Helium

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Discover Helium's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Helium?

Helium (HNT) is a blockchain-based network designed for IoT devices, utilizing nodes as Hotspots to connect wireless devices. It uses a unique consensus mechanism called Proof of Coverage, which relies on network participants to ensure stability through mining. The native token, HNT, is used to pay for network operations and can be earned by building and maintaining Hotspots.

How is Helium used?

Helium (HNT) is the native cryptocurrency of the Helium Network, a decentralized wireless infrastructure designed for the Internet of Things (IoT). Here are the key ways HNT is used:

  1. Data Transfer Payment: HNT is used to pay for data transfer across the Helium Network. Devices send and receive data packets using HNT, which is burned with each data transfer to control the overall supply and incentivize efficient resource allocation.

  2. Network Growth Incentives: HNT acts as a reward system for users who operate Helium Hotspots. These Hotspots extend the network's reach, and their owners are rewarded with HNT tokens for providing wireless coverage. This incentivizes participation and fuels the network's continuous expansion.

  3. Future Governance: HNT is envisioned to play a role in the future governance of the Helium Network. Token holders may eventually have a say in network upgrades and key decision-making processes.

  1. Data Credits Creation: HNT is burned to create Data Credits, which are non-transferrable tokens used to pay for network operations and data transfer via Helium LongFi.

  2. Mining and Staking: HNT can be mined by setting up Helium Hotspots, which provide long-range wireless coverage. Users can also stake HNT to participate in the network and earn rewards.

Overall, HNT is a crucial component of the Helium Network, facilitating data transfer, incentivizing network growth, and enabling decentralized governance and mining.

How do I store Helium?

To store Helium (HNT) tokens, you have several wallet options that offer varying features and security levels. Here are some of the top wallets to consider:

  1. Helium Wallet App: This is the native wallet for HNT, allowing direct HNT-to-crypto swaps, QR-code scanning, and transaction history checks. It supports multiple accounts and has a user-friendly interface.

  2. Ledger (Nano S or X): Ledger wallets offer offline storage of private keys, ensuring high security. They support multiple blockchains, have a user-friendly interface, and are compatible with various operating systems.

  3. Uphold Wallet: Uphold supports various blockchains, allows NFT storage, and provides access to Uphold services. It also supports buying and selling cryptocurrencies, but is not non-custodial and has location restrictions.

  1. Phantom Wallet: Phantom offers competitive token swapping fees, multi-chain support, and NFT storage. It integrates with Ledger and supports transaction previews.

  2. Solflare Wallet: Solflare supports swaps and movement into the Solana ecosystem, with integrated support from Keystone and Ledger. It also has anti-phishing security standards and is compatible with mobile and browser platforms.

  3. Helium Mobile Wallet: This wallet is part of the Helium Mobile subscription and supports tokens on the Solana blockchain, including SOL, HNT, and MOBILE. It allows for token transfers and claims rewards.

When choosing a wallet, consider factors such as security, ease of use, and compatibility with your device and operating system. Ensure the wallet has a good reputation in the crypto community and provides the features you need for managing your HNT tokens.

How to buy Helium?

To buy Helium (HNT) tokens, follow these steps:

  1. Choose a Cryptocurrency Exchange:

    • Kriptomat: Create and verify your account, add funds using a bank deposit or credit card, and then select Helium from the list of cryptocurrencies to purchase.
    • Uphold: Create a free account, verify your identity, and connect your debit/credit card or bank account. Then, select Helium and confirm your purchase.
    • KuCoin: Create a free account, secure and verify your account, add a payment method, and then select Helium to buy.
    • Coinbase: Create an account, add a payment method, search for Helium, and then enter the amount you want to buy.
  2. Verify Your Account:

    • Verify your email, phone number, and identity to unlock the full potential of the chosen exchange platform.
  3. Add Funds:

  • Use a bank deposit, credit card, or debit card to add funds to your account. This will enable you to purchase Helium tokens.
  1. Purchase Helium:

