The Bright Future of Helium

By Aleksandra Wilson
3 min read November 25, 2021

Helium Explained

Helium is a network for IoT (Internet of Things) devices powered by decentralized blockchain technology. It was officially launched back in July 2019. The network enables devices with low-powered wireless to send and receive data across its nodes and network in general. The nodes, also known as hotspots, are a mix of a blockchain mining device and a wireless gateway. The network is also known for rewarding the users that operate the nodes with HNT, Helium’s token.

About the Founders

The three founders who started the company back in 2013 are Shawn Fanning, Amir Haleem, and Sean Carey. Haleem’s active background is in eSports as well as the development of games. On the other hand, Fanning, is famous for the story of Napster, a music sharing service Napster was one of the first peer-to-peer primary internet services at the end of the ’90s. Meanwhile, Sean Carey had a variety of roles before Helium. Carey worked in the firm “Where”, which specialized in advertising optimization, that Paypal later acquired.

Now, the team in charge of Helium, formed by what the company calls experienced members, is very optimistic. They have specialized people in hardware and radio, manufacturing, distribution systems, and blockchain tech.

What Is Special About Helium

The main goal of Helium is to increase the capabilities in the communication of wireless IoT devices exponentially. Back in 2013, the whole infrastructure related to the Internet of Things was still at a very early stage. Developers, determined to expand their offerings by adding decentralization. That is the main reason why official literature refers to it as “The People’s Network”. 

The target audience is the users interested in the IoT as well as owners of devices. Considering that there are financial incentives, the expected outcome of this expansion is on a big scale. 

What the users of the network are purchasing or building are Hotspots, a mix of a miner and a wireless gateway. Each of those hotspots supplies coverage within a specific range. At the same time, the same hotspot mines HNT, Helium’s token.

The whole network works on proof-of-coverage, which is a new algorithm of consensus. The algorithm is based on a protocol that enables nodes to reach consensus when the quality of the connection is highly variable. 

Circulation

When Helium launched the token, the supply was zero. Back in October 2020, there were 48,712,218 Helium tokens in circulation. Helium explained that the owners of the nodes would receive tokens for helping build the network. Later on, data transfer will be more advantageous, although the token distribution will last for about 20 years.

Helium’s Secure Network

Helium uses a mechanism of consensus called PoC (proof-of-coverage) for which users get rewards. Main goal of PoC is specifically node communication. 

From October 2020, Helium token is available in big exchanges.

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