Posted May 4, 2021
Helium - a Cryptocurrency that you Mine via Radio Waves
Mining has always been an important part of the cryptocurrency industry and without it the acquisition of some of the largest cryptocurrencies such as bitcoin (BTC) or ether (ETH) would be impossible. However, the mining of the mentioned cryptocurrencies requires a lot of electricity and expensive graphics cards, which have been lacking lately, on a global level.
Just because of this, Helium and its network are becoming very interesting because mining does not require expensive graphics cards or high power consumption.
Table of Contents:
What is the Helium Network
The helium network is a decentralized blockchain network designed to enable low-power wireless devices to communicate with each other. Similar to the WiFI network, only the Helium network works on the principle of peer-to-peer, which is the concept of serverless computer networking. Peer-to-peer became popular after the advent of Napster, and perhaps the most recent example of the application of the peer-to-peer concept is the BitTorrent program for illegally ‘downloading’ video content. We didn’t mention Napster by accident because one of the founders of Helium is Shawn Fanning (https://en.wikipedia.org/wiki/Shawn_Fanning) who also created Napster.
The Helium network was launched in July 2019 and is designed as a decentralized blockchain network drive that is primarily intended for IoT devices (internet of things) because it allows low-power wireless devices to communicate with each other and send data to each other via their networks of nodes, focal points or simply hotspots.
Helium Blockchain is a new blockchain built from scratch to encourage the creation of decentralized public wireless networks, and is based on a new working algorithm called Proof-of-Coverage (PoC), which rewards miners at HNT’s original Helium blockchain token for helping in building and network development. Proof-of-Coverage is a unique operation algorithm that uses radio waves to check the operation of hotspots.
How to mine Helium
The thing works in such a way that the user buys a hotspot device from Helium or some other approved manufacturer, which currently costs about $ 500, installs it in its place, and so the user becomes a participant in the network, and in addition of helping in creating a global Helium network, hotspots themselves mine Helium in the form of Helium tokens that are transferred to a Helium wallet, and then with those tokens you can do whatever you want, just like with any other cryptocurrency.
As for the hotspots, there are companies that offer them for free, but they take as much as 80 percent of your mining, so it is a better option to order the ‘original’, although, as can be read in some crypto groups, it is waiting for several months.
Whether helium mining pays off depends on several things. First of all, cost-effectiveness depends on the amount of miners in a particular area and the data that hotspot devices receive and transmit. This means that the more devices are close to each other and the more data passes through them, the higher the earnings are. On the official Helium website there is a map where it is possible to check all active devices nearby.
The price of Helium
Since July 2020, the price of the Helium Token (HNT) has increased by 770 percent, from $ 0.35 the price has risen to $ 2.70 in early February, and the current price (May 04, 2021) is $ 18.17.