    • Select Helium from the list of available cryptocurrencies, enter the amount you want to buy, and confirm your purchase.
  2. Store or Trade:

    • Once you have purchased Helium, you can store it in your exchange wallet or trade it for other assets.
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History of Helium

Helium (HNT) was founded in 2013 by Amir Haleem, Shawn Fanning, and Sean Carey. Initially, the company focused on deploying LoRa gateway hotspots throughout areas by agreements with building owners, typically paid in conventional currency. However, by 2017, the company's funds were running low, and they shifted their strategy to offer individuals payment in cryptocurrency to operate individually owned nodes in their homes or offices.

These individually owned nodes, known as Hotspots, were purchased at costs of up to $500 each, and the payments to owners varied based on data usage but could be as low as $0.10 a month. Hotspot operators also gained a vote in the operation of the network.

In 2021, Helium partnered with Dish Network to deploy thousands of Helium hotspots across Dish's nationwide cellular network, further expanding Helium's reach. The following year, in March 2022, Helium Inc. rebranded to Nova Labs Inc. and raised $200 million in a funding round led by Tiger Global Management and Andreessen Horowitz.

Additionally, in August 2022, Helium integrated with the 5G network, utilizing a decentralized approach by building a cellular network powered by Helium Hotspots equipped with 5G radios. These hotspots, deployed by individuals or businesses, provided local coverage and relayed data within the network.

Despite some controversies, such as falsely claiming Lime and Salesforce as major customers, Helium continues to grow and evolve, now with over 996,000 Hotspots and a circulating HNT supply of 166 million.

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How Helium works

Helium (HNT) is a blockchain-based network designed to connect and manage Internet of Things (IoT) devices. It operates on a decentralized architecture, ensuring that no single entity controls the network. Here's how it works:

Key Components
  1. Hotspots: These are specialized devices that provide public, long-range wireless coverage for IoT devices. They are the nodes that make up the Helium network. Hotspots use LoRaWAN, a low-power wireless protocol, to communicate with IoT devices and transmit data to the internet.

  2. Data Credits: These are non-transferrable tokens used to pay for network operations and data transmission. Data Credits are created by burning HNT tokens, ensuring a balance between the creation of new HNT through mining and the removal of HNT from circulation.

Earning HNT Tokens
  1. Helium Mining: Users can earn HNT tokens by setting up and maintaining Hotspots. The more data a Hotspot transfers, the larger the reward. Additionally, Hotspots participate in Proof-of-Coverage (PoC) challenges to prove their coverage and connectivity, earning more HNT rewards.

  2. Validators: Users can also contribute to the network by running Helium Validators, which secure the blockchain and receive HNT rewards. Validators must stake 10,000 HNT tokens and earn 6% of the overall HNT rewards for their work.

  3. Applications and Micropayments: Users can run applications on the Helium network and receive micropayments in HNT tokens for their services.

  1. Community Initiatives: Users can participate in community-driven initiatives, such as challenges, contests, or partnerships, which may offer opportunities to earn HNT tokens.
Network Functionality
  1. Decentralized Architecture: The network is decentralized, ensuring that no single entity controls it. This approach enhances network security and resilience, making it less susceptible to cyber attacks.

  2. Low-Power Requirements: Helium mining is relatively energy-efficient compared to traditional mining processes, making it an environmentally friendly option.

  3. Community Engagement: The Helium network fosters a collaborative ecosystem where users can engage with each other, share experiences, and stay updated with the latest developments.

Risks and Challenges
  1. Investment in Mining Hardware: Purchasing and setting up specialized equipment (Hotspots) can be costly.

  2. Technological Advancements: New technologies may make current mining equipment obsolete or less profitable.

  3. Network Competition: As the number of Hotspots increases, mining rewards may decrease due to increased competition for block rewards.

  1. Return on Investment: It is essential to consider the potential return on investment and the saturation level of the network before investing in Helium mining.

