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To understand Helium’s business model, we must first examine its history. A group of entrepreneurs who saw the potential of the Internet of Things but found it challenging founded the company in 2013. Linking sensors must be easy to install and inexpensive to operate if they are valuable and widespread. As a result, Helium developed its proprietary radio protocol for sensors when in a launch.
Neither of those plans worked out. Helium had to change the model. In his longtime advocacy for a decentralized internet, Helium’s CEO and co-founder, Amir Haleem, developed LongFi. This decentralized IoT networking protocol incorporates cryptocurrency to make it profitable for individuals to join Helium’s network.
The cheap and plentiful availability of low-power wide-area networks (LPWANs) was key to Haleem’s vision for the Internet of Things. Unless you charge a lot for a small amount of data, you will only get high-end applications such as tracking diamond shipments. In addition, many current networks can meet those needs, such as cellular. A low-power network was required to transport small amounts of data for a cent or two per transaction for the Internet of Things.
In that case, there wouldn’t be a need for a corporation to create a subscription plan if it wanted to connect a smoke detector to the internet. NB-IoT is a low-cost IoT network utilizing regularly licensed airwaves that the cellular group is developing. Sigfox and Senet are working on creating low-power IoT networks from scratch.
Lead to the creation of the Helium system and the Helium token network. Haleem will install Helium’s physical routers on customers’ broadband networks to enable them to create an IoT ad hoc network that would transmit data through their home or workplace internet connection. The Helium Network Tokens (HNT) is a cryptocurrency that incentivizes users to manage Helium wireless and make them more secure.
It is a secure network, so you will need your own unique security words to unlock your account, allowing you to acquire tokens and make changes. They are necessary for the Helium hotspot miner to work and to generate tokens. Write down your ideas on the card provided with the box and keep it safe. Helium networks are owned in perpetuity once purchased and linked to your account.
After you have secured your text and stored it, the procedure of setting up the hotspot usually takes about two minutes. It only takes a few cords plugged in and a few steps away. The final network verification took about a week.
The Helium Hotspot Setup Guide
The day my Helium mining hotspot arrived was a good one. I set it up without any hassle. A small booklet explaining how to set it up was included inside the box, as was the hotspot itself, which measured six inches by six inches and came with Helium stickers, an antenna, and a power cord.
Steps to set it up are simple:
- Mount the antenna on the side of the hotspot.
- Power up the computer, but don’t connect the power cord just yet.
- There are iOS and Android apps for Helium Hotspot.
- Install the app on your phone, create a wallet account, and generate 12 words (if you’re familiar with cryptocurrency wallets, these words will be like the passwords to your wallet – make sure to save these in a secure place).
- Your Helium Hotspot app requires a PIN to operate.
- You can choose your hotspot model in the app by selecting “Set up Hotspot.”
- Consider a convenient location for your hotspot
- Recognize that you have understood the guide.
- Helium’s use of secure methods to diagnose any problems with your hotspot is acknowledged here, and Helium will not have access to your private keys.
- Turn location permission on in the Helium App.
- Turn on your hotspot by pushing the power button – it should turn blue when powered up.
- Activate your hotspot in the app.
- The app will prompt you to scan for your hotspot.
- Your hotspot needs a connection to your WiFi.
- Your phone’s location can be accessed by the application so that you can choose where your hotspot locate.
- You can better pinpoint your hotspot location by adjusting the map.
Digging into the Details About Mining HNT
As far as earning HNT is concerned, the first step is to transfer data from devices to the Helium network. Helium estimates that around a third of the mining rewards come from data transfer, and there is a variation based on how much data your Hotspot handles.
HeliumMart It’s a startup selling Helium hotspots and Internet of Things devices. They are a reputed European company selling hotspot miners for the Helium decentralized network. Please visit their website and purchase your desired hotspots and IoT.
Prove your coverage and earn Helium Crypto
HNT can also earn with the Proof-of-Coverage Challenge. In a challenge, a hotspot in the network will choose a challenger at random. Challenger hotspots are using this activity to ask another to prove their coverage. Other nearby hotspots are subsequently “witnessed” to this challenge.
Participating hotspots will receive a portion of the HNT allotted for the challenge. Those who live in urban areas with lots of hotspots nearby will have more opportunities to participate in these activities, but they will also split the payouts with more hotspots.
Join a consensus group to earn Helium Crypto
As a third way of earning HNT rewards, hotspots can join the consensus group if they are selected randomly by the network. The consensus group adds transactions to the blockchain by validating them, and they get substantial rewards for doing so.
Since late January, the price had steadily increased from less than a dollar per coin in December 2020. I am not writing to advise you on investing your money, and I cannot predict whether HNT will rise or drop. I find this an exciting project, but I am not sure whether it will succeed in the way the founders want. If you plan on making any investments, you should invest only with money you can afford to lose.