The Helium Network Flies High Through Cryptocurrency
The largest long range WAN is built from hundreds of thousands of distributed hotspots that provide wireless coverage and support communication for IoT devices. Based on blockchain technology, hotspot owners earn cryptocurrency depending on how their devices are used.
Image credit: Helium
In an era of sensors and connected devices, the need for broadband Internet access is on the rise. The Internet of Things enables a slew of smart city initiatives, and the collected data can travel on a peer-to-peer, low-power network launched by Helium and powered by cryptocurrency.
The Helium Network is a decentralized, long range WAN (LoRaWAN) that relies on the public to deploy hotspots, or gateways, to support communication. Helium initially tried to build the network itself but lacked enough participants. The company was on the brink of bankruptcy when it pivoted to a cryptocurrency model. The promise of earning Helium Network Tokens ($HNT) was enough to motivate citizens to deploy the hotspots, and the Helium Network ballooned.
Mine Your Own Business
The network is designed to support the small but frequent transmissions from Internet of Things devices, rather than phone or computer communications, though 5G rollouts could change that. Helium calls it “The People’s Network” because anyone who installs a “mining” device, or hotspot, is building out the network, which extends the coverage. The miners connect to other devices, and hotspot owners earn cryptocurrency based on usage.
To date, more than 565,000 hotspots are on the network, which is live in more than 34,000 cities worldwide. By the end of 2022, Helium predicts the network will comprise more than 1 million hotspots. The website includes the Helium Explorer, a map of its coverage, complete with the number of hotspots, data credits used, and the current market value of HNT. Users can drill down to see how many hotspots are in their neighborhood to help determine where best to deploy a device—and earn $HNT.
The hotspots send data over long distances—about 200 times farther than standard Wi-Fi devices—using radio frequencies. The devices are low energy, in part because Helium’s blockchain is secured using a proof of coverage algorithm, unlike the proof of work algorithms required by Bitcoin and other cryptocurrencies.
Helium For Good
The City of San Jose is on a mission to level the digital playing field for its diverse citizenry. “Fifty percent of our residents suffer from the digital divide [because of] cost. How can we reduce that financial barrier to provide broadband for 1,300 low-income households?” says Jordan Sun, senior advisor for the city of San Jose.
The answer is through cryptocurrency. The city partnered with Helium and the California Emerging Technology Fund to offer reduced-rate broadband Internet access to qualifying families. The mayor’s office deployed 20 hotspots, with the double goal of expanding the city’s Helium Network and generating $HNT. The cryptocurrency is converted into prepaid cash cards and distributed to selected low-income households. San Jose is counting on this approach to subsidize Internet expenses for 1,300 families for one year.
Equitable internet access is a noble endeavor, but it’s not the only use case. The Helium Network supports communication from a plethora of IoT devices, including smart streetlights, medical devices, home delivery systems, smart bikes, electronic pet collars, and GPS trackers. Micro transportation company Lime uses the Helium Network to track the location of its smart scooters, bikes, and mopeds. The locations are shared on Lime’s mobile app, so riders can find the nearest mode of transport.
Image credit: BaySide Media
The Helium Network supports long range communications with IoT devices that can be miles away or even inside buildings. That makes it attractive to energy companies with miles of pipeline systems. All gateways are independently owned, so no one entity can require permission to use the network, which ensures Helium will be an open, public network.