Helium: A decentralized connectivity platform leading the future of global IoT

Since its launch in 2019, Helium has reshaped the way we view wireless networks. Instead of relying on traditional telecom providers, Helium builds a global ecosystem where communities can independently develop and maintain connectivity infrastructure. With over 970,000 hotspots serving 192 countries, Helium has demonstrated that decentralized IoT connectivity is not only feasible but also economically advantageous. This article will explore how Helium operates, its strategic shifts, and why it is attracting attention from the crypto community and tech companies.

How It Works: Network Architecture Protected by Proof of Coverage

At the core of Helium is a unique network design based on Proof of Coverage (PoC), a novel consensus algorithm entirely different from traditional PoW or PoS. Instead of requiring participants to have high computational power, PoC uses wireless hotspots to verify the actual coverage of the network.

Each hotspot in the Helium network functions as a node providing LoRaWAN (Long Range Wide Area Network) connectivity for IoT devices. These devices, such as smart sensors, asset trackers, or actuators, can transmit data via the network without WiFi or 4G connections. The PoC mechanism confirms that hotspots are genuinely providing this service by requiring them to prove each other’s signals, creating an efficient incentive system.

This feature is especially important because it addresses a fundamental question: how to verify that a server is truly operational and providing service? With PoC, Helium creates a self-verifying system where hotspots must demonstrate their value to earn token rewards.

Strategic Shift: From Standalone Blockchain to the Solana Ecosystem

In 2023, Helium made a significant strategic move by transitioning from an independent Layer 1 blockchain to the Solana ecosystem. This decision is not a sign of failure but a calculated step to expand capabilities and leverage the larger global developer community.

The reason behind this shift is clear: as Helium grows, the number of hotspots increases exponentially, putting pressure on the original blockchain. Verifying nearly a million hotspots via PoC demands substantial processing power, and ensuring secure, reliable data transmission between devices becomes a technical challenge. Solana, with its ability to process thousands of transactions per second at low cost, offers an ideal solution.

This move opens the door for Helium to access a broader developer community. Instead of using Erlang (a less common programming language in crypto), developers can now utilize modern Solana tools. This not only accelerates development but also creates new collaboration opportunities within a dynamic ecosystem.

Diversification of Services: From IoT to 5G Networks

Helium is no longer just a LoRaWAN network. It has evolved into a multi-service platform with specialized sub-networks:

Helium IoT Network provides long-range, low-power connectivity for millions of devices. Users are charged 1 Data Credit (DC) per 24-byte data packet. Applications include air quality monitoring, asset tracking, smart farming, and home delivery systems.

Helium Mobile is a leap forward in criteria. Using CBRS (Citizens Broadband Radio Service) and WiFi technology, it offers decentralized 5G connectivity. Users pay $0.50 per gigabyte of data, and the MOBILE token rewards can be used to offset phone bills. Unlimited plans at $5 introduced in Miami directly compete with traditional mobile providers.

These sub-networks operate independently with their own rules, pricing models, and reward mechanisms. This allows Helium to optimize each service for its specific use case.

From Theory to Practice: Successful Use Cases

Helium’s real-world value is demonstrated through specific projects:

Roof Tec, a roofing specialist in Washington, uses Helium’s IoT network to remotely monitor sensors and control panels. Detecting disconnected fans helped avoid $40,000 in roofing replacement costs and prevented mold buildup risks.

Greenmetrics in Portugal revolutionized water management on golf courses. By deploying soil sensors and weather stations connected via Helium, they reduced irrigation costs by 14-28%. This not only saves money but also supports UN Sustainable Development Goals.

Owen Equipment, a US-based provider of specialized machinery, replaced unreliable 3G solutions with Helium’s LoRaWAN network. Results include a 47% reduction in operating costs, asset protection worth over $2 million, and doubled battery life.

Token Ecosystem: How Incentive Economics Work

Helium operates on a complex token platform designed to create various incentives:

HNT is Helium’s native token. Currently valued at $0.80, with a circulating supply of 186,321,438 HNT out of a max supply of 223 million. HNT is used to earn Data Credits (burned to pay data transmission fees) and participate in governance. Holders can stake HNT to earn rewards.

IOT tokens are dedicated to Helium’s IoT network, mined by LoRaWAN hotspots. They serve dual purposes: as rewards for providing service and as governance tokens for IoT sub-network decisions. Max supply is 200 billion tokens.

MOBILE tokens are similar but for the 5G network. CBRS and WiFi hotspots mine MOBILE, which is also used for mobile network governance. Max supply is 230 billion tokens, currently trading at around $0.00 (down 7.50% in 24h).

Data Credits (DC) are utility tokens pegged to USD, created by burning HNT. Users pay DC for data transmission, forming an automatic supply-demand mechanism aligned with network needs.

SOL (currently $80.98, down 4.61% in 24h) is required for transactions on the Solana blockchain that Helium runs on. Actions like token transfers, staking, NFT minting, and rewards all incur SOL fees.

Decentralized Governance with veToken Model

Helium employs a veToken (voting escrow) model inspired by Curve to create a sophisticated governance system. Unlike simple token-weighted voting, this model considers the lock-up duration of tokens.

Main Helium Network: Staking HNT yields veHNT, used to vote on network-wide issues such as token issuance and strategic decisions.

IoT Sub-Network: veIOT is used to vote on IoT network development, including new applications and service improvements.

Mobile Sub-Network: veMOBILE focuses on mobile network expansion, allowing community participation in decisions about growth and upgrades.

A key difference: staking HNT provides financial rewards, while staking IOT and MOBILE only grants voting rights. This reflects their different roles within the ecosystem.

Benefits of Moving to Solana

The transition to Solana has brought significant changes:

• Lower Costs: Average fees on Helium before were about $0.35, now around $0.00025 on Solana—over 1,400 times cheaper.

• Expanded DeFi Ecosystem: Solana’s vibrant DeFi scene (Orca, Kamino, etc.) offers new opportunities for HNT, IOT, and MOBILE token holders.

• SPL Token Standard: Helium tokens now follow the SPL standard, ensuring compatibility with exchanges, wallets, and services within Solana’s ecosystem.

• Smart Contracts: Programmability enables complex features, allowing developers to create unique decentralized applications.

• Compressed NFTs: Access points are minted as compressed Solana NFTs, reducing file size and storage costs.

Outlook and Future Prospects

Helium’s journey marks a new model for building global infrastructure. By combining blockchain, token mechanisms, and community incentives, Helium proves that decentralized connectivity is not just an ideal but an achievable reality.

With over 970,000 hotspots worldwide, 100,000+ active devices, and 8,000 CBRS 5G gateways deployed, Helium has established a substantial physical infrastructure. Successful projects from companies like Roof Tec, Greenmetrics, and Owen Equipment show that this technology addresses real business needs.

The Helium Foundation has resumed funding programs to support new projects, expanding applications from asset tracking to air quality monitoring, water measurement, and fire detection. As the community continues to grow on Solana, new opportunities will emerge.

Helium is more than just a wireless network. It represents a fundamental shift in how we build and operate global infrastructure—where communities, rather than giant corporations, are encouraged to create a connected future.