from its utility, technical capabilities, project relevance, and technology. While its intrinsic value primarily reflects its utility and technology, the market value of HNT may not always align due to cryptocurrency market volatility.

Market value fluctuates based on numerous factors, leading to potential volatility and unpredictable trend reversals. As a result, the project's real-world value may differ from the market price of HNT.

Helium's unique attributes

Helium stands out among blockchain projects addressing the Internet of Things, alongside IOTA (MIOTA), which utilizes "blockless" technology and the Tangle network. What distinguishes Helium is its Proof of Coverage (PoC) mechanism, uniquely designed for the network. PoC, based on the HoneyBadger Byzantine Fault Tolerance protocol, enables consensus among network nodes despite varying connection rates. Additionally, Helium utilizes Data Credits, a token distinct from its native token HNT, for paying transaction fees, enhancing its utility.

Total supply of Helium (HNT) coins

Helium (HNT) currently has 164,551,993 coins in circulation out of a maximum supply of 223,000,000 HNT. With a capped maximum supply and no pre-mined tokens, new HNT is mined to reward Hotspots, balanced by burned HNT to generate Data Credits in a Burn-and-Mint Equilibrium token model. The inflation rate decreases over time, ensuring the total supply never exceeds 223 million.

Multiplying the number of HNT coins by its market price yields the market cap, which determines HNT's rank among cryptocurrencies, as well as its market share and dominance.