The question, what’s Helium, can be answered by looking at Helium through the lens of representing a dramatic shift in traditional connectivity solutions. Helium integrates Blockchain technology into wireless connectivity and leverages decentralised wireless networks to provide coverage. These networks aren’t owned by mobile network operators, as it historically has been, but instead are owned by any individual who needs to set up a network.
An overview of the Helium Network
The Helium network was launched in 2019 with the vision to build a decentralised, wireless network. Unlike traditional networks, which rely on telecom companies to build and manage infrastructure, Helium operates on a community-driven model.
Individuals and businesses can participate by setting up Helium hotspots, small devices that provide wireless coverage for IoT devices in exchange for earning Helium’s native cryptocurrency; the Helium Network Token (HNT). In doing so, users are incentivised to contribute to this network by setting up these hotspots. Hotspot operators are rewarded based on the amount of data transmitted through their device and their contributions.
How does Blockchain work?
Blockchain technology is a big part of Helium’s decentralised networks. It serves two purposes; providing a secure method for validating network transactions and offering a fair reward mechanism for hotspot operators.
Amy Garland, Business Development Manager at the Helium Foundation who featured on the IoT Unplugged podcast, said of Blockchain: “It wasn’t until 2019, when Blockchain became more of a household word, that it clicked this could be a way that solves the problem of how to grow a network to the point of where it’s useful and reliable.”
“A question we got all the time is, ‘Why do you need Blockchain and why did you choose to use it?’ What it does is enable the ability to have a network of hundreds of thousands of gateways operated by, for example, tens of thousands of users autonomously managed so the Blockchain facilitates millions of micro payments every day,” Garland added.
Data packets sent by IoT devices are relayed through Helium hotspots and the network uses a proof-of-coverage system to verify these hotspots are legitimately providing network coverage.
The proof-of-coverage system uses cryptographic techniques to ensure each hotspot is located where it claims to be and is subsequently contributing to the network. As an overview of how it works, one hotspot sends a cryptographic challenge to a nearby hotspot. This challenged hotspot must respond by demonstrating that it is indeed within the coverage area and providing wireless service.
Other nearby hotspots act as witnesses to these challenges, confirming that the challenged hotspot is in range and functioning properly. Once the challenge is completed, the transaction is recorded on the Blockchain, to ensure transparency.
Helium in the face of IoT connectivity
The continued rise of the IoT has put even greater pressure on networks to be efficient, scalable and cost-effective, capable of handling a greater number of devices and data transmissions. The growth of IoT devices in applications including environmental monitoring and smart metering has meant the requirement for wireless connectivity in locations where connectivity is challenging and traditional infrastructure is costly.
Helium’s decentralised model allows for a vast, global network without the need for large-scale infrastructure investments by any single entity. Anyone can purchase and set up a Helium hotspot, providing connectivity to IoT devices in exchange for HNT. As the network grows, IoT devices can move between coverage areas.
The scalability of the Helium Network is one of its key advantages, as it’s not confined to traditional infrastructure.
Conclusion
Helium’s use of Blockchain technology is a fundamental part of its decentralised, community-driven wireless networks.
As IoT devices and solutions continue to necessitate connectivity, decentralised wireless networks represents a shift in how we think and approach wireless infrastructure, creating a scalable, secure and community-driven solution.
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