Written by:Paras Katoch

What is Helium Crypto | Price Prediction and complete details

Decentralization comes to mind whenever we think of IoT (Internet of Things). Every blockchain project is decentralized and works toward …

Decentralization comes to mind whenever we think of IoT (Internet of Things). Every blockchain project is decentralized and works toward building autonomous systems. However, there is one problem. The network on which it operates is centralized. The current internet providers are centralized organizations governed by a single or a handful of entities.

This defeats the whole purpose of creating Web 3 applications until the inception of Helium crypto which aims to build a decentralized peer-to-peer network, independent of third party control. If ICP coin is driving the free internet revolution on the inside, Helium is providing the much needed decentralized network that can make the internet accessible from anywhere without limitation.

It has emerged as a top project that has the ability to generate passive income on a large scale. In this post, I will discuss everything you need to know about Helium Crypto, its price prediction, how it works, devices, and more. Let’s dive in and explore Helium (HNT) –

Table of Contents

  1. What is Helium Crypto Project?
  2. What is Helium Coin HNT?
  3. How does Helium work?
  4. 3.1 Helium Hotspots
    3.2 Helium Console
    3.3 Helium Blockchain
    3.3.1 Proof of Coverage
    3.3.1a Challenger
    3.3.1b Challengee
    3.3.1c Witness
    3.3.2 HoneyBadgerBFT
  5. How to Earn HNT token rewards?
  6. Network Validators
  7. How to Buy Hotspot? Becoming Helium Crypto Miner
  8. 6.1 Expected Return on Investment
  9. Helium Crypto Funding
  10. HNT Tokenomics
  11. 8.1 HNT Distribution
    8.2 Net Emissions
    8.3 Data Credits
  12. Helium Crypto Benefits
  13. 9.1 First Mover Advantage
    9.2 Borderless
    9.3 Passive Income
  14. Helium Crypto Drawbacks
  15. 10.1 Possible SEC Issue
    10.2 Stiff Competition
    10.3 Governance Issue
  16. Helium Coin Price
  17. Helium Coin Price Prediction
  18. Where to Buy Helium Crypto?
  19. Is Helium Coin worth investing?

What is Helium Crypto Project?

Helium crypto is a decentralized, peer-to-peer wireless network that enables devices to wirelessly connect to the internet by geolocating themselves without the need for a centralized service provider like Reliance Jio or AT&T.

Instead of WiFi, Helium deploys LongFi, a long-range radio frequency powered by LoRaWAN which is a point to multipoint network protocol involved in the identification of hotspots and data encryption.

Helium Mainnnet went live in July 29, 2021

Helium was founded in 2013 by Amir Haleem, Shawn Fanning & Sean Carey with a vision to recreate a peer-to-peer model of the wireless network like Napster (founded by Shawn), without falling into legal issues and high competition from traditional players. Amir is the current CEO of Helium while Shawn is part of the Advisory board.

Helium Crypto Founder

What is Helium Coin HNT?

Helium coin is the native currency of the Helium network which is earned by the hotspots for providing and validating wireless coverage and transferring device data over the network. It is mined and distributed to Hotspots owners, network validators, Helium Inc. and its early investors.

Total Supply of HNT is capped at 223,000,000

How does Helium work?

Helium is a decentralized wireless network (DWN) that provides access to the internet by utilizing multiple hotspots working in cohesion with the network routers. Therefore, it’s important to list the network devices and important protocols before going ahead with core technology –

Helium Hotspots:

Hotspots are the network devices that use the LongFi signal to connect with the other devices on the network and help transfer small packets of data between the devices in range. The LongFi signal is a low-frequency signal around 915 MHz that helps increase the hotspot range and consumes far less power when compared to the traditional routers.

The list of compatible Hotspot devices which can be used by the users to earn HNT tokens is shared on this page.

Helium Hotspot devices
Hotspots

Helium Console:

Helium console is like the cPanel of a website. It’s a device management tool that allows developers to register, authenticate and manage their devices on the network. It includes the following functions –

  • Flows: A visual representation of the key elements in the console.
  • Organization structure and permissions on the network at user level.
  • Device ID registration and authentication
  • Data Credits (expained in the post) for using the Helium network.

The console can be integrated with Google Drive and Microsoft Azure

Helium Blockchain:

It uses two consensus protocols serving different purposes –

  • Proof of Coverage
  • HoneyBadgerBFT (HBFT)

Proof of Coverage –

Proof of coverage is a new consensus algorithm by the Helium network. It checks and confirms whether or not Hotspots are located where they claim to be (proof of location) and are they honestly working in the said range. Proof of Coverage works as a rewarding system for hotspots which can be seen in the helium explorer.

Helium Explorer
Helium Explorer

The blockchain uses the proof of challenge mechanism to interrogate hotspots from time to time regarding their location and range of coverage. The challenge involves three different roles –

Challenger:

Challenger is the selected hotspot that issues the PoC challenge.

