The entire world is aware of blockchain networks, A prime example is the Bitcoin blockchain, as the details will convey. Investors often take up the role of miners, too. Miners take recourse to specific hardware for mining digital currencies. If you want to invest in bitcoin, learn about the benefits of bitcoin in the education sector.
However, a new mining tool has arrived on the horizon. It is a decentralized wireless network. An example of such a network is the Helium Network.
An Introduction to Hotspots
Helium refers to a network of hotspots, which are dispersed across it. A hotspot is a plug-and-play, wireless device. It also refers to specialized hardware.
Hotspots may be of three types.
Full hotspots preserve a complete copy of the HNT (Helium network) blockchain. They gain rewards for participating in diverse activities, including include proof-of-coverage. Proof-of-coverage indicates a working algorithm, suitable for accurate verification of a hotspot’s location. It also suffices to acknowledge the wireless network coverage that the concerned hotspot generates.
Light hotspots appear in the form of specific software. The platform permits validators to take part in activities as complete hotspots. The validators need not pay extra charges for maintaining a local copy of the HNT blockchain. Additionally, they gain rewards from data transfer activities and proof-of-coverage.
Finally, there are the Data-only hotspots. They take recourse to validators for garnering information about the HNT blockchain. However, the rewards apply to data transfer activities alone.
The Helium Network
The Helium Network offers two bonuses. One of them is the Internet of Things (IoT) that are LoRaWAN-capable. LoRaWAN refers to Long Range Wide Area Network. The Network offers an open protocol. Therefore, IoT devices find it easy to communicate with one another.
Another bonus is the publicly accessible, long-range wireless service. It is possible to handle a wireless IoT network with the assistance of the Helium platform. The tool for managing this wireless Network is the highly unusual, portable radio router – hotspot.
The Helium Network offers several benefits. They include tremendous security, complete encryption, and universal and affordable access to the Internet. Finally, the Network charges users only for data used while connecting their devices to the Helium Network via the Helium Console.
The Helium Miner
Suppose a user desires to become a Helium miner. This individual must construct/acquire a WHIP-compliant hotspot. WHIP is the name given to the Helium Wireless protocol. It refers to a network consisting of multiple, independent providers.
Both the blockchain protocol, and the WHIP protocol provide a bi-directional method for transferring data. It works well for both the Internet, and wireless devices. Helium miners grant wireless network coverage to the Helium network via hotspots.
The potential Helium miner must also stake a token deposit. This deposit must be in alignment with the density of other Helium miners operating in the same area.
Internet applications purchase encrypted device data from a group of miners called routers. These Internet applications must connect with hotspots for conveying specific information about verification. The verification is regarding device data being transferred to the designated location. Hotspots must also acknowledge compensating Helium miners for services rendered.
The Process of Helium Mining
Helium mining works in alignment with radio wave technology. Additionally, blockchain technology is essential for setting up a wireless network. Finally, LoRaWAN transmitters suffice to offer long-range wireless coverage.
Miners use suitable hotspots to mine and expand The People’s Network coverage. This way, they gain rewards in the form of HNT tokens. The reward is in alignment with the data transferred. The more data transferred, the greater the reward.
The Helium network opts for random and automatic assigning of proof-of-coverage tests. They must identify the locations of hotspots. The tests are in the form of challenges/directives. They are titled beacons. Validators communicate payloads to closely located hotspots. The idea is to observe and verify, thereby permitting participation in proof-of-coverage. However, only those with close ‘hotspot’ neighbors earn well. Those validators, without neighbors, earn less.
Finally, every compatible device requires data credits or DCs. They are requisites for sending data to the Internet. It is necessary to burn HNT tokens, for creating a burn-and-mint-equilibrium (BME). It helps in reducing the total supply of HNT tokens. Thus, users, who are not keen to make direct payments to counterparties, prefer to burn HNT tokens and access services.