Helium - Decentralized Wireless Network: Next-Generation IoT Technology

Helium is not just an ordinary blockchain project. It is a global connectivity ecosystem where millions of IoT devices communicate through community-managed wireless infrastructure, rather than giant telecommunications corporations.

Understanding Helium Better

The Helium network operates on a simple yet powerful principle: (hotspot) access points deployed by the community automatically form a global wireless network. Operators of these hotspots are rewarded with tokens for providing connectivity services. This approach eliminates the single point of failure (single point of failure) and traditional security issues of centralized telecom networks.

Helium’s token system includes HNT (native token), IOT (for IoT network), MOBILE (for 5G mobile services), DC (Data Credits), and SOL (for blockchain interactions). Each token plays a specific role in maintaining network operations.

The Proof of Coverage (POC) (Proof of Coverage - Coverage Verification) consensus mechanism is at the heart of Helium’s architecture, verifying that hotspots truly provide wireless coverage as promised, creating a trusted data layer for the entire network.

Impressive Network Coverage Numbers

Since launching the first hotspot in 2019, Helium has grown into the world’s largest LoRaWAN network:

• Nearly 1 million hotspots operating across 192 countries
• Coverage in over 77,000 towns and cities
• 8,000 CBRS 5G stations deployed within a year
• Over 100,000 connected IoT devices actively operating
• 25 hotspot manufacturers in the ecosystem

This scale demonstrates that a decentralized model is not only feasible but can also surpass the limitations of traditional infrastructure.

Turning Point: Transition to Blockchain Layer 2

In April 2023, Helium made a strategic decision — shifting from an independent blockchain to operating as a subnet on a layer 2 blockchain. This move was driven by the need to improve scalability, stability, and integration with the broader crypto ecosystem.

Initial Blockchain Challenges

Regarding the POC algorithm: As the number of hotspots rapidly increased, continuously verifying coverage commitments from millions of devices became overwhelming. Each hotspot participating in the POC cycle generated enormous computational loads.

Regarding data transmission: Ensuring accurate and secure data transfer between millions of devices, hotspots, and application servers required a platform capable of handling such scale. The network activity complexity exceeded the initial blockchain’s capacity.

The solution was found through collaboration with a high-performance layer 2 blockchain, offering benefits like a large developer community, better compatibility, and scalable smart contracts.

What Changes for Helium Users?

Hotspot as NFT

Hotspots will be minted as NFTs, opening new possibilities for asset verification and management. NFT compression technology is also applied, reducing file size and storage costs, thereby lowering transaction fees.

New Reward Mechanism

LoRaWAN hotspots will now mine IOT tokens (instead of HNT), functioning simultaneously as a reward and governance token for the IoT network. HNT still exclusively supports network usage and device activation. The burning of HNT to obtain Data Credits (DC) for data transmission remains in place.

Upgraded Governance Model

Helium adopts veToken (ve-tokenomics), requiring participants to lock tokens to vote. Voting power depends on both the amount of tokens locked and the locking duration. This creates a stronger long-term incentive compared to previous models.

Smart Contract Integration

New DApps are being developed, enabling more complex operations on Helium. This paves the way for innovative solutions in asset management, utilization optimization, and decentralized finance services.

Significant Reduction in Transaction Fees

Initial transaction fees on Helium’s network averaged around $0.35. After the transition, fees dropped to $0.00025 — a reduction of tens of thousands of times. This makes small transactions economically feasible.

Access to DeFi Ecosystem

Tokens HNT, IOT, MOBILE can now be used within decentralized finance protocols, providing access to liquidity markets and yield farming opportunities.

Growing Developer Community

Previously, Helium used the Erlang programming language (less common in crypto). The transition connects Helium to a larger ecosystem with thousands of developers, increasing opportunities for collaboration, integration, and tool development.

Oracle and Faster Data Processing

Oracle functions are integrated, allowing devices to process data faster without depending on blockchain block times. This enhances service stability and reliability.

SPL Standard for Compatibility

Helium tokens now comply with the SPL standard, enabling easy integration with exchanges, wallets, and other service providers within the ecosystem. This broadens utility and accessibility for users.