Challengee:

Challengee is the hotspot that needs to prove its location and coverage to the challenger by transmitting packets of data to the challenger and witnesses.

Witness:

The set of hotspots that are near to the challengee and reports the existence of challengee after receiving the data packets transmitted by it.

HoneyBadgerBFT

HoneyBadger BFT is a consensus mechanism that enables a set of selected nodes to achieve consensus in the presence of unreliable or faulty nodes. The selected hotspots receive encrypted transactions which are then processed by the hotspots in an orderly manner. Once done, the transactions are added to the new block in the blockchain.

The consensus relies on threshold encryption which requires the transaction to be encrypted using sharded public key in a way that the consensus group must work together to decrypt it. This means no individual hotspot is able to decrypt the transaction without the involvement of the selected group.

Helium Architecture
System Overview from Whitepaper

How to Earn HNT token rewards?

Creating a decentralized wireless network (DWN) is the first step toward a decentralized internet, the second step is encouraging enough users to run the network without worrying about the drop rate. That’s the reason behind creating HNT token which rewards the network hotspots with HNT tokens for performing the desired work.

65% of the mining rewards are distributed to the Hotspot owners and the remaining 35% goes to Helium Inc. and its early investors. The hotspots are rewards based on any of the following criteria –

  • Submitting coverage proof as a challenger
  • Successful verification as a challengee
  • Being a Witness in the proof of coverage challenge
  • Transferring device data over the network
  • Serving as consensus group member

After the first year, the distribution percentage is adjusted as follows –

AllocationPercentage Share
Challengers0.95%
Proof-of-Coverage5.02%
Witnesses20.08%
Network Data Transfer35%

The ratio of reward distribution may vary with time. Details are covered in the HNT tokenomics section of this post. Apart from it, there are network validators that earn HNT by staking.

Network Validators:

Validators are the recently introduced entity on the Helium blockchain that follows the HoneyBadgerBFT consensus by verifying transactions and adding new blocks to the blockchain.

Validators are introduced to increase the network scalability and match the demand of the network. It requires a minimum staking of 10,000 HNT tokens and running validator software to become a validator (overstaking is not permitted).

In return, validators are incentivised with HNT tokens with APR (Annual Percentage Returns) upto 360%.

Helium staking rewards
Staking APR

It is important to note if a validator is found misbehaving or not performing the assigned tasks. It will be penalized and the penalty score will decide the type of penalty the validator has to face. Checkout the complete list of penalties.

If a validator wishes to withdraw its stake from the network. It has to wait for the completion of 250,000 blocks or 5 months (approx.). During the cooldown or unlock period, the validator is not entitled to receive any reward.

Validator must be online 24X7

How to Buy Hotspot? Becoming Helium Crypto Miner

If you’re a user who wishes to generate passive income and earn HNT tokens then you must purchase any of the compatible hotspot devices listed on the website.

Helium Hotspot purchase

Each device will range around $400 -$500 and for some devices, you have to pay in stablecoin. Therefore, it is important to read all the standing instructions before going ahead with the purchase.

Bobcat hotspot
Always take note of T&C

Attach Antenna with Hotspot to increase it’s coverage area

Expected Return on Investment:

In order to get an idea of the ROI you will be making by deploying Helium compatible devices, you have to visit the Helium explorer and pinpoint the active hotspots in your region. From there you can check how much HNT is minted by those hotspots, as shown below –

Exptected ROI

Remember, a group of hotspots in a region working together will earn more than a single hotspot. For better results, purchase at least two hotspot devices and place them at a distance, 300m apart (approx.).

Helium Crypto Funding:

Helium never had an ICO or a private sale round. It raised equity funding of $145 million which in turn guarantees a lifetime supply of HNT tokens to the investors (making it security), every time it is minted on the network. The combined share of HNT mining for Helium Inc. and its investors stands at 35% of which investor takes a 50% cut, which stands at 17.5%.

Helium crypto investors
Investors

HNT Tokenomics:

HNT Distribution:

HNT is distributed to the stakeholders in the following ratios –

HNT tokenomics

30% of HNT minted in a year goes to network data transfer. 35% to the Hotspot owners and the remaining 35% to Helium Inc. and its investors. This ratio will change over time as the demand increases and more hotspots are added to the network.

In the early stage, Hotspots will earn more by providing network infrastructure and securing the network. As the network grows, Hotspots earn from transferring device data while the company and the investor’s share will reduce. The distribution ratio will stabilize after 20 years as shown below-

Helium coin allocation

All HNT tokens are mined from genesis. After the network halving on August 2021, the net HNT issuance is reduced from 5 million to 2.5 million HNT tokens per month.

