Introduction
Helium is a decentralized wireless network that provides long-range, low-power connectivity for IoT devices and mobile communications. Launched in 2019, Helium uses a system of community-operated “Hotspots” to offer wireless coverage. The network is powered by blockchain technology, originally built on Helium’s own blockchain but migrated to Solana in 2023 to improve scalability and reduce costs.
Founders and Investors
Helium was co-founded in 2013 by Amir Haleem, Shawn Fanning (Napster), and Sean Carey. The company has raised significant investment from notable venture capital firms such as Andreessen Horowitz (a16z), GV (formerly Google Ventures), and Union Square Ventures, among others.
Network Architecture
Helium operates through a decentralized network of Hotspots, which provide wireless coverage for IoT devices by using LoRaWAN and 5G protocols. Hotspots also act as blockchain nodes, relaying data and participating in the Proof-of-Coverage (PoC) mechanism. PoC verifies the geographic location of Hotspots through radio frequency challenges.
Since migrating to Solana in April 2023, Helium has expanded significantly, with coverage now available across the U.S. and parts of Mexico, through partnerships with Telefónica. The network supports more than 462,000 Hotspots globally.
Tokenomics
Helium’s native token is HNT (Helium Network Token), with a maximum supply of 223 million. As of mid-2024, around 157 million tokens are in circulation. The network uses a Burn-and-Mint Equilibrium model: HNT is burned to create Data Credits (DC), which are used to send data over the network. One U.S. dollar converts to 100,000 DC. HNT is distributed as rewards to Hotspot operators and can also be staked to secure the network.
The HNT supply undergoes periodic halving every two years, reducing the number of tokens distributed to participants.
Use Cases and Applications
Helium has built the world’s largest public LoRaWAN network for IoT applications, which include environmental monitoring, logistics, and smart city solutions. The network is also expanding into the mobile sector with Helium Mobile, offering $20/month 5G plans, leveraging community-powered coverage to keep costs low.
Real-world applications include Skynet IoT for maritime connectivity, BrDot for livestock health monitoring, and waste management solutions in Europe.
Future Developments
Helium continues to grow, supported by its migration to Solana. Ongoing developments include the launch of new Hotspot 1.0 hardware and collaborations with telecom providers to enhance 5G coverage. The Helium Foundation continues to update its governance and reward models to incentivize wider deployment in rural areas and underserved markets.
