Helium(HNT)

Founded in 2013 by game developer Amir Haleem, Napster creator Shawn Fanning and Systems Engineer Sean Carrey, Helium network was launched in 2019 as a decentralized blockchain network allowing interconnectivity and communication between low-powered wireless IoT (Internet of Things) devices. These wireless devices transmit data through the network’s nodes, also called Hotspots, which work both as mining devices as well as wireless gateways. 

Hotspots usually come in the form of simple devices which can be installed in offices or homes, and earn their owners (node operators) rewards in Helium’s native coin HNT (Helium Network Token). Referred to as ‘The People’s Network’, Helium’s network is considered the world’s fastest-growing and largest LoRaWANs (Low Range Wide Area Network).

This network functions based on open-source, sophisticated technologies, which when combined, create a trustless and truly decentralized model for constructing wireless infrastructure. These technologies include but are not limited to: Proof of Coverage algorithm, HNT tokens & Data Credits and the Helium LongFi.

Helium’s main aim is to enhance the communication capabilities of IoT devices and shape a decentralized wireless infrastructure for the future.

HNT price

HNT crypto price stayed well under a dollar for almost a year after its mainnet launch in 2019. During this time, Helium was laying the ground for its network in different parts of the world. While HNT coin price breached the $2 mark for the first time in September 2020, its next big surge came along with a market-wide uptrend in February 2021, when it rallied to register a high of around $24 in late May 2021. 

A price correction for the entire crypto market followed thereafter. According to our HNT live price chart, the coin sprung back into action in late July 2021, when its price made a gradual ascent to almost $27 by August 2021. This spike came on the back of a $111 million token sale to multiple investors including Andreessen Horowitz and the network having crossed the 100k Hotspots mark earlier that month. 

The price of HNT coin hit an all-time high of over $59 on November 7, 2021, 3 days before BTC registered its own ATH for the year amidst bullish market conditions. HNT’s fully diluted valuation on that day was well above $13 billion. After that, however, the coin’s price receded into the low $20s in the first half of 2022. 

How HNT works

Helium’s ecosystem comprises node operators that run Hotspots and provide network coverage over a specific radius, its developer community and IoT devices that use the network for sending and receiving data.

Helium blockchain employs a novel algorithm referred to as ‘Proof of Coverage’ (PoC) which verifies that Hotspots are actually situated where they claim to be. In other words, it constantly verifies the Hotspots’ locations and that they’re offering wireless network coverage from that point.

Its consensus protocol, called the Helium Consensus Protocol, is based on the HoneyBadger BFT (HBBFT) protocol. As a result, it is tolerant of Byzantine failures, ensuring that consensus is reached as long as there is a certain minimum number of participants. 

HNT cryptocurrency is used to reward node operators for their work. Apart from HNT, node operators also earn a transaction fee in the form of a separate token called Data Credits (DCs), paid by the network users. While HNT is mined and distributed among the Hotspot owners, investors and Helium Inc., the Data Credits are non-fungible tokens that are created by burning HNT through a Burn-and-Mint equilibrium. These are non-exchangeable and tied to a single user.

As mentioned above, all transactions done on the Helium blockchain are paid for in DCs, and the fee paid varies depending upon the task. More details on transaction fees can be found here. At the time of writing, Helium blockchain had a block creation time of 60.51 seconds.

HNT news, updates and highlights

HNT price movements are largely co-related to various external and internal factors. For instance, Helium coin's price usually rises whenever any noteworthy partnership, expansion or adoption-related news comes to the fore. The same also happens when the crypto market witnesses an overall bullish sentiment.

An example of such news is when in October 2021 Helium announced a significant partnership with DISH Network, that further expanded its distributed 5G platform. The collaboration offered the subscribers of DISH Network an opportunity to run Helium nodes and earn HNT coins in return.

Similarly, in February 2022, Helium managed to raise $200 million in a Series D funding round, at a $1.2 billion valuation. Among the news investors were FTX Ventures and Tiger Global. The funds were necessary to help Helium significantly expand its global footprint.

Frequently asked questions about HNT

• Can you mine or stake HNT?

Yes, you can both mine and stake HNT. To mine HNT, you need to invest in and run a Helium Hotspot (or node). It’s also possible to stake HNT and earn staking rewards in return.

• What are some of the best HNT wallets?

Helium recommends using Helium App wallet, Helium Command Line Interface (CLI) wallet and Helium Ledger Wallet to store your HNT. 

• What can you do with HNT?

You can stake your HNT coins to earn staking rewards and also trade them against popular cryptocurrencies on established exchange platforms.

• How to buy HNT?

The best way to buy HNT is from reputed crypto exchanges like Binance, KuCoin, Gate.io and others.