What is Helium?

Helium (HNT) is a decentralized network powered by blockchain technology, specifically designed for Internet of Things (IoT) devices. Launched in 2019, the Helium mainnet enables low-powered wireless devices to communicate with each other and transmit data across its network of nodes. These nodes, known as Hotspots, serve as both a wireless gateway and a blockchain transaction processing device. Operators of these nodes process transactions and may receive compensation in HNT, Helium's native cryptocurrency. Helium's primary objective is to aim to enhance IoT communication, addressing the shortcomings of current infrastructure.

How does Helium work?

Helium operates through a network of Hotspots, which are a combination of a wireless gateway and a blockchain transaction processing device. Each Hotspot provides network coverage over a certain radius and processes transactions involving Helium's native token, HNT. The network operates on a proof-of-coverage consensus algorithm based on the HoneyBadger BFT protocol, which allows nodes in a network to reach consensus even when connection quality varies. Users pay transaction fees in a separate token called Data Credits, which are non-exchangeable and tied to individual users. This unique consensus mechanism, known as proof-of-coverage (PoC), aims to reward users for contributing to transaction processing and ensuring network stability.

What are the potential use cases for Helium?

Helium's primary use case is to aim to improve the communication capabilities of wireless Internet of Things (IoT) devices. Its network allows device owners and those interested in the IoT space to purchase Hotspots or build their own, providing network coverage and processing transactions involving Helium's native token, HNT. This may make it a viable option for those looking to participate in the IoT space, with potential compensation providing further outreach possibilities. The network's participants range from individuals to businesses, all contributing to the creation of a decentralized wireless infrastructure.

What is the history of Helium?

Helium was founded in 2013 by Amir Haleem, Shawn Fanning, and Sean Carey. Haleem has a background in eSports and game development, while Fanning is known for developing Napster, one of the first mainstream peer-to-peer internet services. Carey held multiple development roles prior to Helium, including at advertising optimization firm Where, which was acquired by PayPal. The Helium team now consists of members with experience in radio and hardware, manufacturing, distributed systems, peer-to-peer, and blockchain technologies. The Helium mainnet was launched in July 2019. As of a certain point in time, there were over 48 million HNT in circulation.