Helium, commonly referred to as The People's Network, is pioneering a transformative approach to Internet of Things (IoT) connectivity. By leveraging blockchain technology and a decentralized model, it offers a community-driven alternative to traditional wireless infrastructure. This guide explores Helium's core functionalities, its migration to the Solana blockchain, ecosystem dynamics, native tokens, and real-world applications.
What Is the Helium Network?
The Helium Network is not a conventional wireless system. It is a global ecosystem of hotspots that operates on blockchain principles. These hotspots, incentivized by token rewards, work collectively to provide and maintain wireless coverage in a cost-effective, decentralized, and community-centric manner.
Instead of relying on centralized telecom giants—which often face single points of failure and security vulnerabilities—Helium is powered by individuals united by a shared goal: advancing global connectivity.
At the heart of Helium’s subnetworks, including IoT and mobile networks, is the Proof-of-Coverage (PoC) consensus algorithm. This mechanism provides a robust and secure infrastructure for efficient operations. Helium’s tokenomics, featuring HNT, IOT, and MOBILE tokens, are integral to its diverse functionalities.
Helium’s Impact on IoT Networks
Helium’s technology supports a wide array of IoT devices—from pet trackers and smart delivery systems to scooters, cooling systems, and smart lighting. Currently, the network boasts nearly one million hotspots worldwide, spread across 77,000 cities in 192 countries. This makes Helium the largest LoRaWAN (Long-Range Wide Area Network) in the world.
Expanding into the 5G arena, Helium has deployed 8,000 CBRS (Citizens Broadband Radio Service) 5G radios within a year. With over 100,000 actively connected devices (excluding roaming partner devices), Helium’s ecosystem is a major force in the decentralized IoT landscape. The network also collaborates with 25 hotspot manufacturers, four LoRaWAN roaming partners, and recognized carriers.
Helium’s Migration to Solana: Enhanced Scalability, Reliability, and Utility
In a strategic move, Helium transitioned from its Layer 1 blockchain to the Solana blockchain on April 18, 2023. This shift aims to improve the network’s scalability, reliability, and utility.
Scalability Challenges on the Original Helium Blockchain
Helium faced growing challenges as its network expanded, particularly in managing two core components:
- Proof-of-Coverage (PoC): This consensus algorithm validates that hotspots provide wireless coverage to IoT devices and rewards them with HNT. As more hotspots joined the network, efficiently verifying coverage became increasingly difficult.
- Reliable Data Transfer: Ensuring secure, accurate, and reliable data transfer between devices and through access points grew more complex as the network scaled.
The original blockchain could not handle the rising volume and complexity of network activities. Migrating to Solana provided a solution—offering advanced features like a large developer community, greater composability, improved token utility, and a scalable smart contract platform. The move was widely supported by the Helium community.
What Helium Users Can Expect After the Migration
Post-migration, users can expect several key improvements:
- Hotspots as Non-Fungible Tokens (NFTs): Hotspots are now minted as NFTs on Solana, enabling new token experiences, credential provisioning, and authenticity verification. Compressed NFTs reduce storage costs, transaction fees, and improve scalability.
- HNT Token Evolution: LoRaWAN hotspot hosts now mine IOT tokens (instead of HNT) via PoC. IOT serves as both an incentive and governance token for the Helium IoT subnetwork. HNT remains the primary token for network usage and device integration. It is also burned to create Data Credits (DCs), which are used for data transfer and communication within the network. Users can redeem IOT for HNT via the Helium Wallet app.
- Renewed Governance Model: Helium shifted from a token-centric approach to a vote-escrow (veToken) model. Participants must lock Helium tokens to vote, with voting power determined by the amount locked and the lock duration. This model applies to HNT, IOT, and MOBILE tokens, enabling autonomous governance for IoT and 5G subnetworks. Staking HNT yields rewards, while staking IOT or MOBILE only grants voting power.
- Smart Contract Functionality: Smart contracts enable sophisticated decentralized applications (DApps), fostering innovation and allowing developers to build advanced decentralized solutions.
- Lower Transaction Costs: Average transaction fees dropped significantly—from $0.35 on Helium to $0.00025 on Solana.
- Access to DeFi: Solana’s vibrant DeFi ecosystem offers HNT, IOT, and MOBILE holders access to diverse markets and liquidity rewards on platforms like Orca and Kamino. The Helium Wallet also provides direct DeFi access.
- Global Developer Community: While Helium initially used Erlang (a less common language in crypto), it now benefits from Solana’s highly engaged global developer community. Regular Solana Hacker Houses promote collaboration, exposure, and talent acquisition.
- Improved Network Efficiency: Network functions transition to oracles, enabling faster data processing and reducing reliance on chain uptime for data transfers.
- SPL Compatibility: The Solana Program Library (SPL) standard allows Helium tokens to integrate seamlessly with Solana-based platforms, exchanges, wallets, and service providers.
- Open-Source Development Opportunities: Developers can leverage Helium’s core technology to build new applications—from asset tracking and air quality monitoring to wildfire detection and pedestrian traffic analysis. The Helium Foundation’s grants program funds open-source hardware and software development for decentralized wireless networks.
How Does the Helium Network Work?
Helium combines wireless infrastructure with blockchain technology to create a global peer-to-peer (P2P) wireless network. It relies on PoC mechanisms to validate and incentivize participants, primarily through specialized devices called hotspots. These nodes provide long-range, low-power wireless coverage for IoT devices and maintain reliable data transfer.
Distinct subnetworks operate independently within the ecosystem, each offering unique services and setting individual fees for users.
Helium IoT Network
Helium’s IoT network integrates blockchain with LoRaWAN protocols, enabling robust connectivity for diverse applications. Businesses, organizations, and individuals deploy sensors and actuators that require long-range, low-power connectivity.
