Introduction to the Helium Network
The Helium Network is a revolutionary network that provides cost-effective wireless connections to individuals and devices worldwide. Over the past four years, it has transformed the way we connect and communicate, inspiring the development of new applications, reducing operational costs for businesses, and expanding the reach of existing networks. At the heart of this network is the Helium Foundation, which oversees the builders and users of the ecosystem, ensuring responsible growth and maturity.
The Role of Tokens in the Helium Network
Tokens play a crucial role in the Helium Network, supporting its growth and ensuring its sustainability. The primary token used in the network is called Helium Network Token (HNT). HNT serves as the native cryptocurrency and is burned to produce Data Credits, which are essential for transmitting device data and have a consistent value in USD. Other subnetwork tokens, such as IoT and MOBILE, derive their value from HNT and can be redeemed for it. In order to utilize the network, HNT must be burned.
Understanding Data Credits (DC)
Data Credits (DC) are the accepted payment method for transmitting data across the Helium Network. Each Data Credit has a fixed price of $0.00001 USD. Similar to prepaid cell phone minutes, Data Credits are non-transferable and can only be spent by the holder.
Incentives in the Helium Ecosystem
The Helium ecosystem comprises various subnetworks, each with its own unique services and pricing models. For example, the IoT network charges users 1 Data Credit (DC) for every 24-byte packet of data they send or receive, while the MOBILE network charges $0.50 for every gigabyte (GB) of data used. The more data that is transferred on a subnetwork, the more Data Credits are burned, and the more Helium Tokens (HNT) the treasury of that subnetwork earns. This creates an incentive for subnetworks to facilitate more data transfers.
The Helium IoT Network
The Helium IoT Network is a decentralized network designed to provide internet connectivity to Internet of Things (IoT) devices. Unlike traditional networks, the Helium IoT Network combines blockchain technology with wireless protocols, specifically LoRaWAN (Long Range Wide-Area Network), to offer a more expansive and inclusive connectivity solution for IoT devices.
Integration with LoRaWAN Protocol
The Helium IoT Network seamlessly integrates with the LoRaWAN protocol, which is specifically designed for IoT devices. In this network, Helium Hotspots gather data from LPWAN Sensors (IoT devices) and relay it to Helium LoRaWAN Network Servers. From there, the data is sent to specific device application servers, which display it on data dashboards for users to monitor and analyze.
Use Cases for the Helium IoT Network
The use cases for the Helium IoT Network are vast and diverse. One example is 1663™, an IoT solutions provider managed by Nova Labs, the creators of the Helium Network. They provide customized end-to-end solutions that bring clients' IoT visions to life. Another example is DIMO, a user-owned IoT platform that allows drivers to collect and use their vehicle data with a network of apps and partners. DIMO Macaron, the first-ever connected vehicle device on the Helium Network, democratizes access to automotive diagnostics tools and vehicle telematics.
Greenmetrics.ai, based out of Portugal, deploys environmental monitoring and flood detection sensors to address climate change concerns. Damal Redes, located in Valencia, Spain, specializes in placing sensors in homes to monitor energy usage and environmental factors such as air quality. Lime Loop's Sustainable Packaging integrates Helium and Sidewalk trackers with upcycled plastic mailers, reducing the carbon footprint of traditional packaging.
The Helium IoT Network has formed partnerships with industry giants such as Deutsche Telekom and the LoRa Alliance, expanding its coverage to over 77,000 towns and cities around the world. Jose Antonio Hernandez, the Technical Lead at DAMAL REDES, highlights the capability of the Helium Network in continuously monitoring crucial data, stating, "No other technology can match this capability."
Hotspots in the Helium Network
Within each subnetwork, individual Hotspots play a crucial role. These Hotspots can be seen as individual nodes or access points in the network. The Hotspots that contribute the most in terms of coverage (Proof of Coverage or PoC) or data transfers are rewarded with sub tokens. Owners of these sub tokens can exchange them for Helium Tokens (HNT) by engaging in transactions with their respective subnetwork's treasury. This layered system of incentives and charges promotes the growth, efficiency, and participation of valuable network contributors.
The Helium 5G Network
Helium Mobile, built by the Nova Labs team, utilizes the Helium 5G Network. This network aims to provide coverage at a lower cost and rewards users along the way. The Helium community has celebrated milestones such as the introduction of a $5 unlimited plan in Miami and expansion into Broward and Palm Beach counties. The launch of the Helium Mobile Hotspot and the recent announcement of phone bill payments through MOBILE rewards further demonstrate the network's commitment to affordability and user benefits.
Conclusion: The Value of the Helium Ecosystem
The Helium Network's strategic partnerships, continuous innovation, and active community participation highlight its strength and impact. However, it is the real-world solutions and the democratization of connectivity that truly underscore the value of the Helium ecosystem. As the network continues to evolve, the Helium Foundation expresses deep appreciation to stakeholders, partners, visionaries, builders, and users for their active participation. The community remains the lifeblood of the Helium Network, driving its growth and success.
Source https://blog.helium.com/helium-ecosystem-health-a-closer-look-at-iot-lorawan-depin-and-5g-usage-on-the-network-f74465b474a6