Net Emissions:

To counter the drop in supply of HNT tokens over a period of time. The community proposed HIP20 i.e Helium Investment Proposal that will recycle brunt HNT tokens to reward the Hotspot owners when there’s not enough HNT available through minting.

Net Emissions

It is clear from the graph. When the HNT minting reduces, the contribution from net emissions will increase to distribute rewards to Hotspots, making the network stable and secure.

Data Credits:

Data credits are used to pay for the transaction fees on the network. Credits are also used by the devices to transmit data on the network. Data credits are created by burning HNT tokens. This is an irreversible process that makes HNT a deflationary currency.

Helium Data Credits

Once the supply drops the same process will be used to recycle a portion of data credits to reward Hotspots owners with HNT tokens. Since data credits are used to transfer data via LongFi, there’s a price attached to it.

1 Data Credit = $0.00001. It works similar to any cellular plan data which makes it non-transferable and valid for a single user only.

HNT is never used to pay for the transaction fee on the network

Helium Crypto Benefits:

First Mover Advantage:

Helium is the only Decentralized Wireless Network that runs on a blockchain-based ecosystem and has established economics that financially reward the participants with HNT tokens.

Borderless:

What’s better than living anywhere and earning HNT. Helium is built in such a way that it doesn’t require government approval to work on low range radio frequencies. That makes it easy to use and operate without worrying about law enforcement across nations.

Passive Income:

The network allows the users to earn passive income just by installing hotspots and activating them. A user can earn from 5 to 50 HNT tokens per month that account for good income without facing technical difficulties.

Helium Crypto Drawbacks:

Possible SEC Issue:

If you’re aware of Ripple XRP cryptocurrency lawsuit by SEC that considered XRP as security than a currency. Well Helium HNT token has the similar issue. It is issued as security to the investors that guarantees them share of HNT tokens minted on the network. If not now then later it may pose a threat to Helium Inc. that may affect its operations.

Stiff Competition:

There’re lot of competitors eyeing to grab the market share from Helium. Apart from traditional competitors like AT&T, Jio or Vodafone, it will go head to head with Elon Musk’s Starklink and Amazon sidewalk. Although, there’s no incentive system announced by these projects, doing that will be a cakewalk for these cash-rich projects.

Governance Issue:

Every cryptocurrency uses its native token for governance, allowing the holders the right to vote on important project proposals. Helium is on track of making HNT a governance token for its holders.

However, the problem comes with Helium Inc. and its investors holding the maximum portion of HNT tokens since they are part of the network from the time of its launch. This may turn HNT into a centralized currency when it comes to making governance decisions.

Helium Coin Price:

Please check the latest Helium coin price, shared below –

Helium Coin Price Prediction:

HNT started trading at around $0.50 per token and was quick to hit ATH of $2.00 in the next two months. Soon after the correction, it bounced back to action in the bull run of 2021, rallied at $21 per token in April 2021, before falling back to $10 mark in the subsequent market crash.

Things got better when the price rallied again, breaking the previous all-time high and hitting $57 per token in the same year. At the time of writing, the price is hovering around $30 but it won’t be there for long.

If you observe the technical charts and expand the yearly time frame, it’s very clear that the coin is all set to hit a new all-time high in the upcoming bull run. It has so much potential and demand and only few are noticing. I won’t be surprised if it 10x in value in the next bull run and soon surpasses $100 mark within a year.

HNT price prediction
HNT Price Prediction

Where to Buy Helium Crypto?

Helium crypto HNT can be bought from the leading trading exchange like Binance, Coinbase and FTX. These are centralized exchanges which means you need to complete KYC before purchasing this or any other crypto coin. Indian users can purchase HNT tokens from WazirX exchange which is a subsidiary of Binance.

Is Helium Coin worth investing?

Helium is a unique blockchain project that aims to decentralize wireless networks on a global scale. More than that, it is among the best sources of passive income requiring the least effort. Forget staking and yield farming, all you need is a hotspot device and a good antenna located in a potential location that can help you earn at least 5 HNT tokens a day.

Though the benefits are huge, the future can be challenging. Helium will face tough competition from Starlink and Amazon Sidewalk. They can come up with their own rewarding system better than Helium and may thwart its growth.

Moreover, traditional players won’t let the market share slide so easily. Companies like AT&T will either collaborate or build their own clone of the Helium network, that only time will tell. The use case is an open field for Helium. For now, the future looks bright and booming for Helium Inc.

The project has a lot of potential that can turn it into a big corporate giant. Technically the project is set to explode and the rising demand proves it. Helium is one of the projects to keep an eye on and to invest in after due diligence.

This completes my review of Helium crypto. In the next post, I will talk about Solice Crypto Metaverse and Axie Infinity. If you like the post, please share and educate your loved ones. Do remember to subscribe to my YouTube channel for more informative content, released every week.

DISCLAIMER:

Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.

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