What is Helium IoT Network?

Founded in 2013 by Amir Haleem, Sean Carey, and Shawn Fanning, Helium initially focused on developing new wireless technology solutions. Between 2015 and 2019, the project raised over $53 million through four rounds of financing. The network officially launched in 2019, aiming to solve common IoT challenges.

In 2019, Helium introduced its blockchain-based IoT network, Helium IoT, designed to provide low-cost, high-efficiency device connectivity and data transmission through decentralization. Users are incentivized to set up mining devices that offer coverage and bandwidth, ensuring the network’s security and stability. Helium is the name of the entire project, while Helium IoT refers to the specific application connecting IoT devices.

The Helium network uses a unique consensus algorithm called Proof-of-Coverage (PoC). Unlike traditional Proof-of-Work (PoW) or Proof-of-Stake (PoS) algorithms, PoC achieves consensus by verifying the coverage and data transmission of users’ devices. Miners earn rewards by providing coverage and transmitting data, thereby enhancing the network’s coverage and capacity.

Today, Helium’s IoT network has extensive global coverage. Through LoRaWAN hotspots deployed in multiple countries and regions, the Helium network offers large-scale, low-cost wireless connectivity. These hotspots are voluntarily set up by individuals and businesses, forming a decentralized network that allows IoT devices to transmit data across wide geographic areas.

The Helium network has significant coverage in North America (USA and Canada), Europe (UK, Germany, France, and the Netherlands), and Asia (China, India, and South Korea). These hotspots cover major cities, industrial areas, and even remote and rural regions, providing reliable IoT connectivity.

This broad coverage supports various IoT applications, including smart agriculture, logistics tracking, environmental monitoring, and smart city solutions. As more hotspots join the network, Helium’s coverage and service quality will improve, significantly supporting the development of the global IoT ecosystem.

Source: explorer.helium

Development Progress

2019: Launch of the Decentralized Network

In 2019, Helium launched its decentralized network and opened registration to users worldwide. The initial coverage focused on major cities and tech communities, drawing in early tech enthusiasts and IoT industry professionals.

2020: User Growth and Network Expansion

With a growing user base, Helium’s network began to expand globally. Users contributed to building and maintaining the network by purchasing and setting up Helium mining devices, which provided connectivity services for other devices. By 2020, Helium’s IoT ecosystem started to take shape, attracting more developers and businesses to explore its potential.

2021: Ecosystem Expansion and Application Development

In 2021, Helium IoT experienced rapid growth. The network continued to expand its coverage and user base, connecting more IoT devices. The developer community began creating various applications and solutions on the Helium network, such as environmental monitoring, smart city infrastructure, and agricultural technology.

2022: Technical Optimization and Global Deployment
In 2022, Helium focused on improving its network technology and user experience. By introducing new technologies and upgrading existing infrastructure, Helium enhanced network performance and security. The global deployment accelerated, extending coverage to more geographic areas and industry sectors.

2023: Transition to Solana and Expansion of Hotspot Coverage

Transition to Solana Blockchain
On March 28, 2023, the Helium network officially transitioned to the Solana blockchain. This move aimed to capitalize on Solana’s high throughput and low transaction fees to improve network performance and scalability. Post-migration, Helium’s transaction processing speed increased significantly, enhancing user experience. Additionally, the reduced transaction fees lowered user costs during transactions and data processing.

Expansion of Hotspot Coverage
The transition to Solana resulted in better performance and lower costs, attracting more users to deploy hotspots. This increase in hotspots expanded Helium’s network coverage, allowing more IoT devices to connect. In 2023, Helium focused on promoting hotspot deployment in new global markets, especially in Asia, Europe, and Latin America, accelerating its global expansion.

New Applications and Partnerships
Helium formed partnerships with various IoT companies and platforms to develop IoT solutions on the Helium network. These collaborations boosted Helium’s applications in smart cities, agriculture, logistics, and more. Leveraging Solana’s development ecosystem, Helium attracted more developers to contribute to network building and application development, resulting in numerous innovative applications and services.

