Mining serves the purpose of verifying the legitimacy of transactions on a blockchain network like Bitcoin. Typically, miners use specialized hardware such as CPUs or ASICs to mine cryptocurrencies. However, mining on smartphones is generally inefficient and impractical. But what if there was a decentralized wireless network that allowed mining without the need for expensive infrastructure? Well, that’s where the Helium Network comes in.
The Helium Network is a distributed network of hotspots that provides long-range wireless service for Internet of Things (IoT) devices. These devices communicate with each other using the LoRaWAN protocol, which offers a wider range of connectivity than traditional WiFi. The Helium blockchain was created to support the development of decentralized wireless networks, using HNT (Helium) tokens as its primary cryptocurrency. In April 2023, the project migrated to the Solana blockchain, which enhanced its utility and interoperability.
The Helium Network operates through hotspots, which are portable radio routers that offer superior connectivity compared to WiFi. These hotspots are used by miners to build “The People’s Network,” a wireless network that provides coverage for IoT devices in exchange for HNT tokens. Proof-of-coverage (PoC) is the mechanism used by the Helium blockchain to ensure that hotspots accurately describe their location and the wireless coverage they provide. Hotspots are rewarded for acting as witnesses for other peers’ performance, completing PoC challenges, and sharing device data.
The Helium Network offers several advantages over traditional internet service providers. It provides a high level of security and complete encryption, making it a more secure option. It also offers affordable universal internet access, leveraging the shared infrastructure of hotspots to provide more affordable connectivity solutions, especially for IoT devices. This makes it particularly beneficial for rural or underserved areas. Users only pay for the data they use, eliminating additional charges imposed by cellular providers.
Helium mining works differently from traditional mining. Instead of using CPUs or ASICs, it utilizes radiowave technology and blockchain technology to create a more reliable wireless network. Hotspots use LoRaWAN transmitters to provide long-range wireless coverage and earn HNT tokens in return. The amount of HNT earned depends on factors such as the amount of data transferred and participation in PoC challenges.
Setting up a Helium miner involves downloading the Helium app, setting up an account, and adding a compatible hotspot miner. The miner needs to be plugged in and paired with the app via Bluetooth or WiFi. The location of the antenna plays a crucial role in optimizing the miner setup to maximize signal reach. Updating the firmware and considering hotspot density in the area can further enhance the miner’s performance.
The future of the Helium network looks promising with its migration to the Solana blockchain. The integration with Solana ecosystem applications and the introduction of 5G will enhance the network’s support and capabilities. The Helium network’s IoT and 5G segments are expected to grow, benefiting from the increased reliability and scalability offered by the new architecture. Innovations like the Solana Mobile Stack and Saga Phone will further enrich the mobile experience within the ecosystem.