Web 3.0 crypto projects experienced very rapid growth in 2021. The growth was based on the assessment of crypto investors that Web 3.0-based crypto projects have a bright future, especially if Web 3.0 is officially released and realized.
One of the Web 3.0 cryptocurrencies that managed to steal the market’s attention is Helium. The project is a blockchain-based decentralized network dubbed “The People’s Network.”
What is Helium?
Helium is a blockchain-based network that connects IoT (Internet of Things) devices. Helium technology enables communication between devices with the system transmitting data through network nodes.
The nodes that make up the network are known as Hotspots in the Helium system. The public network coverage provided is in the LoRaWAN ecosystem. LoRaWAN is a media access control layer protocol that has a cloud component that can be interfaced with platforms such as Helium.
Helium is one of the largest LoRaWAN networks with more than 25,000 Hotspots acting as nodes on the network. Hotspot combines the power of LoRaWAN and mining tools based on blockchain technology. There are many miners that have been produced, all of which promise to make it easy for users to obtain Helium coins. Some are really reliable, for example Nebra miner. Some tools are faster than others but of course consistency is the most important factor in any crypto coin mining venture.
As a key part of the crypto Web 3.0 project, Helium aims to prepare an efficient and functional IoT for the future. One of the biggest problems in the IoT sector is the lack of privacy of popular IoTs, like Google or Amazon. Thanks to the Web 3.0 concept that relies on decentralization, the blockchain technology used to build Helium can connect IoT devices with maintained privacy.
How Web 3.0 Helium Works
In keeping with the goals of Web 3.0, Helium aims to create a reliable, decentralized and global network for IoT devices that relies on the network’s native token holder community, $HNT. The network consists of nodes, namely Hotspots run by node operators who are $HNT holders. By hosting Hotspots and managing nodes, users are incentivized for their participation in the functionality of the network.
WiFi already has support for IoT devices. However, supporting as many different devices as possible poses privacy concerns. Helium solves this problem using a decentralized architecture and consensus mechanism that gives the network 200 times greater coverage than a WiFi connection with IoT.
The consensus mechanism on which the network runs is known as Proof-of-Coverage (PoC). This consensus mechanism is responsible for distributing rewards to $HNT holders and node operators. Users need to purchase a mining device from the Helium website to set up Hotspot. Miners generate radio frequencies by connecting to the network, while the PoC mechanism validates Hotspot locations.
Network participants can have one of three roles critical to the functioning of the network, namely Challenger, Transmitter, and Witness. Rewards distributed through the system also depend on the roles on the Hotspot network.