What is Helium (HNT)

Helium (HNT) is a decentralised wireless network that incentivises individuals to deploy and maintain wireless coverage infrastructure using blockchain-based token rewards. Often called "The People's Network," Helium uses a novel consensus mechanism called Proof of Coverage and the HNT token to create a community-owned alternative to traditional telecom infrastructure.

THE CORE CONCEPT: MINING WITH RADIO WAVES

Traditional Bitcoin mining uses computational power to secure a blockchain. Helium mining uses radio signal transmission to provide wireless coverage. Helium hotspot operators deploy small wireless gateway devices (similar to a WiFi router) that: provide LoRaWAN coverage for IoT devices in their area, verify coverage by interacting with other nearby hotspots, and earn HNT tokens as rewards for providing and validating coverage. This transforms ordinary homes and businesses into wireless infrastructure nodes.

PROOF OF COVERAGE (POC)

Proof of Coverage is Helium's unique consensus mechanism that verifies hotspots are genuinely providing wireless coverage in their claimed location. Random "challenges" are issued to hotspots. The challenged hotspot (Challengee) transmits a signal, and neighbouring hotspots (Witnesses) that receive and validate the signal earn a portion of HNT rewards. This cryptographic proof ensures operators cannot fake their location or coverage area.

THE ORIGINAL LORAWAN NETWORK

Helium originally focused on LoRaWAN, a long-range, low-power wireless protocol ideal for IoT devices (sensors, trackers, environmental monitors). The network grew to over 1 million hotspots globally by 2022, making it the world's largest LoRaWAN network built without a single telecom company.

HELIUM MOBILE: 5G EXPANSION

Helium expanded into 5G mobile coverage with the MOBILE token. Phone carriers, small cell operators, and individuals deploy 5G small cells to earn MOBILE tokens for providing mobile network coverage. Helium Mobile launched as an MVNO (Mobile Virtual Network Operator) offering unlimited data plans in the US.

THE HNT TOKEN ECONOMY

HNT has a maximum supply of 223 million. The token halves every two years (similar to Bitcoin's halving). HNT is used to pay for network access (burned when converted to Data Credits) and earned by hotspot operators.

Terms in addition to the Helium (HNT)

Blockchain

A blockchain is a subset of a distributed database. The Bitcoin inventors originally prototyped the system in 2008. This modern database is made up of separate blocks that are connected together in a chronological chain. Blockchains may be used to store a wide range of data types. It has mostly been utilized as a public ledger for bitcoin transactions to date. A peer-to-peer network comprised of independent nodes uses a consensus process to ensure the blockchain's security and legitimacy. Each node in the network keeps a public and immutable copy of the data.

2 Factor Authentication (2FA)

2 Factor Authentication is a security measure with two layers. It is used by the majority of cryptocurrency exchanges. To log in, you must provide not only a password, but also a code obtained, for example, from the Google authenticator.

Airdrop

An airdrop is a method of distributing coins. End users can typically obtain coins for free or in exchange for doing a small task, such as subscribing to a newsletter, sending a tweet, or inviting others via a personal affiliate link. Cryptocurrency airdrops — the act of depositing cryptocurrency into public crypto wallets — are utilized as a marketing, liquidity creation, and network bootstrapping technique for many different types of blockchain initiatives.

Altcoin

Altcoin - "alternative coin" - is any kind of digital currency other than Bitcoin. Since the launch of Bitcoin, the world's first digital currency, many altcoins (as well as supporting blockchains) have been created. Altcoin digital currencies share many similarities to Bitcoin, but consistently and have significant differences. There are about 20,000 altcoins, and this number is expected to grow significantly in the coming years. Altcoins often develop Bitcoin features. Ethereum, currently the most widely used blockchain, supports digital contracts and separate applications where Bitcoin does not. Altcoins are also often created to cater to the needs of different users. The Litecoin blockchain, for example, can process payments quarterly for the duration of Bitcoin.

Cold Storage

Cold storage is the way to store cryptocurrency offline. The word refers to the use of offline wallets that are not connected to the internet. Cold storage is the most secure way to keep cryptocurrencies since an offline currency becomes less likely to be hacked and stolen. Paper wallets, printed renditions of private keys, and offline hardware and software wallets are all examples of cold storage.