2024: Ongoing Network Expansion and Deepening Industry Applications

Ongoing Network Expansion
Helium will continue to incentivize users to deploy hotspots, aiming to double the number of global hotspots by the end of 2024, thereby expanding network coverage. Additionally, Helium will optimize hotspot devices and network protocols to enhance performance and stability, ensuring efficient network operation.

Deepening Industry Applications
In 2024, Helium will promote smart city solutions based on its network in various cities globally, including smart parking, environmental monitoring, and public safety applications, to improve urban management efficiency and residents’ quality of life. Partnering with agricultural technology companies, Helium will advance smart agriculture solutions using sensor networks for real-time monitoring and management of crop environments, increasing agricultural productivity and yield. Furthermore, Helium will collaborate with logistics and supply chain companies to implement logistics tracking solutions, enabling real-time monitoring of goods, thus improving logistics efficiency and transparency.

Technological Innovation and Upgrades
In 2024, Helium will develop and introduce a new generation of IoT communication protocols to enhance network connection efficiency and data transmission speed, supporting a wider range of IoT devices. The company will also explore the application of edge computing within the Helium network, deploying edge computing capabilities on hotspot devices to improve data processing efficiency and reduce the burden on central servers.

Enhancing Community Engagement
In 2024, Helium plans to regularly host community events and developer conferences to foster communication and collaboration among community members, promoting innovation and experience sharing. A series of educational and training programs will be introduced to help new users and developers quickly get started with the Helium network, encouraging broader participation in the network’s growth and development.

Helium Network’s Three Tokens

The Helium project includes three tokens: HNT (Helium Network Token), IOT (Internet of Things Token), and MOBILE. Here’s how they function:

HNT (Helium Network Token):
HNT is the primary token of the Helium network, incentivizing miners to build and maintain the network. Miners earn HNT by providing network coverage and transmitting data. HNT can also be used to pay for network services and other transactions within the network.

IOT (Internet of Things Token):
IOT is a specialized token within the Helium network, used for data exchange and payments between IoT devices. It is designed to facilitate transactions and data transmission among devices on the Helium network, ensuring interoperability and efficient data exchange.

MOBILE:
MOBILE is associated with Helium’s mobile network, a sub-project of the Helium network. The MOBILE token is likely used to reward and incentivize users or entities contributing to the mobile network. It supports the development and expansion of Helium’s mobile network.

Each of these tokens serves distinct functions and purposes, but collectively, they are crucial components of the Helium ecosystem, supporting its operation, growth, and user engagement.

IOT Token Economics

IOT serves as the incentive and governance token for the Helium IoT network, mined by LoRaWAN hotspots based on data transmission rewards and Proof-of-Coverage.

The first IOT tokens were minted on April 18, 2023, following the network’s migration to Solana. The minting address for IOT on the Solana blockchain is iotEVVZLEywoTn1QdwNPddxPWszn3zFhEot3MfL9fns.

Source: explorer.helium

Exchanging HNT

The IOT token is always backed by HNT (Helium Token) and can be converted to HNT anytime. This mechanism operates through utility scores across multiple networks within the Helium Network, with each network receiving an HNT pool allocation based on its utility score.

Detailed Exchange Mechanism

Network Utility Score and HNT Pool Every network in the Helium Network is allocated a specific HNT pool according to its utility score. The utility score measures the network’s actual contribution in terms of data transmission and coverage, serving as a comprehensive assessment of network performance and service quality. Networks with higher utility scores receive larger HNT pools.

Treasury Swap Contract
The exchange rate is determined by a smart contract known as the Treasury Swap Contract, which uses an algorithm to dynamically adjust the rate. This contract ensures that the conversion rate between IOT tokens and HNT is fair and reasonable, directly tied to the network’s utility score. This algorithmic approach guarantees both token liquidity and the stability and security of the system.

