How Helium Miners Power the Internet of Things (IoT) Revolution

 

What is Helium miner and how does it work?

block-chain24.com

6 min

November 14, 2022

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Mining helps to verify the legitimacy of transactions carried out through a blockchain, such as the Bitcoin network. Miners can start mining cryptocurrencies using hardware such as a central processing unit (CPU) or application specific integrated circuits (ASICs). Alternatively, they can use Android and iOS smartphones to mine cryptocurrencies of their choice.

A Helium miner is a device designed to participate in the Helium Network, a decentralized wireless network specifically built for the Internet of Things (IoT) and smart devices. The Helium Network leverages a combination of wireless technology, blockchain, and cryptocurrency incentives to create a low-power, long-range wireless network for IoT devices, allowing them to connect to the internet and communicate with each other.

Here's how a Helium miner works:

1. **Hardware**: A Helium miner is a physical device equipped with radio transceivers. These transceivers communicate with IoT devices that use the Helium network protocol.

2. **Proof of Coverage (PoC)**: Helium miners provide coverage to IoT devices in their vicinity. They prove their coverage by creating Proof of Coverage challenges, which are essentially radio signals that IoT devices receive and use to validate that the miner is providing network coverage in a specific area.

3. **Blockchain**: Helium uses a blockchain to record and validate transactions and network participation. Miners submit Proof of Coverage challenges and other data to the blockchain.

4. **HNT Tokens**: HNT (Helium Network Token) is the native cryptocurrency of the Helium network. Miners earn HNT tokens as rewards for providing coverage and participating in the network. These tokens have real-world value and can be traded or converted to other cryptocurrencies.

5. **Data Transfer**: IoT devices that use the Helium network send and receive data through the miners. This data can be sensor readings, location information, or other IoT-related data.

6. **Decentralization**: Helium is a decentralized network, which means there is no central authority or server controlling it. The blockchain and the network's operation are maintained by a community of miners and users.

7. **Incentives**: Miners are incentivized to deploy and maintain Helium miners because they can earn HNT tokens as rewards for their network participation. These rewards come from transaction fees and are distributed to miners based on their Proof of Coverage and the amount of data transferred through their miners.

8. **Coverage and Network Growth**: The network grows as more Helium miners are deployed in various locations, providing coverage to IoT devices. Users and businesses benefit from this low-power, long-range network for their IoT devices.

Overall, Helium miners play a crucial role in expanding and maintaining the Helium Network, which offers a cost-effective and decentralized solution for IoT connectivity while allowing miners to earn cryptocurrency rewards for their participation. 

But what about mining cryptocurrencies through a decentralized wireless network? It sounds strange, but nowadays miners can mine cryptocurrencies without relying on expensive infrastructure. Helium Network made this possible by allowing nodes to act as access points.

In this article, we will discuss the Helium ecosystem and the mining of its HNT token.

What is Helium?

Helium is a distributed hotspot network that offers LoRaWAN-enabled Internet of Things (IoT) devices, a long-range wireless service accessible to citizens around the world. IoT devices can communicate with each other via LoRa thanks to the open LoRaWAN protocol. IoT devices are intelligent "gadgets" that connect to a network and communicate, offering a wider range of connectivity options than Wi-Fi.

The Helium blockchain was designed solely to encourage the development of real decentralized wireless networks. With Helium, anyone can own and manage a wireless IoT network using a unique portable radio router known as an access point. Hotspots are plug-and-play wireless devices that provide a higher quality connection than Wi-Fi.

Hotspots are used by miners to create The People's Network, a long-range wireless network that provides coverage for IoT devices with meager power requirements in exchange for Helium (HNT), the native cryptocurrency of the Helium blockchain. The Helium community has allowed third parties to sell a range of Helium hotspots.

Proof-of-coverage (PoC), a new algorithm of operation, is used by the Helium blockchain to verify that access points accurately describe their location and the wireless coverage they generate. Radio waves are used in the mining process, and access points are rewarded for acting as peer performance witnesses, performing PoC tasks, and exchanging device data. Helium Network Explorer is the most valuable tool for viewing POC related data.

But why do customers choose Helium Network over their standard ISP? Possible reasons include a high level of security, full Helium encryption, and universal internet access available.

In addition, users do not have to bear the costs that the mobile operator may charge, such as over-the-limit fees or the cost of additional equipment such as a SIM card. Users only pay for the data they used to connect their devices using the Helium console to start using the Helium network.

What is Helium miner?

The Helium miner provides Helium wireless network coverage using specialized hardware known as access points. By purchasing or creating a hotspot that is WHIP compliant and depositing tokens that match the density of other miners operating in their area, users become miners on the Helium network.

In addition to the blockchain protocol, the Helium Wireless protocol called WHIP, which is a network of independent vendors rather than a single coordinator, offers a method for bidirectional communication between wireless devices and the Internet. The task of access points to verify that the device data was sent to the specified location and that the miner should be compensated for their services falls to Internet applications that buy encrypted device data from miners called routers.

