Helium Network: Decentralized Wireless Infrastructure Powered by Blockchain

TL;DR

Helium is a global, distributed network of hotspots that create public, long-range wireless coverage for LoRaWAN-enabled IoT devices and cellular devices. Individuals are incentivized to deploy hotspots, which mine and earn the network's native cryptocurrency, HNT, for providing and verifying wireless coverage. The Helium network recently migrated to the Solana blockchain for greater speed, scale and composability.

What is the Helium Network?

The Helium Network is a decentralized wireless infrastructure that provides connectivity for Internet of Things (IoT) devices. It consists of a global network of hotspots, which are a combination of a wireless gateway and a blockchain mining device. Hotspots provide public, long-range wireless coverage for LoRaWAN-enabled IoT devices and cellular devices and earn HNT cryptocurrency for doing so.

What makes Helium unique is that anyone can deploy a hotspot and become a network operator, earning HNT for providing legitimate wireless coverage. This incentive model has driven the rapid growth of the network, with over 900,000 hotspots deployed globally as of early 2023. Helium has become one of the largest public LoRaWAN networks in the world.

How Helium Works

At the core of the Helium network are three components:

1. Hotspots - Helium-compatible hotspots consist of a wireless gateway that provides LoRaWAN coverage, and a blockchain miner that verifies network transactions and coverage. Deploying a hotspot earns the owner HNT tokens for providing and validating wireless coverage.

2. Proof-of-Coverage (PoC) - Helium uses a novel work algorithm called Proof-of-Coverage to verify that hotspots are providing legitimate wireless coverage. Neighboring hotspots issue PoC challenges to each other, which requires an exchange of radio packets to be verified. This ensures hotspots are located where they claim and providing the expected wireless coverage. PoC is the primary mechanism through which HNT tokens are distributed to hotspot owners.

3. Blockchains - Originally, Helium operated its own blockchain to secure the network and provide an immutable record of PoC and transactions. In March 2023, Helium migrated to the Solana blockchain to leverage its high speed and low cost for greater scale. Solana will secure the state of the Helium network, while oracles and PoC will continue to run off-chain.

On the user side, Helium allows any LoRaWAN-compatible device to connect to the network and use Data Credits (DC) to send data to the internet. Fixed-price DCs are created by burning HNT, and are non-transferable. Devices pay DCs to any hotspot that forwards its data to the internet.

The combination of a permissionless, public network and a crypto-economic incentive model is what makes Helium such a powerful idea. It flips the traditional model of large wireless carriers maintaining proprietary networks to one where individuals are incentivized to build and maintain a public network.

Helium Tokens: HNT and IOT

There are two tokens that power the Helium ecosystem:

1. HNT - The native cryptocurrency of Helium, HNT, plays several key roles in the network. Hotspots earn HNT for providing wireless coverage and data transfer, which incentivizes the growth of the network. Users burn HNT to create Data Credits to pay for data transfer. HNT is also used for governance, allowing holders to vote on proposals that direct the development of the network.

2. IOT - Introduced in 2024 with the HIP-51 upgrade, IOT is an additional token specific to the LoRaWAN network. IOT is minted by LoRaWAN hotspots in a similar fashion to HNT and used to reward network operators for data transfers. The purpose of IOT is to separate the utility and economics of the LoRaWAN network from other networks like Helium 5G which use HNT.

HNT has a maximum supply of 223 million tokens and IOT has a maximum supply of 200 billion tokens. Both tokens are inflationary, with new tokens minted and distributed to hotspot owners and other network participants according to the Helium tokenomics model.

Helium Migration to Solana

A key milestone in Helium's history was the migration of its network from its own purpose-built blockchain to the Solana blockchain in March 2023. This move was motivated by the need for greater scalability, speed and composability as the network grew.

Solana is a high performance blockchain capable of 65,000 transactions per second with sub-second finality. This provides the speed and scale necessary to support Helium's growth targets and high volume of PoC and data transfer transactions. Solana's low transaction fees also preserve the cost-effectiveness of the network.

Migrating to Solana makes HNT and IOT SPL tokens (the Solana equivalent of ERC-20) allowing them to tap into Solana's vibrant DeFi ecosystem. This opens up a range of new use cases and utility for the tokens beyond the core network.

With the move to Solana, Helium's PoC and data transfer accounting is done via oracles, which are off-chain entities. Oracles package PoC and data transfer transactions into batches and submit them to Solana periodically. This allows the core wireless infrastructure to function independently of any blockchain bottlenecks.

Helium Use Cases

The Helium network can provide connectivity for a wide range of IoT use cases, particularly those that require low power, long range coverage. Some examples include:

• Asset tracking - Monitoring the location and condition of high value assets as they move through the supply chain
• Environmental monitoring - Sensors for measuring air and water quality, radiation, weather etc.
• Smart cities - Connected infrastructure like parking sensors, trash cans, lighting etc.
• Agriculture - Soil sensors, livestock tracking, irrigation control etc.
• Utilities - Smart meters for water, gas and electric services

Helium's decentralized model is particularly well-suited for IoT applications that require coverage in remote or hard-to-reach locations that traditional wireless carriers don't service. The permissionless nature of the network and low cost of data transfer also makes it attractive for startups and independent developers looking to prototype and launch new IoT applications quickly.

