The Helium blockchain uses a new consensus algorithm known as Proof of Coverage (PoC) and the mainnet for the Helium blockchain was launched in 2019. Since its launch, the Helium blockchain has grown especially in parts of North America and Western Europe.
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Choose your quick section of our Helium review below.
A Quick Overview of our Helium Review:
Helium is based on a variety of principles namely that it is permissionless, if a hotspot is operating according to the consensus rules of Helium and the network specifications, it is truly decentralised by design, and the protocol is tolerant of the Byzantine failures so that consensus can be achieved.
What is Helium?
The Helium Network is a long-range wireless network that is global and distributed. It provides coverage for devices on the Internet of Things (IoT) which are LoRaWAN-enabled. The network consists of Hotspots which provides the public network with coverage, with providers being compensated in HNT for their service.
Key Features and Takeaways of Helium
Helium is a unique and innovative cryptocurrency project and network that has the following key features and takeaways:
LoRaWAN is a networking protocol which is point-to-multipoint and which uses Semtech’s LoRa modulation scheme to function. Apart from relying on radio waves, how they communicate with the various LoRaWAN gateways is crucial for them to conduct encryption and identification.
The Helium blockchain uses a new consensus algorithm known as Proof of Coverage (PoC) and the mainnet for the Helium blockchain was launched in 2019.
Since its launch, the Helium blockchain has grown especially in parts of North America and Western Europe.
PoC was created specifically for use by the Helium network, and it works to verify hotspots in the network and ensures that they are physically located where they claim to be. In addition, it also ensures that they are honestly representing wireless coverage created by the Hotspot for its specific location.
The success of the Helium network is dependent on it being able to provide reliable wireless network coverage for devices which are connected and actively using the network, which is the motivation behind the creation of the consensus mechanism PoC.
Proof of Coverage relies on three distinct characteristics namely that radio frequencies have limited physical propagation, and therefore distance, the strength of a received radio frequency signal is proportional to the square of the distance from the transmitter, and radio frequency travels at the speed of light with no latency.
Helium is based on a variety of principles namely that it is permissionless, if a hotspot is operating according to the consensus rules of Helium and the network specifications, it is truly decentralised by design, and the protocol is tolerant of the Byzantine failures so that consensus can be achieved.
Helium Mining
HNT cannot be mined as result of the unique consensus mechanism that it uses. However, this does not mean that users cannot earn HNT.
The idea of helping the network by running a Hotspot is a welcome idea, albeit altruistic, and Helium has set itself up to offer HNT as an incentive. This means that most people will not simply help the network without expecting something in return.
However, the presence of incentive rewards makes it possible to earn HNT tokens while running a Hotspot. Helium only rewards Hotspots who have earned them once each epoch ends.
Each epoch in Helium is 30 blocks, and the network aims to create a new block every minute. This means that the total theoretical time for an epoch is equal to 30 minutes.
As of April, 65% of the mining rewards are distributed to Hotspots and the remaining 35% is distributed to Helium, Inc. along with some other earlier investors.
Users, and subsequent Hotspots, can be rewarded for all the following activities:
By submitting valid proof of coverage challenges, as a “Challenger”.
The successful participation in PoC as a Target, or “Challengee”.
By witnessing a PoC challenge.
Transferring device data over the network.
Serving as a consensus group member.
The distribution of 65% of rewards for Hotspots can be broken down as follows:
Challengers – 0.95% – Hotspots are chosen by the network to issue challenges, which are encrypted messages, to a target group of Hotspots.
Proof of Coverage – 5.31% – Hotspots can earn a share of HNT when they participate in the consensus mechanism and validate the wireless coverage of their peers.
Witness – 21.24% – These are Hotspots that monitor and report PoC activity, or beacons, of others. They receive a portion of HNT based on the activity that they have witness and the reward scaling of the Challengee.
Network Data Transfer – 32.5% – HNT is distributed to Hotspots who transfer data from devices in the network. The amount of HNT allocated is proportional to the amount of data that a Hotspot transferred.
Consensus Group – 6% – There are Hotspots that are selected, at random, to the Consensus Group to perform a variety of tasks, including the validation of transactions and publishing new blocks onto the blockchain.
Pros and Cons
| ✔️Pros | ❌Cons |
|---|---|
| Helium uses innovative technology that can revolutionise the world of telecommunications | Helium is competing with major, well-established telecommunication corporations |
| Helium is scalable and secure | |
| There is a PoC consensus mechanism that is sophisticated and ensures that the network can function optimally | |
| HNT can be staked and there is an innovative structure of distribution |
Transaction Fees
| Type of Fee | Information |
|---|---|
| Withdrawal Fees | 0.15 HNT |
Should you buy Helium?
Even though Helium has gained a significant amount of popularity in recent years, it is still going up against major telecommunication companies who have been around for decades. However, as blockchain technology is more widely accepted, and most industries start using it, Helium can become a valuable investment as more businesses start depending on its services.
How to buy Helium (HNT)
Step 1 – Register an account with Gate.io
Navigate to the official Gate.io website and select the option to “Sign Up” from the homepage.
Complete the online registration form by providing country/region, a selected username, email address, and user-selected password. Read and accept the User Agreement and Privacy and select “Next”.
