Helium (HNT) is a decentralized, blockchain-powered network for Internet of Things (IoT) devices launched in July 2019. Helium allows wireless devices to communicate with each other and send data across its network of nodes. These nodes are called Hotspots, they are a combination between a wireless gateway and a blockchain mining device. Users operate nodes mine and earn HNT as a reward.
What is the Internet of Things (IOT)?
How does it work? And why do we need it?
It’s estimated that in the next 5 years, there will need to be 75 billion devices or things that need to connect to the internet.
The need for this is huge.
Here’s a quick definition to more clearly understand the concept…
Internet of Things (IOT): a system of devices, machines, objects, tools, or people that have unique identifiers (UIDs) and possess the ability to transfer data over a network without requiring human intervention. Essentially, things that can connect to the internet and other things by themselves.
Let’s look at some use cases for the importance of tracking items and needing them to be connected to the internet. If you’re a weapons manufacturing company specializing in guns and explosives, you need to diligently track every detail of your product to make sure it doesn’t get into the wrong hands. If an item goes missing it’s important to know where that happened so precautions can be made. What if the gun was stolen by a crazy delivery driver?
Another example is a luxury watch company like Rolex trying to track the authenticity of its products. If someone on the street is selling “Rolex watches” for half their retail price and proclaiming it to be real, how does a company like Rolex step in to fix this problem? Well, through supply chains of course.
Doing this traditionally can be quite difficult. It’s either too expensive because of the cellular data plans on the market, or to power-consuming for devices.
Introducing Helium, the decentralized wireless provider
Helium is a platform that aims to fix these problems by making it easy for devices to connect to the internet.
Helium can be seen to have 2 main properties. It is designed on blockchain technology, so every item, movement of an item, or action is recorded in this ledger and shared transparently. The second is that it’s long-range wireless connectivity allows devices in hard to reach places to connect to the internet and be a part of this network
What makes Helium super cool is that the network is actually built and owned by you.
Essentially, Helium is rewarding participants for setting up a wireless network that expands the connectivity of devices. The more wireless networks spread across the world, the more far-reaching. More devices, across greater distances, can connect to the network which expands the IoT. The larger the IoT, the more use it has in the real world.
To connect devices to the internet right now, you would have to use a cellular network or purchase a wireless network from a centralized provider. The issue here is security, dependability, and affordability. How expensive is your phone contract? Imagine how expensive it must be for a business to connect all of its devices to the internet. How about the security? Do you really want a single entity to decide whether you have internet or not? Lastly, dependability. Just how often does your WiFi or 5G drop? (way too often for me!).
Participating in the network
Participation is easy. All it takes is setting up a Helium hotspot- using open-source software and purchasing the hardware from your local computer store. Boom, you’ve just expanded the size of the network and are now eligible to earn rewards for doing so.
Helium hotspots mine the HNT, the native currency of the Helium network. So simply by running one, you are earning a passive income of HNT. The question often asked is whether the cost of running a hotspot is worth it in comparison to the HNT earned as a reward.
The sharing economy
The sharing economy is one that has boomed in the past decade. From Uber to Airbnb in the traditional world, and Filecoin in our crypto world. The success of these projects and the participants are dependent on supply and demand.
If no one needed a taxi, Uber wouldn’t succeed; if no needed place to stay, Airbnb would be useless; and, if people weren’t looking for decentralized file storage, Filecoin would be no more. In Helium’s case, economics is flipped on its head. Instead of demand fuelling supply, supply fuels demand. Suppliers are incentivized to expand the network to be rewarded, demanders are rewarded with cheaper costs and a more secure network.
The people’s network
Simply put, the Helium network is the people’s network. It offers a more affordable, more decentralized option for devices needed to be connected to the internet. As we have covered, the need for items to be connected is rising at a rapid pace. Investing in the Helium network is essentially investing in the IoT.