Hotspots collect data from LPWAN (Low-Power Wide-Area Network) sensors and relay it through Helium’s LoRaWAN servers to device-specific application servers. These servers present insights via user-friendly dashboards, supporting efficient IoT device monitoring and tracking. Applications span smart cities, agriculture, logistics, and more.
Users are charged 1 Data Credit (DC) per 24-byte data packet sent or received.
Use Cases
- Roof Tec: This Washington-based roofing expert uses Helium’s IoT network for real-time monitoring. By integrating Dragino sensors and MyDevices dashboards, Roof Tec avoided a $40,000 roof replacement by detecting a disconnected fan causing mold buildup. Helium’s long-range coverage in remote areas proved invaluable.
- Greenmetrics: A Portuguese climate-tech company uses Helium to revolutionize golf course irrigation. Wireless soil sensors and weather stations connected via Helium help courses optimize water usage, reducing irrigation costs by 14–28% and hardware costs by 5–10 times. This approach aligns with UN Sustainable Development Goals.
- Owen Equipment: A U.S.-based machinery supplier transformed its tracking and logistics operations with Helium. Facing high costs and unreliable 3G cellular networks, Owen Equipment partnered with LoneStar Tracking (using Helium’s LoRaWAN) for robust, cost-effective solutions. This led to a 47% cost reduction, protection of over $2 million in assets, and doubled battery life.
Helium Mobile 5G Network
Helium Mobile, developed by Nova Labs, is a decentralized 5G network offering affordable mobile connectivity. It supports users with compatible devices (e.g., smartphones or tablets equipped with Helium Mobile hotspots). These hotspots use CBRS and WiFi technology for flexibility.
Users can actively participate by improving coverage and earning MOBILE tokens for data transfers and PoC contributions. Tokens can offset up to three months of phone service bills (including taxes and fees).
Positioned as an alternative to traditional mobile connectivity, Helium Mobile adopts a community-driven approach. Recent milestones include a $5 unlimited plan in Miami and expansion into Broward and Palm Beach counties.
Pricing differs from the IoT network: users are charged $0.50 per gigabyte (GB) of data used.
Who Created the Helium Network?
Helium was founded in 2013 by Amir Haleem (CEO), Shawn Fanning (creator of Napster), and Sean Carey (experienced entrepreneur). Together, they aimed to reduce barriers to IoT connectivity by building a community-driven wireless network powered by economic incentives.
Helium Tokens: HNT, IOT, MOBILE, DC, and SOL
Helium’s token ecosystem includes several key assets:
- HNT: The native cryptocurrency and protocol token. Used to obtain Data Credits (DCs) for network transactions and participate in governance. Max supply: 223 million. HNT can be staked for rewards.
- IOT: The protocol token for the IoT subnetwork, mined by LoRaWAN hotspots. Serves as a reward token for hosts and a governance token. Max supply: 200 billion. IOT can be swapped for HNT via the Helium Wallet.
- MOBILE: The protocol token for the mobile subnetwork, mined by CBRS and WiFi hotspots. Functions similarly to IOT—providing rewards and governance rights. Max supply: 230 billion. Convertible to HNT.
- DC (Data Credits): Utility tokens pegged to the U.S. dollar, used for data transmission fees. Generated by burning HNT.
- SOL: Required for interacting with the Solana blockchain. Used for sending tokens, staking, payments, swaps, NFT minting, reward redemptions, and on-chain transactions.
Helium Governance
Helium uses on-chain voting on Solana for transparency and immutability. The Realms tool enables voting, and the veToken model (inspired by Curve) maximizes rewards and facilitates governance.
Each subnetwork (main Helium, IoT, and mobile) has distinct governance rules:
- Helium Network: Staking HNT grants veHNT, used to vote on network-wide proposals (e.g., HNT emissions).
- IoT Subnetwork: Staking IOT grants veIOT, providing voting power for IoT-specific growth and development.
- Mobile Subnetwork: Staking MOBILE grants veMOBILE, enabling voting on mobile network expansion and governance.
Frequently Asked Questions
What is the primary purpose of the Helium Network?
Helium aims to create a decentralized, community-powered wireless network for IoT and mobile devices. It rewards participants with tokens for providing coverage and validating network integrity.
How do users earn rewards on Helium?
Hotspot hosts earn tokens (IOT for LoRaWAN, MOBILE for 5G) by providing wireless coverage, transferring data, and participating in Proof-of-Coverage. Tokens can be redeemed, staked, or used for governance.
What are the key benefits of Helium’s migration to Solana?
The migration enhances scalability, reduces transaction costs, introduces smart contracts, improves network efficiency, and provides access to Solana’s developer ecosystem and DeFi platforms. Explore more strategies for leveraging blockchain advancements.
How does Helium’s governance model work?
Helium uses a vote-escrow system where users lock tokens (HNT, IOT, or MOBILE) to gain voting power. Longer lock periods increase voting influence. Each subnetwork has its own governance rules.
What are Data Credits (DCs) used for?
DCs are used to pay for data transfers on the network. They are generated by burning HNT and are pegged to the U.S. dollar to ensure stable transaction fees.
Can Helium tokens be traded on exchanges?
Yes, HNT, IOT, and MOBILE are traded on various cryptocurrency exchanges. Always use reputable platforms and ensure compatibility with Solana-based tokens. Get advanced methods for managing and trading digital assets.
Conclusion
Helium represents a paradigm shift in wireless connectivity, moving away from traditional models and empowering individuals to build and govern networks. Its unique blend of wireless infrastructure, blockchain technology, and decentralized governance fosters inclusion and autonomy. As the network evolves, it promises a more collaborative and user-driven future for global connectivity.