Create a fund password and select “Create Account”. Complete the “I am not a robot” reCAPTCHA. Check your email inbox for the activation email and click on the link in the email. If the link does not work, you can copy and paste the URL into your browser.
Log into your account using your credentials and complete the reCAPTCHA.
Check your email again for the verification email that contains the 6-digit code and click on “Confirm”. Enter the code that you received into the blocks provided and select “Log In” to proceed.
Before you can use the platform to purchase Helium/HNT and other cryptocurrencies on Gate.io, you must complete the “Know Your Client” or KYC procedure to verify your identity and your proof of residence.
Click on “KYC Now” at the bottom of the webpage to start the process.
Select whether you are an individual or an organisation by selecting “Verify Now” under the relevant option.
Select your country from the dropdown list, enter your full name followed by confirmation thereof. Select your ID document type and provide your ID Number as shown on your official ID Document.
Click on the first image to upload a clear photo of the front of your ID document followed by a clear photo of the back of the document.
Next, write your Gate.io unique ID on a piece of paper and take a photo of yourself holding up your identity document (front) and the paper containing your unique ID.
Once you have done this, click on “Confirm and Submit”.
Next, you must enable the Timed One-Time Password (TOTP) to be able to log into your account. This can be done by clicking on “Set Now” at the bottom of the page.
On the new page that loads, select “Click here” to set up Two-factor Authentication.
Download Google Authenticator onto your mobile device by making use of any of the abovementioned methods.
Follow the steps indicated to add your Gate.io account by scanning the QR code or entering your unique key.
Enter the TOTP, your fund password, and the code sent to your email address and select “Enable Two-factor Authentication”. With this setup, you must use the Google Authenticator app to sign into your account every time.
Step 2 – Deposit funds
You must note that Gate.io is only a crypto-to-crypto exchange which means there is no fiat gateway. The only way through which funds can be added, is to transfer an existing crypto into your Gate.io wallet.
HNT can only be bought through Tether/USDT or Bitcoin/BTC while it can be traded with USD as a futures contract.
Navigate to the deposit/withdrawal section by hovering over your account and selecting the relevant option. Choose from the list of coins in which you can make a deposit and select “deposit” next to the appropriate coin.
You will be redirected to a page which generates a deposit address for the coin that you wish to deposit.
Copy this address, or scan the QR code, into the wallet where you are making a withdrawal from and depositing to Gate.io and wait for the relevant blockchain to confirm your transaction. Once the transaction has been completed and verified by the nodes on the chain, the coins will be sent to the Gate.io wallet and you can start trading HNT.
Step 3 – Explore your trading options
Gate.io offers a variety of ways through which cryptocurrencies can be obtained. Each of these can be explored individually depending on your trading needs and objectives.
To start trading HNT, select the option from the “Trade” Menu. Enter “HNT” into the search bar to see which trading options are available.
For spot trading, for instance and as an example, select HNT_USDT or HNT_ETH. Once you have selected, you will be directed to the exchange page which corresponds to the cryptocurrency pair HNT/USDT or HNT/ETH.
Here, you will see that you have the option to buy or sell HNT either as a limit order, grid trading, or as a time condition. The most common trading method is that of limit trading and thus it will be used for this guide.
Step 3 – Buy HNT through via Limit Order
To buy HNT and create a limit order for it, you can enter the amount of HNT you want to purchase, and the price you want to buy it at in USDT. This tool will tell you what the overall cost is in USDT, or any other chosen counter-currency, which will be deducted from your wallet once the order has been executed.
Step 4 – Sell HNT through via Limit Order
To sell HNT, find the panel under the chart and create a limit order for USDT according to your own preferences. Note that with a peg to USD, HNT that you exchange for USDT will hold the flat value that it has despite market conditions in the cryptocurrency market.
Step 5 – Withdraw funds
To withdraw funds, you will use the same page in Gate.io which was used to make a deposit.
Click on the deposit/withdrawal option on your Account dropdown and find the wallet of the currency that you wish to withdraw. You can do this easily by using the search bar provided.
Instead of a deposit address being generated, you will do this on the exchange, or the wallet being used as the destination for withdrawal of funds from Gate.io. Paste the address of the receiving wallet in the field provided and provide your Gate.io fund password, email code, and TOTP before selecting “Submit Request”.
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Frequently Asked Questions
When was Helium first launched?
Helium was launched in 2019.
Who founded Helium?
Amir Haleem, Shawn Fanning, and Sean Carey founded helium.
What is “ICO”?
It is Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.
When was Helium’s ICO and how much did it raise?
Helium did not have an ICO.
What is Helium’s total supply?
The maximum supply of HNT is 223 million.
What is the purpose of Helium?
Helium uses radio frequencies to create peer-to-peer (P2P) wireless networks to power IoT devices. In addition, it aims to reward users who provide coverage.
On which blockchain is Helium based?
Helium is based on its own blockchain.
Does Helium work with smart contracts?
Yes, Helium has the infrastructure to support smart contracts.
Does Helium have potential to become more valuable?
Yes, despite being faced with competition from telecommunication companies, Helium has the potential to become more valuable as blockchain technology becomes more widely accepted and used.
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