Some of the companies that have deployed IoT devices on Helium include Invoxia, Careband, Agulus and Smart Mimic.

Mining HNT with a Helium Hotspot

The primary way to participate in the Helium network and earn HNT rewards is by deploying a hotspot. To do so:

1. Purchase a Helium-compatible hotspot from an approved manufacturer like Bobcat, Rak, SenseCap or Kerlink.
2. Assemble your hotspot and place it in a location with good wireless coverage, like a window.
3. Power on your hotspot and follow the manufacturer's instructions to connect it to the internet via Ethernet or WiFi.
4. Download the Helium app and follow the instructions to register your hotspot and initialize it on the network. This requires a small fee in DC.
5. Once your hotspot is online and synced with the blockchain, it will start mining HNT whenever it completes PoC challenges and data transfers.

The amount of HNT you can earn depends on several factors, including the location and elevation of your hotspot, the density of other hotspots around you, and network usage. In general, well-placed hotspots in areas with good density can earn anywhere from 1-100 HNT per month.

Helium Network Ecosystem

In addition to hotspot owners and IoT device users, there is a growing ecosystem of developers, entrepreneurs and community members building on top of the Helium network. Some key players include:

• Helium Inc - The company behind the Helium blockchain and original hotspot miner. Helium Inc is responsible for developing and maintaining the core network software and partnering with hardware manufacturers.

• Decentralized Wireless Alliance (DeWi) - A 100+ member alliance of hardware and software companies, startups and investors committed to building and promoting decentralized wireless networks. Members include Helium, Dish Network, Kincaid Networks, Nesten and others.

• Helium Community DAO - A decentralized autonomous organization (DAO) governed by HNT holders that is responsible for allocating ecosystem funds and community grants. The community submits and votes on proposals to direct the development of the network.

• Helium Foundation - A non-profit organization dedicated to supporting and growing the Helium ecosystem through education, research and community development. The Foundation hosts regular community calls, events and hackathons.

There is also a growing number of analytics and visualization tools for the Helium network, such as Helium Explorer, Sitebot, and Hotspotty. These allow users to track coverage, hotspot performance, token earnings and more.

Helium Network Roadmap and Vision

Helium's mission is to become the world's largest decentralized wireless network for IoT devices. To do so, it is focusing on growing network coverage and adoption through several key initiatives:

• Helium 5G - In 2023, Helium launched a 5G version of its network to provide cellular coverage for 5G-compatible devices. Helium 5G uses the same model of individuals deploying connectivity nodes, called FreedomFi gateways, to provide coverage and earn HNT rewards. As of early 2023, there are over 8,000 5G nodes deployed across the US.

• Helium Roaming - To expand coverage and access to the network, Helium has partnered with several major wireless carriers like Dish Network and Actility to enable roaming between networks. This allows Helium-compatible devices to connect to partner networks when outside of Helium coverage areas and vice versa.

• International Expansion - Helium hotspots are now deployed in over 170 countries, but coverage is still concentrated in North America and Europe. The company is focused on expanding to more regions through partnerships with local organizations and manufacturers.

• B2B Growth - While the network was built by individuals, Helium is increasingly focused on onboarding enterprise and commercial IoT fleets to drive usage and demand for coverage. It has launched the Helium for Business platform to make it easier for companies to deploy and manage devices on the network at scale.

Looking ahead, Helium's vision is to become the de facto connectivity layer for the IoT and unlock new possibilities for connected devices and applications. With its novel incentive model and growing ecosystem, it is well-positioned to disrupt traditional wireless carriers and accelerate IoT adoption globally.

Summary

The Helium Network is a decentralized wireless network that provides LoRaWAN and 5G connectivity for IoT devices. It incentivizes individuals and businesses to deploy hotspots that mine and earn HNT cryptocurrency for providing wireless coverage. With over 900,000 hotspots deployed globally, Helium has become one of the largest LoRaWAN networks in the world.

Helium's novel Proof-of-Coverage consensus mechanism verifies that hotspots are located where they claim and providing legitimate wireless coverage. In March 2023, Helium migrated from its own blockchain to Solana for greater speed, scale and composability.

Helium has two tokens - HNT and IOT - that power the network and incentivize coverage and usage. HNT is burned to create Data Credits, which devices use to pay for connectivity. Hotspots earn HNT and IOT for providing coverage and data transfer.

There is a growing ecosystem of developers, entrepreneurs and enterprises building IoT applications and services on top of the Helium network. Helium's key focus areas include expanding 5G coverage, enabling roaming with partner networks, international expansion and enterprise adoption.

With its disruptive model and active community, Helium is well-positioned to become the leading decentralized wireless network for the IoT.