What You Need to Know About Helium
Bringing DePIN to Solana
Helium is leading the way when it comes to Decentralized Physical Infrastructure Networks (DePIN). The project essentially rewards users who run Hotspots that provide wireless network coverage in a given vicinity, using the native $HNT token.
With their migration to Solana earlier this year, Helium has become part of the greater Solana ecosystem and narrative.
Over and out ⬇
Background on Helium & DePIN
Helium is a global, distributed network of Hotspots that create public, long-range wireless coverage for LoRaWAN-enabled IoT devices and cellular devices.
Decentralized Physical Infrastructure Networks (DePIN) allow for physical infrastructure to be built with token rewards used as incentives.
Helium allows users to deploy hotspots in their homes, providing wireless network coverage in a given area.
In return, users can earn $HNT.
Helium wasn't the first in the DePIN space but it aims to build up a large supply quickly to meet existing demand.
Helium started as an IoT company over 10 years ago, initially focusing on specific verticals like cold supply chains; the realization of network-wide coverage and incentivization came later.
The Helium protocol was designed to enable large applications that require small data sets.
Helium started around 2013 but launched its first product in 2019.
In the last four years, the IoT network has grown tremendously, with coverage in every major city.
Abhay Kumar, CEO of Helium, says the network is the go-to choice for low-power networks and that this growth was enabled by hotspots.
Helium introduced the concept of proof of coverage to validate the physical locations of hotspots. Hotspots challenge each other, and their interactions are recorded on-chain, with rewards given for accurate information. Originally, each hotspot ran a full copy of the blockchain.
Migration to Solana
Initially, the plan was for Helium to build its own layer-1 blockchain for the application.
The team recognized the challenge of maintaining a layer-1 blockchain while also building a wireless network.
They evaluated other blockchains like Bitcoin and Ethereum but had concerns about fees.
The low cost of Solana is a major benefit; Kumar also appreciates the single token standard in the ecosystem and has mentioned ongoing efforts to integrate Helium into other platforms.
He praises the proactive building culture in the Solana ecosystem.
“Helium has revolutionized network connectivity through decentralized physical infrastructure, demonstrating an ability to change wireless networks by attracting participation by individuals and enterprises alike. ”
-Solana co-founder Anatoly Yakovenko
The community has been highly involved in Helium's development, offering strong governance participation.
Multiple factors influenced the move to Solana, including familiarity with Solana's team and ecosystem.
Solana's key compatibility was also a significant factor in the decision to migrate, making it easier to migrate user wallets without bridge risk.
Kumar highlights the importance of user experience in Helium's strategy; he says most people who come to Helium know little about crypto but become experts through community involvement.
The migration from Helium's layer-1 to Solana was designed to be as seamless as possible for users.
Hotspots & Helium Mobile
Helium utilizes a global distributed network of hotspots.
Hotspots are physical devices with attributes like location and antenna information.
When onboarding, users provide this information, which is stored as metadata in compressed NFTs.
Helium's proof-of-coverage system has different scaling factors based on the density of hotspots in an area.
Hotspots communicate to confirm their activity and are rewarded accordingly.
Helium Mobile is a new kind of carrier built on the Helium network by the original founding team, Nova Labs.
The carrier aims to offer a better way to deploy carriers and is working with T-Mobile as a roaming partner.
The aim is for this to be a mass-market product, not something constrained to crypto users.
Kumar has shared that his mother was easily onboarded to Helium Mobile without requiring any crypto knowledge.
The carrier's app hides the wallet and the crypto elements, making it user-friendly.
The Helium Mobile app handles all the crypto elements, and users can opt-in to experience these features.
This is in contrast with traditional Internet Service Providers (ISPs), which often sell user data.
Helium Mobile's approach to launching focuses first on dense coverage in specific areas like Miami.
The business model aims to prove itself before expanding to other areas.
Future plans for Helium include different kinds of carriers that could be built on the network.
In the future, any individual or brand could build their own carrier. Abhay says this is similar to the proliferation of gift cards by various brands, speculating that even individuals like Mr. Beast might have their own carriers enabled by Helium.
Cellular radios on the Helium network are often installed by professionals and run on high-quality internet.
Users have the choice to share their network, similar to sharing Wi-Fi passwords.
According to Ahbay, ISPs have shown interest in partnering with Helium, especially with the promise of 5G bringing more data into the picture.
He sees an incentive for users to upgrade their services when they are also paid to share their bandwidth.
Abhay identifies two major tailwinds for Helium:
Increasing bandwidth demand on the mobile side and
The rising number of IoT devices.
Helium could empower individual users by enabling self-sovereign networks, thereby offering a more efficient way to provide internet coverage globally.
When it comes to organizational structure, the Helium Foundation focuses on the core protocol and is responsible for technical aspects.
Nova Labs, on the other hand, is like an app company that builds on top of the Helium network.
They work on Helium Mobile and another product group called 1663, which focuses on IoT services.
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