Exchange Platforms

Helium Wallet Application
The Helium Wallet application is the main platform for exchanging IOT tokens for HNT. Users can easily manage and convert their IOT tokens using this app. With its intuitive user interface, the wallet app makes the exchange process simple and clear. Users only need to select the exchange option in the app to convert IOT to HNT at the current exchange rate.

Open Source Tools on the Solana Blockchain
Besides the Helium Wallet application, users can also utilize open source tools available in the Helium GitHub repository to exchange IOT for HNT directly on the Solana blockchain. These tools offer a flexible option for tech-savvy users, allowing them to conduct exchanges according to their specific needs and preferences. Transactions on the Solana blockchain are not only fast but also secure and reliable, further strengthening the decentralized nature of the Helium network.

HNT Token Burn

In the Helium network, HNT tokens serve not only as a cryptocurrency but also play a vital role in network operations and device connectivity. One key function is burning HNT to obtain non-transferable Data Credits (DC) pegged to the US dollar, which are used to pay various transaction fees on the network.

Data Credits, being non-transferable and pegged to the US dollar, maintain a fixed monetary value. This ensures transparent and predictable fee payments and cost forecasting. By using Data Credits for payments, users avoid market price volatility, allowing better planning and management of their activities and costs within the Helium network.

When users need to pay transaction fees, such as for data transmission, device registration, and blockchain transactions, HNT can be burned. Burning HNT means permanently removing it from circulation, which both reflects participants’ contributions to the network and increases the scarcity of HNT tokens. This economic design in the Helium network encourages long-term holding and participation, as only HNT holders can obtain Data Credits to pay for network services. This mechanism ensures economic stability and sustainability for the network while providing a way for participants to earn rewards through active involvement.

Overall, HNT tokens, through their interaction with Data Credits, create a financially self-sustaining ecosystem that supports the Helium network’s growth and expansion. This economic model not only incentivizes participants but also provides the necessary resources and funding to achieve the network’s long-term vision and goals.

Token Distribution

IOT follows a minting schedule similar to that of HNT, with a maximum supply of 200 billion (200,000,000,000) tokens. The IOT issuance plan halves every two years, aligning with the HNT halving schedule. The emission plan was established in HIP-52 and confirmed in HIP-77, as detailed below:

Source: docs.helium

For complete details on the token issuance, please refer to the IOT section of this document: Token issuance as of the Solana migration.

Recent IOT Price Trends and Outlook

The recent price trends of IOT tokens have shown volatility, reflecting market sentiment and external influences. As of June 2024, IOT token prices have decreased by approximately 22.8% over the past month, mirroring the broader cryptocurrency market trend. The recent downturn in the cryptocurrency market can be attributed to macroeconomic factors, regulatory uncertainties, and shifting investor sentiment. Despite the overall bearish market, IOT continues to demonstrate significant intraday volatility.

Source: CoinmarketCap

Despite recent price fluctuations, the long-term outlook for IOT tokens remains dependent on the overall development of the Helium network and market acceptance of its technology and applications. As IoT and 5G networks continue to expand, IOT tokens are likely to discover more use cases, potentially driving a price recovery in the future.

Conclusion

In summary, in 2023, Helium IoT significantly enhanced network performance and scalability by migrating to the Solana blockchain, achieving notable success in expanding hotspot coverage and deepening industry applications. Looking ahead to 2024, Helium aims to further expand its network, deepen applications in smart cities, agricultural IoT, and logistics tracking, promote technological innovation, and boost community engagement to build a world-leading decentralized IoT network.

The IOT token, supported by HNT and a dynamically adjusted exchange mechanism, ensures stability and utility within the Helium network. Users can easily manage and exchange tokens through the Helium Wallet application or open-source tools on the Solana blockchain, maximizing the use of the Helium network’s various services and features. This efficient token management system not only enhances the network’s overall performance but also provides users with a more flexible and convenient experience.

Through these efforts, Helium is laying a solid foundation for the future of the global IoT ecosystem.