Key Takeaways
- Helium uses blockchain to create a network for Internet of Things (IoT) devices. This network aims to be an alternative to existing IoT communication methods.
- Anyone can participate in the network by setting up a Helium Hotspot, a specialized miner. Hotspots provide network coverage and validate transactions, earning HNT tokens as rewards.
- HNT is the native token of the Helium network. It incentivizes network participants and pays for data transferred over the network.
What Is Helium (HNT)?
Helium (HNT) is a project that utilizes blockchain technology to create a decentralized network for Internet of Things (IoT) devices. The project aims to address limitations in current IoT communication by building a decentralized, low-powered network that offers global coverage.
How Does Helium (HNT) Work?
Helium (HNT) functions within a decentralized network for Internet of Things (IoT) devices. Here’s a breakdown of how it works:
Network Infrastructure
The network’s core consists of Helium Hotspots, which are low-powered towers operated by users. These hotspots utilize the Low Power Wide Area Networking (LoRaWAN) protocol for long-range wireless communication with IoT devices.
Data Transfer And Rewards
Data Transmission
IoT devices transmit data packets through nearby Helium Hotspots. The hotspots relay these packets to the Helium blockchain, ensuring secure data transfer.
HNT Rewards
Hotspot owners earn HNT tokens for two key actions:
- Data Transfer – They receive HNT to transfer data packets across the network. The more data transferred, the greater the rewards.
- Proof-of-Coverage (PoC) – The network periodically challenges hotspots to verify their location validity. Successfully participating in these challenges earns Hotspots additional HNT rewards.
Transactions And Utility
- Data Credits – HNT generates Data Credits, a separate token used to pay for data transfer on the Helium Network. Think of HNT as the fuel source for Data Credits, which are the actual “tickets” used for network transactions.
- Transaction Fees – HNT is also used to pay transaction fees on the Helium blockchain, including those for adding new devices to the network.
Helium (HNT) Token And Tokenomics
Tokenomics
The HNT token is Helium’s native cryptocurrency. It is used for:
- Facilitating Transactions
- Hotspot Incentives
- Transaction Fees
Token Details
Total Supply: 223,000,000 HNT
Circulating Supply: 173,026,962 HNT
Current Price: $8.30
Market Capitalization: $1,434,732,831
This information is current as of December 5th, 2024, and the token’s price, market value, and available supply may fluctuate.
Distribution
- Network Data Transfer (30%)
- Hotspot Infrastructure (35%)
- Helium, Inc. & Investors (35%)
Where Can I Buy Helium (HNT)?
Bybit – This exchange is known for its derivatives and margin trading features, but you can also use the platform for spot trading.
KuCoin – KuCoin is a smaller exchange known for its competitive fees and support for many cryptocurrencies.
Coinbase – Coinbase is an American-based cryptocurrency exchange that allows you to buy cryptocurrencies using various payment methods, including bank transfers, debit cards, and wire transfers.
Is Helium (HNT) A Good Investment?
Pros
- Scalability – The Helium Network’s design facilitates scalability as more hotspots are added, potentially leading to broader coverage and a more powerful network.
- Real-World Applications – Helium’s focus on IoT connectivity has the potential to revolutionize various industries, such as supply chain management and asset tracking.
- DePIN Sector – The Helium Network allows users to earn HNT to provide data transfer services. This creates a new monetization opportunity for Hotspot owners and a sustainable economic model for the network.
Cons
- Emerging Technology – The Helium Network and its token, HNT, are still relatively new technologies. Their long-term viability and success depend on wider adoption and overcoming technical hurdles.
- Competition – While Helium has a first-mover advantage in this space, established tech giants or other blockchain projects may develop competing solutions.
- Hardware Investment & Maintenance – Participating in the Helium Network by running a Hotspot requires upfront investment in hardware and ongoing maintenance.
Final Thoughts
Whether Helium (HNT) is a good investment depends on your risk tolerance and goals. Remember, this guide only provides a starting point for your research. Always conduct your due diligence before making any investment decisions.