Access points are of three types:

• Full Access Points: Maintain a complete copy of the HNT blockchain and are rewarded for all participation-related activities, including proof of coverage.
• Light Hotspots: Use validators to participate as full access points without incurring the additional cost of storing a local copy of the blockchain using Light Hotspot software. In addition, they are rewarded for proof of coverage and data transfer activities.
• Data-only hotspots: use validators to get information about the Helium blockchain, just like light hotspots, but are only rewarded for data transfer actions.

How does Helium mining work?

Instead of processors or ASICs, Helium uses radio wave technology to mine. In addition, blockchain technology is used to create a wireless network that is more reliable than that provided by established traditional wireless service providers.

Using special devices called LoRaWAN transmitters, Helium miners provide long-range wireless coverage. In return, miners receive HNT. The amount of the reward correlates with the data that the miner will transfer, that is, the more data the miners transfer, the more money they receive.  

To verify the location of access points, the network automatically and randomly assigns tests to confirm coverage. Access points receive directives or "requests" from validators to pass the payload to any nearby access points to observe and verify participation in the PoC. 

Each compatible device requires data credits (DCs) to send data to the Internet. DCs are created by burning HNT to achieve a Burn and Mint Equilibrium (BME), which lowers the overall supply of HNT. The BME model uses tokens as a proprietary form of payment, but customers who wish to use the service do not pay directly to the counterparty. Instead, they are burning tokens.

How to set up Helium miner?

As mentioned in the previous sections, an access point miner, an antenna (and its location), cables, a smartphone, and a router are the prerequisites for setting up a Helium miner. Antenna placement and geographic location play a key role in finding the right Helium miner. The following steps give an idea of ​​how to set up a Helium miner:

1. Download and set up the Helium app.

The first step involves downloading the Helium app (available for both Android and iOS devices) and setting up an account. This will create a Helium wallet that users can use to store their information.

The app will generate a 12 word seed phrase for Helium wallet backup. The app will also prompt you to create a six-digit PIN that you must enter each time you log in as an added security measure.

2. Add miner Helium.

The next step is to search for the plus (+) symbol to add a Helium miner to the application, such as RAK Hotspot Miner. The selected miner must be connected to work, and a red light will confirm that it is working. Then press the button on the back of the device to connect with Bluetooth. Also, set up Wi-Fi by selecting one of the available network options in the Helium app.

3. Select an access point, check its location and adjust the antenna.

The list will now include the selected Hotspot Miner. To continue, select "Access Point". You will be prompted to add an access point. Add an access point, check the location of the access point, and set up the antenna.

The first approval is free (paid by manufacturers), users are responsible for paying transaction fees for further approvals. Click "Skip" if you still need to prepare for setting the location. When you're done, select Continue. The added hotspot can be viewed and managed from the Hotspots tab of the mobile app.

Should you mine Helium?

Given the volatility of cryptocurrencies, nothing can be certain. Helium APs perform device data transfer, prove coverage problems with other nearby APs, and send signals to create a decentralized wireless network. Miners receive data credits in the form of HNT tokens for successfully completing their tasks.

However, the reward depends on the angle of the antenna and geographic location. However, the higher the antennas are installed, the farther the radio frequency will travel. As a result, you will be able to mine more efficiently and get more HNT if you can mount your antennas higher. In hilly areas, due to a weak signal, Helium mining may not give the desired results.

**Заголовок:** How Helium Miners Power the Internet of Things (IoT) Revolution

**Підзаголовок:** Unleashing the Potential of Decentralized Wireless Networks

**Вступ:** 

Helium miners are the unsung heroes behind the Internet of Things (IoT) revolution. These specialized devices form the backbone of the Helium Network, a decentralized wireless infrastructure designed exclusively for IoT and smart devices. Leveraging wireless technology, blockchain, and cryptocurrency incentives, the Helium Network provides a low-power, long-range wireless solution for IoT devices, enabling seamless internet connectivity and communication among them.

**Блоги (Теги):** IoT, Helium Network, Wireless Technology, Blockchain, Cryptocurrency, Decentralization, IoT Connectivity

**Соціальні медіа (Гештеги):** #IoT #HeliumNetwork #WirelessTech #Blockchain #Cryptocurrency #DecentralizedNetwork #Connectivity #InternetofThings #SmartDevices #Innovation #TechRevolution

**Заключна частина (Висновок):** 

In conclusion, Helium miners serve as the linchpin of the Helium Network, ushering in an era of cost-effective and decentralized IoT connectivity. By providing coverage, validating transactions on the blockchain, and earning HNT tokens, miners are driving the growth of this groundbreaking network. As more miners join in various locations, the Helium Network continues to expand, benefiting users and businesses seeking efficient, long-range connectivity for their IoT devices. Embrace the future of IoT with Helium miners and be part of the cryptocurrency rewards revolution.

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