What Is Helium (HNT)?

September 19, 2024
7 min read

Imagine a world where instead of relying solely on large cellular towers for internet connectivity, individuals could contribute to a decentralized wireless network simply by setting up a small device at home. This is exactly what Helium (HNT) aims to achieve, creating a revolutionary decentralized wireless infrastructure that is owned and operated by everyday people. Helium, also known as “The People’s Network,” has introduced a new way for users to mine cryptocurrency while providing valuable services to the network.

Helium represents a new chapter in the world of blockchain technology, where digital currencies are not just about trading or investing but also about providing real-world solutions. Whether you are new to the world of Helium or a crypto enthusiast, understanding the fundamentals of this decentralized network can open the door to endless possibilities in how we connect to the internet. Now, follow Argoox, and let’s dive into what Helium (HNT) is and how it works.

What is The Definition of Helium (HNT)?

Helium (HNT) is a decentralized blockchain-powered network designed to enable wireless devices to communicate and share data over long distances. The network operates using small hardware devices called Hotspots, which provide wireless network coverage for Internet of Things (IoT) devices like sensors, trackers, and other low-power gadgets. In exchange for contributing to the network, Hotspot operators earn Helium’s native cryptocurrency, HNT tokens.

Helium’s primary goal is to build a decentralized network where individuals, rather than corporations, own and maintain the infrastructure. Through this novel approach, Helium allows devices to send data over long distances using minimal energy, and users are incentivized through token rewards.

Read More: What is Helium (HNT) Trading Bot?

What Does Helium HNT Do?

The Helium network enables IoT devices to connect to the internet in areas where traditional Wi-Fi or cellular coverage might be limited. Devices such as weather stations, smart sensors, and even pet trackers can communicate with each other via the Helium network, sharing data efficiently and inexpensively.

Helium’s unique technology, called LongFi, combines blockchain with LoRaWAN (Low Power, Wide Area Network) to provide long-range connectivity with low energy consumption. By using Helium Hotspots, users contribute to the network infrastructure, and in return, they receive HNT tokens as rewards for providing coverage and transferring data for IoT devices.

Is Helium Crypto Safe?

When it comes to security, Helium has implemented powerfull measures to ensure the safety of its network and users. The decentralized nature of the network reduces the risks associated with single points of failure that are common in centralized systems. Moreover, the blockchain technology that powers Helium ensures that data transfers and transactions are secure, transparent, and immutable.

However, as with all blockchain projects, there are potential risks, such as volatility in token prices and regulatory uncertainty. Helium has taken steps to protect its network from security breaches, but users should still exercise caution, especially when dealing with mining equipment or storing tokens.

Who Are The Founders of Helium?

Helium was founded by Amir Haleem, Shawn Fanning, and Sean Carey in 2013. Amir Haleem, the CEO of Helium, brings expertise in gaming and wireless networking, while Shawn Fanning is best known for creating the iconic peer-to-peer file-sharing service Napster. Sean Carey has a strong background in software development and engineering. Together, they formed Helium with a vision of revolutionizing wireless communication by leveraging blockchain technology.

What Are HNT Tokens Used For?

HNT tokens serve as the primary currency in the Helium ecosystem. These tokens are earned by Hotspot operators who contribute to the network by offering coverage and transmitting data. The HNT tokens have several use cases within the network, including:

Staking: HNT holders are able to stake their tokens to involve in the governance of the network.
Payment for Services: IoT device owners use HNT to pay for data transfer services across the Helium network.
Burn-and-Mint: The network employs a “burn-and-mint” model, where tokens are burned to create Data Credits used for transferring data.

What Makes Helium Unique?

Helium stands out for its innovative approach to building a decentralized wireless network. Unlike traditional networks, which rely on large corporations to manage and operate infrastructure, Helium allows individuals to contribute by setting up Hotspots. This results in a cost-effective and scalable solution for providing internet coverage to IoT devices.

Another unique aspect is the use of the “Proof of Coverage” consensus mechanism, where Hotspot operators are rewarded for verifying their location and contributing to the network’s coverage. This ensures that the network will stay secure and decentralized.

How Many Helium (HNT) Coins Are There in Circulation?

As of now, Helium has a total supply cap of 223 million HNT tokens, with approximately 143 million HNT currently in circulation. The token distribution is set to undergo a halving every two years, which means the rewards earned by Hotspot operators will decrease over time, driving scarcity and potentially increasing the value of the tokens.

How Is the Helium Network Secured?

Helium secures its network through a combination of blockchain technology and its innovative Proof of Coverage system. This consensus algorithm allows Hotspots to verify that they are providing legitimate coverage by validating their location and network performance. This decentralized system ensures that the network remains reliable and tamper-resistant.

Moreover, the use of public-key cryptography in all transactions ensures that the network is secure from malicious attacks. Helium’s decentralized structure reduces vulnerabilities that centralized networks often face.

Where Can You Buy Helium (HNT)?

Helium (HNT) tokens are available on several major cryptocurrency exchanges, including Binance, Crypto.com, and FTX. To buy HNT, users need to sign up to make an account on an exchange, deposit funds, and then trade them for HNT tokens. It’s important to check the token’s availability on your preferred exchange and ensure it supports your country of residence.

How Much Does a Helium Miner Make Per Day?

The daily earnings of a Helium miner, also known as a Hotspot, can vary depending on several factors, including the number of Hotspots in the area, the amount of data transferred, and the performance of the Hotspot. On average, a Helium miner can earn anywhere from a few dollars to over $100 per day, depending on its location and how well it contributes to the network’s coverage. Hotspots in highly congested areas with many miners tend to earn less, while those in underserved regions may earn more.

Conclusion

Helium is a groundbreaking project that bridges the gap between blockchain technology and real-world wireless connectivity. By enabling individuals to contribute to the network and earn rewards through HNT tokens, Helium has created a decentralized and cost-effective way to power the IoT revolution. As the network grows, so do the opportunities for innovation and widespread adoption.

If you’re considering diving into the world of Helium or setting up a Hotspot, the potential rewards can be substantial. Whether it’s for the technology or the financial incentives, Helium is proving that decentralized networks can reshape the way we think about connectivity. To learn more about how decentralized technology can benefit your trading strategies, visit Argoox, the global leader in AI-powered trading bots for financial and cryptocurrency markets.