The Helium network was launched in 2019 and was originally based on the Helium Hotspots, which used the LoRaWAN radio protocol with the aim of providing data connectivity to IoT devices such as trackers.
The network became incredibly popular, and websites like Mighty Gadget expressed scepticism at first due to the slower rollout in countries like the UK, but their coverage of Helium helped boost the popularity in the UK, and coverage expanded quickly.
Helium faced a lot of issues with the production of hotspots in the early days, which was another factor that caused issues with the rollout of the network.
It later split off with the Helium Hotspots, no longer earning HNT, but Helium IOT, and a new Helium 5G gateway that earns Helium Mobile was launched.
This article aims to explain the differences between the three tokens, what the practical uses of the Helim hotspots and gateways are, and how people can earn tokens.
Helium Network Overview
The Helium Network, initiated in 2019, is a decentralised wireless network that enables devices to wirelessly connect to the internet over long ranges. It’s built on blockchain technology, offering a secure and decentralised approach to network coverage. The network’s primary aim is to facilitate the Internet of Things (IoT) devices, such as sensors and trackers, by providing low-power, long-range connectivity.
Helium HNT
- Nature: Helium HNT is the native cryptocurrency of the Helium Network.
- Utility: It’s used as an incentive for individuals and companies who deploy and maintain the network’s coverage through Hotspots.
- Earning HNT: Hotspot owners earn HNT by providing network coverage and validating wireless transactions, a process termed “Proof-of-Coverage.”
Helium Mobile (MOBILE)
- Introduction: Helium Mobile is a more recent development within the Helium ecosystem, aimed at providing cellular connectivity.
- Difference from HNT: While HNT is earned for providing IoT network coverage, MOBILE tokens are focused on expanding and utilizing 5G cellular coverage.
- Earning MOBILE: Similar to HNT, the earning mechanism revolves around providing network coverage, specifically for mobile devices using the 5G spectrum.
Helium IoT (Internet of Things)
- Function: Helium IoT refers to the part of the network that provides connectivity for IoT devices.
- Hotspots: These are physical devices (similar to Wi-Fi routers) that provide this connectivity.
- Earning Helium IoT: Operators of these hotspots earn HNT by ensuring network availability for IoT devices, which can range from environmental sensors to asset trackers.
How Do Helium IoT Hotspots Work?
- How They Work: IoT Hotspots work by creating a LongFi network—a combination of LoRaWAN (Long Range Wide Area Network) and blockchain technology.
- Utility: They provide miles of wireless network coverage for IoT devices at a fraction of the cost of cellular data.
- Earning Mechanism: Hotspot owners earn HNT for validating wireless transactions and transferring device data.
How Do Helium 5G Gateways Work?
- Function: These gateways expand the network’s capability into the 5G cellular range.
- Utility: They provide high-speed internet access for mobile devices, supplementing the existing cellular infrastructure.
- Earning MOBILE: Operators of these 5G gateways earn MOBILE tokens by providing 5G coverage, verified through a similar Proof-of-Coverage process as the IoT hotspots.
Final Thoughts
By integrating blockchain with wireless networking, the Helium Network is carving out a new niche in decentralised network services.
Its dual-token system (HNT and MOBILE) incentivises the expansion of both IoT and 5G cellular coverage, paving the way for a more connected, efficient, and accessible wireless world.
Like almost all cryptocurrencies, Helium HNT saw massive growth in 2021, peaking at over $50 in November 2021 before the massive crypto crash caused the price to plummet throughout 2022, hitting lows of around $2.
During 2023, the outlook for Helium and crypto in general looked bleak, but Bitcoin has been steadily growing with massive growth since October 2023
With the launch of the Helium 5G gateways, Helium has ended up being one of the cryptos with the fastest growth. This has been fuelled by the launch of a competitively priced $20 monthly nationwide unlimited mobile service. The success of the Helium 5G gateways has caused a 10-fold growth in value for the Helium Mobile token in less than a month, and it has had a knock-on effect on HNT, causing that to skyrocket from $1.6 to $9.2 a little over a month.
Helium has received a lot of criticism in the past, but, unlike all the popular meme coins, there are practical applications, with this being a utility token and will hopefully have better long-term prospects than many other cryptos.