How Does Helium Work?

The Helium network architecture combines three main components:

Wireless Layer: Hotspots provide LoRaWAN coverage for low-power IoT devices to send data over long distances.

Blockchain Layer: Ensures transparency, security, and immutability of transactions and rewards.

Incentive Layer: Tokens are distributed to hotspot operators, maintaining community engagement.

Helium IoT Network

This network combines blockchain technology with the LoRaWAN protocol, enabling sensors, transmitters, and similar devices to connect over long ranges with low power consumption.

Cost: Users pay 1 Data Credit for each 24-byte data packet sent or received.

Practical Applications

Roof Tec (roofing experts): Deploy Dragino sensors to monitor roofs in real-time. Early fault detection in ventilation fans helps avoid roof replacement costs up to $40,000.

Greenmetrics (climate technology): Use Helium network to optimize irrigation systems on golf courses. Results: 14-28% reduction in irrigation costs and 5-10 times savings on hardware costs.

Owen Equipment (specialized machinery): Switch to Helium’s LoRaWAN for logistics tracking. Achieved 47% operational cost reduction, protected assets worth over $2 million, and doubled battery life.

Helium 5G Mobile Network

Helium Mobile offers decentralized mobile connectivity at low cost. Users can:

• Deploy CBRS/WiFi mobile hotspots
• Earn MOBILE tokens for contributions
• Use tokens to pay phone bills (up to 3 months)
• Access unlimited services starting from $5 in major cities

Cost: $0.50 per GB of data — much cheaper than traditional networks.

The Team Behind the Project

Helium was founded in 2013 by three key figures:

• Amir Haleem (CEO): Tech and startup expert
• Shawn Fanning: Founder of Napster, the first P2P sharing platform
• Sean Carey: Experienced entrepreneur

They collaborate to democratize global IoT connectivity, removing unnecessary barriers and empowering individuals.

Helium Token System

HNT - Native Token

Current Price: $1.35 (down 3.86% in 24 hours)
Market Cap: $252.28 million
Circulating Supply: 186,321,438 / 223,000,000

HNT has a dual role: (1) Users burn HNT to obtain Data Credits for network transactions, (2) Holders can stake to participate in governance.

IOT - IoT Network Token

IOT is mined by LoRaWAN hotspots and functions as a reward mechanism for hosts. It also plays a key role in governance decisions for the IoT network. Max supply: 200 billion tokens.

MOBILE - Mobile Network Token

Similar to IOT, MOBILE is issued to CBRS and WiFi hotspots. Users can convert MOBILE into HNT. Max supply: 230 billion tokens.

Current Price: $0.00
Market Cap: $11.21 million

DC - Utility Token

Data Credits (DC) are created by burning HNT. This mechanism automatically adjusts supply based on network demand, helping to stabilize prices.

SOL - Solana Token

Current Price: $141.72 (down 3.36% in 24 hours)

SOL is used for blockchain interactions, including sending tokens, staking, trading, and paying fees.

Helium Governance

Helium uses on-chain voting via Realms, allowing participants to decide on network development issues. The veToken model is applied, where longer lock durations result in greater voting power.

Subnet Networks

Main Helium Network:
Stake HNT to get veHNT, vote on issues affecting the entire network (token issuance, global rules).

IoT Subnet:
Stake IOT to get veIOT, focus on developing IoT devices and applications.

Mobile Subnet:
Stake MOBILE to get veMOBILE, decide on 5G network development and expansion.

This structure allows each subnet to have a certain degree of independence while maintaining ecosystem connectivity.

The Future of Decentralized Connectivity

Helium represents a fundamental shift in how we think about telecom infrastructure. Instead of relying on large corporations, networks are built by millions of ordinary individuals, each incentivized with economic tokens.

Helium’s evolution from an independent blockchain to an integrated network with scalable platforms demonstrates the project’s adaptability. These changes not only improve performance but also open new development opportunities, from DApps to next-generation IoT solutions.

With over 1 million hotspots worldwide, millions of connected devices, and a continuously growing developer community, Helium proves that global connectivity is not exclusive to giants. It can be a product of community collaboration, blockchain technology, and smart economic incentives.