What to consider before investing in Helium

Qualitative data

Vision

The Helium concept is the most ambitious we have seen in blockchain since the advent of smart contracts on the Ethernet platform. Helium represents a fundamentally new approach to deploying and managing wireless networks at scale, an approach that radically reduces the cost structure. approach that radically reduces the cost structure.

Product

Helium aims to create a global network of highly reliable, distributed IoT devices, supported by a community of HNT owners. The network is composed of nodes (hotspots), managed by node operators who are, in effect, HNT owners. By deploying the hotspots and managing the nodes, users are incentivised to participate in the operation of the network.

WiFi already supports IoT devices. However, supporting as many different devices as possible raises privacy concerns, and Helium solves this problem with a decentralised architecture and consensus-building mechanisms to provide 200 times the network coverage of WiFi for IoT.

The network operates a consensus mechanism called «proof of coverage», which is also responsible for distributing rewards between HNT owners and node operators. To create a hotspot, users must purchase mining equipment from the Helium website. The miner generates a signal by connecting to the network and locates the access point using a proof-of-coverage mechanism.

Network participants can play any of the three roles necessary for the network to function: challenger, transmitter or witness. The rewards assigned by the system also depend on their role in the hotspot network.

Team

To build the world’s first peer-to-peer wireless network, Helium has assembled a team with diverse but complementary expertise in wireless technology, hardware technology, manufacturing, distributed systems, peer-to-peer technology and blockchain technology.

Amir Halem

CEO and co-founder.

Amir is the CEO and co-founder of Helium, and prior to joining Helium he had a long career in the gaming industry as CTO of gaming startup Diversion and as part of the original Battlefield 1942 development team at DICE in Stockholm, Sweden. Outside of work, he is a former eSports world champion, co-founder of the popular eSports community esreality.com, and collects and races Japanese sports cars from the 1990s.

Mark Nadeem

Technical Director.

Mark Nadeem is a technical leader with more than 25 years of experience. His experience ranges from marketing research at Hewlett-Packard to leading technical and development teams for various products and services at Qualcomm. His focus is on design, scalability and sustainability of products, software and development teams. Besides being a typical Dutchman, he enjoys driving fast boats and spending time outdoors with his wife and dog.

Frank Mohn

Operations Director.

Frank Mohn is Helium’s COO and is responsible for sales, marketing and business ddevelopment. Prior to joining Helium, Frank had 20 years of cybersecurity experience, including CMO at Hortonworks, SVP of Marketing at Palo Alto Networks, and VP/General Manager of Security at HP.

Board of Directors and Advisors

• Bruce Armstrong: Partner, Khosla Ventures
• Eric Dresselhuis: Former vice president of sales and co-founder of Silver Spring Networks.
• Shaun Fanning: Founder, Helium, Gap, Method, Snowcap, Napster
• Greg Gotz: Founder of Invisalign
• John Hamm: Founder of Soda Rock Partners
• Vinod Khosla: Founder of Khosla Investments
• Jacqueline Roussage Krauss: Munich Re/HSB Ventures
• Aaron Levy: Founder and Managing Director of Boxes
• Alex Ross: Former VP of Engineering, twitter
• Matt Turk: Partner, Firstmark Capital
• Robert Wenig: Founder, Tealeaf; former CEO, Sap
• Andy Wheeler: Partner, GV
• U Hall: Former uber legal director

Potenciales

According to the cryptocurrency Digitalcoin’s HNT price forecast, the Helium should reach $50.13 by the end of this year. …… According to the HNT 2025 price forecast, the coin should reach $90.39. Gov Capital’s long-term forecast is even more optimistic: according to the HNT 2022 price forecast, the coin will peak at $139.86 in November.

Despite the recent price drop, algorithmic forecasting service Wallet Investor has made a bullish price prediction for the HNT cryptocurrency, calling it «an incredible long-term investment» and adding that its long-term return potential is 98.16%.

Based on an analysis of historical price trends, Wallet Investor predicts that the value of HNT will reach $68,201 in 2022 and $214,579 in 2026.

DigitalCoinPrice maintains a positive price forecast for helium coins, predicting a rise to $59.98 in 2022, increasing to $70.05 in 2025 and reaching $155.45 in 2028.

Token economy

The Helium token has been designed to meet the needs of two key aspects of the Helium blockchain ecosystem.

Hotspots y operadores de red. Hosts can benefit from HNT when deploying and maintaining network coverage. Enterprises and developers use the Helium network to connect their devices and build IoT applications. Los créditos de datos son tokens de valor útil en dólares estadounidenses derivados de HNT en una transacción de quema y se utilizan para pagar las transacciones de tráfico de datos inalámbricos en la red (excluyendo cosas como añadir puntos de acceso y descargar datos).

Economic concept of the HNT fiche

The Helium blockchain uses three different economic token concepts to ensure that the supply of HNT is sufficient for the needs of the network and is relatively scarce with a known maximum value. Let’s take a closer look.

Maximum supply

At the launch of the Genesis blockchain, the Helium network was targeting 5 million HNT per month, while after the community approved HIP20, the Helium blockchain used a two-year plan to halve the maximum supply to 2.23 million HNT.

The halving of HNT will begin with blockchain and will take place every two years according to the following schedule

Data credits and the economics of depletion

As mentioned above, Data Credits are usable tokens equivalent to the USD received from HNT in a burn transaction, and are used to pay all transaction costs on the Helium network. Data Credits always have a value of 0.00001 USD. Alternatively, you can always use 1 USD to buy 100,000 data points. However, as mentioned above, data credits are generated when the CNT is burned. Of course, the market price of CNT fluctuates.

