What is Helium Mining and How Helium Miner Works?

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Technological advances in cryptocurrencies have transcended the digital currency which includes Bitcoin, Ethereum and other coins and tokens to create new blockchain projects applied to everyday use. Of which, Helium (HNT) is one of the applications which is a decentralized wireless network that aims to offer connectivity to IoT devices across the world. Now people can mine helium, and earn cryptocurrency while building the Helium Network: this article will explain what helium mining is, and how helium miners generate rewards.

What is Helium Mining?

Helium mining is the process of staking Helium tokens (HNT) in order to be a part of the Helium Network which is a decentralised wireless internet of things network that intends to offer affordable, long range connectivity. Unlike many other cryptocurrencies, which used computational power, Helium utilizes Proof-of-Coverage (PoC), a consensus mechanism by which the miners receive tokens for providing wireless coverage within their local area.

Helium Network is a significant improvement towards providing the IoT devices with a way to send information over long distances with efficiency. The network is based on the wireless helium hotspots which are controlled by miners who keep those on their homes or offices. In doing so, the miners help create a global network and are remunerated with HUNT in the process.

How Does a Helium Miner Work?

Before beginning mining of the actual Helium cryptocurrency, you’ll require a Helium Hotspot – a physical device used as a wireless gateway and a miner. Here’s how the Helium mining process works:

1. Defining the Necessary Equipment of the Helium Hotspot

The first, which is required to perform a node, is to buy a Helium Hotspot. These devices are portable, easy to use miners that are connected to the internet and interact with other Hotspots to create the Helium network. As you install the Helium Hotspot, the niche starts beaming signals to create coverage for the IoT devices in the region to join the network).

2. Proof-of-Coverage (PoC)

Helium miners earn HNT by solving PoC within the network consensus algorithms. This is a method of ensuring the community gets to understand that your Hotspot has wireless coverage. The network has a simple rule of using your Hotspot to check if it is transmitting signals to other devices, and if you deliver on the coverage promised, you will earn HNT tokens.

3. Radio wave and long range coverage

Based on a recently developed technology, Helium Hotspots employ LoRaWAN (Long Range Wide Area Network) to wirelessly interface IoT devices over distances of a few miles. It enables many Helium miners to expand the coverage area and also support the development of the network. Meant for a range of Hotspots deployed in various locations, the network becomes even more optimized, which is why having and increasing the number of miners is the key to the success of Helium.

4. Earning HNT Rewards

On this model, as a Helium miner, your Hotspot earns HNT depending on the coverage you provide, the number of devices connected to your network, and the volume of data transmitted. The more activity that is driving traffic to your Hotspot, the more your income could be. As seen, from the Helium website, HNT rewards are given to miners for PoC and data transfer on the network.

Nevertheless it is revealed that rewards are also affected by Hotspots density in your community. When there are several miners, the rewards are given to participants, so it is crucial to find out which area is the best for installing the Hotspot to get the maximum amount of rewards.

The Role of Helium Network in the IoT Ecosystem

It is not just about making money through mining helium but applying that mining to further a groundbreaking network that enervates IoT devices. With growing the Helium Network, IoT solutions are promoted, including smart cities, sensors for air quality monitoring, supply chain, etc. As an IoT solution, Helium seeks to offer an opportunity to cut on the expenses of cellular networks and Wi-Fi with much better coverage and reliability.

The Helium Network is a solution to the increasing need for low energy, but long range communication for IoT gadgets. The decentralisation structure of the Helium Network also makes it more robust and more capable of expanding into areas where traditional networks cannot sustainably reach or afford to go.

The value of the Helium Token (HNT).

The digital asset inherent to the Helium Network is called HNT. This token is applied to motivate miners on the network and in executing several operations within the network too. HNT can be exchanged on different cryptocurrency platforms in order to exchange it to fiat money or different forms of cryptocurrency.
HNT, therefore, gets its value based on the requirement of coverage in the Helium Network. As more devices connect to the IoT network, they require HNT for accessing the network which may seen as a factor that could see the value of the token rise. Also, the company also has an average inflation rate because it applies the burn-and-mint concept to control the HNT supply effectively.

Why Helium Mining is Attractive

Helium mining offers several advantages over traditional cryptocurrency mining:

Low Power Consumption: Helium mining doesn’t use much computing power like Ethereum or Bitcoin, which makes its mining operation not very heavy on power consumption.
Passive Income: Ideally, once a Helium Hotspot is established, it can earn revenue by merely supplying coverage and servicing IoT gadgets.
Decentralized Network: When mining Helium, you are contributing to the creation of a worldwide, decentralized network that will enable IoT devices to be connected affordably and reliably.
Accessibility: It is easy to deploy the Helium Hotspot and you don’t have to be a technological guru in order to do it. Basically, anyone with a stable internet connection and proper location that meets the requirements can start mining helium.

Conclusion

Mining helium is an incredibly creative solution to gaining cryptocurrency while participating in the development of a distributed wireless IoT network. With the help of Helium hotspot, miners offer LoRaWAN connectivity and are paid in Helium tokens or HNT. This is because the Helium Network thrives on the increase in the number of nodes which arecreated through the concept of mining and therefore for any supporter of the crypto space and anyone willing to earn an extra income passively, this would be an excellent opportunity to join the network and help expand the IoT landscape.

Disclaimer: The content provided reflects the authors personal opinions and is influenced by current market conditions. Conduct thorough research before making any cryptocurrency investments. The author and the publication are not liable for any financial losses you may incur.