  2. Regulatory Risks: Governments may introduce regulations that could impact the operation or profitability of Helium mining.

  3. Cryptocurrency Market Volatility: The value of HNT tokens can fluctuate, affecting the profitability of mining operations.

Overall, Helium (HNT) is a decentralized network that connects IoT devices using specialized Hotspots and rewards users with HNT tokens for their participation in maintaining and expanding the network.

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Helium's strengths

Helium (HNT) has several strengths that contribute to its unique value proposition:

  1. Decentralized Wireless Network: Helium creates a decentralized wireless network that is independent of traditional cellular providers. This allows for a more cost-effective and scalable solution for IoT devices.

  2. LongFi Technology: Helium's LongFi technology, which combines LoRaWAN with blockchain, offers extended coverage, often up to 200 times further than standard WiFi. This makes it suitable for a wide range of IoT applications.

  3. Security and Encryption: The Helium network is fully encrypted, ensuring a high degree of security and reliability. This is particularly important for IoT devices that require secure data transmission.

  1. Low-Cost and Energy-Efficient: Helium hotspots are designed to be energy-efficient and cost-effective, making them a more sustainable option compared to traditional mining methods.

  2. Incentivized Network Participation: The Proof of Coverage consensus mechanism rewards users for verifying coverage and transferring data, incentivizing participation and ensuring the network's stability and growth.

  3. Scalability and Flexibility: Helium's decentralized nature and use of low-power wireless devices make it suitable for various applications, including asset tracking, smart cities, smart homes, agriculture, and logistics.

  1. Community-Driven: The Helium network is often referred to as "The People's Network," emphasizing its community-driven approach and the role of users in shaping and maintaining the network.

These strengths position Helium as a promising solution for IoT connectivity and a decentralized wireless network.

Helium's risks

Helium (HNT) is associated with several risks, including:

  1. Volatility Risk: The value of HNT tokens can fluctuate greatly, impacting profitability.
  2. Liquidity Risk: Market conditions can make it difficult to buy or sell HNT tokens quickly and at a stable price.
  3. Short History Risk: HNT has a relatively short history, making it harder to predict long-term performance.
  4. Demand Risk: The value of HNT is derived from the need for data credits, so if the network isn't utilized, token value may decline.
  5. Forking Risk: Changes to the blockchain can lead to forks, potentially affecting the value of HNT.
  6. Code Defects: Errors in the code can compromise the integrity of the blockchain and impact HNT value.
  7. Regulatory Risk: Changes in laws or regulations can negatively affect the use and value of HNT.
  8. Electronic Trading Risk: Technical issues with trading platforms can impact HNT transactions.
  9. Cybersecurity Risk: HNT is vulnerable to cyber attacks, which can lead to losses.
  10. Critical Flaw: A critical failure or flaw in the blockchain could lead to a loss of confidence and value.
  11. Ongoing Issues: Technical problems, such as API issues, can impact the network's scalability and user confidence.
  12. Competition: ISPs could outcompete Helium by integrating similar technology into their services, making Helium hotspots less relevant.
  13. Government Regulation: Regulatory actions could limit the use and value of HNT, particularly if they favor established telecom industries.
  14. Power Consumption: The power consumption of devices using Helium's LoRa technology compared to other methods could impact adoption.

These risks highlight the importance of thorough research and risk assessment before investing in HNT.

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Did Helium raise funds?

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Helium’s team

  • Amir Haleem: Co-founder and CEO of Helium, Inc. (now Nova Labs Inc.), who has defended the insider allocation of tokens and emphasized the risks taken by early supporters.
  • Shawn Fanning: Co-founder of Helium, Inc. (now Nova Labs Inc.), who helped envision a decentralized wireless infrastructure for the IoT industry.
  • Sean Carey: Co-founder of Helium, Inc. (now Nova Labs Inc.), who contributed to the development of the decentralized wireless infrastructure.
  • Frank Mong: COO of Helium, who wrote about the network being fair and open to all, but was involved in the insider allocation of tokens.

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