This relationship between CNT and CC is generally referred to as a «burn and cast» balancing scheme, which is designed to ensure that the supply of CNTs matches network usage trends and that, once balanced, the number of CNTs available is constant from month to month. (The number of data points generated by burning CNTs fluctuates up or down depending on the dollar price of CNTs, as reported by the CNT cashier. Let’s look at some examples in the chain.

Example 1

Como siempre, el precio de HNT es de 0,00001 dólares.El precio actual de Oracle HNT es de 1,00 dólares. Burning a bottle of HNT generates 100,000 DCs. Example 2

A Helium network user needs 50,000 CC per month to send data to a Helium-connected mousing device. (Yes, such a thing exists and is well known). To get 50,000 CC per month, we need to consume 0.5 HNT in the following calculation.

Again, the cost of one CC is $0.00001.
The current price of Oracle HNT is $1.00.
Burning 0.5HNT will generate the 50,000 CC needed.

Net emissions

At this point, the astute reader may ask the following question.

If the supply of HNT is limited to 223,000,000 units, and the network is constantly burning HNT to generate data credits that can be traded, will there ever be a shortage of HNT?

Yes, this is where the concept of net issues comes in: HIP20 introduces the concept of net issues in addition to the maximum bid. Net issuance allows us to have enough HNT to reward consensus group members and hotspots without limitation.

The best source of information on this issue is the comprehensive analysis of HIP net emissions, but we will briefly review it here.

Con las emisiones netas, la cadena de bloques lleva la cuenta de la cantidad de HNT quemada para obtener créditos de datos en una época determinada, y la suma a la cantidad de HNT minada en esa época. For example, if 10 HNT are burned for data credits in an epoch, there will be 10 more HNT in the system in that epoch than expected. The VNT generated by net emissions does not increase the total volume in circulation and therefore does not disturb the peak supply. However, the net emissions will offset the expected deflationary effects of combustion and coining. Even if the system were to replace all of the DST burned to produce data credits, this would not result in a reduction in supply. For this reason, after implementation, we will set a limit on the amount of CNTs generated by net emissions per epoch; if the number of CNTs burned in CCs exceeds this limit, a reduction in supply will occur.

Recruitment and strategy

The Helium Network, also known as the People Network, is a decentralised wireless network that connects devices such as smart fridges, pet collars and rental scooters to the Internet of Things (IoT), enabling their geolocation. The network is protected by the Helium blockchain, which will become a proof-of-stake protocol from summer 2021.

The IoT ecosystem is growing, but real growth is hampered by the need to connect these devices to the internet via mobile and satellite technologies. IoT devices need cheap, non-broadband internet connections to send and receive data to and from the internet. Mobile and satellite communications are the traditional technologies that provide such communications, and high capacity requirements, high costs, the need for contract-based payments and low coverage are factors limiting the expansion of the ecosystem.

A helio network is a collection of access points installed by individuals around the world. It solves the problem of IoT devices using satellite and mobile technologies by providing a low-power, low-cost peer-to-peer wireless network that operates on open standards with privacy protection by default. This allows IoT devices to be geolocated and send and receive data wherever they are, or wherever they want to be. This distributed network of peer-to-peer access points uses radio frequency and consumer hardware to provide paid-for internet connectivity for IoT devices, and works on the basis of a new working algorithm called Proof of Coverage. However, Proof of Coverage is used to verify network performance, but is not a consensus mechanism. In the future, Helium will be managed by both Proof of Coverage (work) and Proof of Stake (consensus).

To ensure stable coverage, the network will incentivise the creation of dense hotspot areas. The incentive increases or decreases depending on a number of factors, such as the proximity of an access point to other access points. Access point density is used as a means to ensure that the network is secure and that different services can provide full connectivity to devices.

Since its inception in 2013, Helium has been very successful and has achieved significant success in a number of industries, including Lime Scooter, InvisiLeash pet tracking products, Salesforce’s employee IoT interface and Victorian electronic pest traps. At the time of writing, the company covers more than 65,000 hotspots, adding an average of 1,000 a day. These hotspots regularly sell out or fall behind, and Time magazine named it one of the best inventions of 2019.

Since its launch, the Helium blockchain has been secured and verified by Helium’s network operators. In addition to serving IoT devices through proof of coverage, hotspot operators will be able to create blocks, join the consensus and extend the chain using consumer devices and basic internet connectivity. However, the Helium network has become a victim of its own success, as the sheer size of the global hotspot has made it difficult to build consensus in a timely and secure manner.

When Helium moves to the sharing test, it will introduce new enterprise-grade validators with a more robust infrastructure than hotspots, such as those running on the Bison Trails platform. These new validator nodes will help build a more reliable network, speed up connections and provide a possible proxy network for future lightweight hotspots.

Hotspot miners will still receive the lion’s share of the rewards for transferring IoT device data and providing network coverage, but the activities of these miners will be verified and recorded on the blockchain by a consensus group of partially randomised helium verifiers. Becoming a verifier is an opportunity for anyone with HNT, including hotspot owners and investors, to earn additional rewards by placing their coins in the helium verifier.

As one of the most trusted names in blockchain infrastructure, we are delighted to partner with Bison Trails to enable HNT holders to run their own validators on the Helium network. Decentralised Wireless Alliance, the founding body of the Helium network. This is an important step in the development, security and implementation of the network, and we are confident that they will work with us every step of the way in the process of training network validators.

Quantitative indicators

Market performance

coming soon

Market capitalisation

Market capitalisation $3,947,784,755.82 6.54
The fully diluted market capitalisation is $8,384,015,813.34 (6.60%).

Cyclical supply

Total supply

• Helium price.
• Current offer price 105,004,096 HNT
• Total supply 223.000.000 HNT
• Maximum supply 223,000,000 HNT