What is a Helium miner and how does it work?

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23 Feb 2024
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Mining helps verify the legitimacy of transactions conducted via a blockchain network, such as the Bitcoin blockchain. Miners can start mining cryptocurrencies using hardware like a central processing unit (CPU) or application-specific integrated circuits (ASICs). Alternatively, they can use smartphones powered by Android and iOS systems to mine the cryptocurrencies of their choice.
While technically possible, mining cryptocurrencies on smartphones is generally impractical and inefficient. So, how about an innovative approach to mining and network infrastructure via a decentralized wireless network? Strange as it may sound, miners can mine cryptocurrencies without relying on expensive infrastructure. Helium Network has made it possible by allowing nodes to act as hotspot devices.
This article will discuss the Helium ecosystem, Helium mining, the HNT hotspot miner and how a Helium miner works.


What is the Helium network?

Helium is a dispersed network of hotspots that offers LoRaWAN-capable Internet of Things (IoT) devices, a long-range wireless service publicly accessible by global citizens. LoRaWAN stands for Long Range Wide Area Network, and IoT devices may communicate with one another via LoRa thanks to the open LoRaWAN protocol. IoT devices are smart “gadgets” that connect to a network and exchange data, offering a more comprehensive range of connectivity than WiFi.
Helium blockchain was developed exclusively to encourage the development of real, decentralized wireless networks. Helium uses HNT (Helium) tokens as its primary cryptocurrency. However, the project migrated to the Solana blockchain in April 2023. 
This move made HNT natively compatible with projects — i.e., interoperability — within the Solana ecosystem while jacking up the utility of MOBILE and IOT tokens (other Helium tokens). MOBILE tokens aim to make creating and operating decentralized wireless networks seamless, with a particular emphasis on 5G and cellular services. By providing incentives for establishing and maintaining mobile data transmission infrastructure, MOBILE tokens allow for a decentralized method of cellular access. 
The purpose of IOT tokens is to facilitate the IoT component of the Helium network. They ensure robust and extensive coverage for low-power Internet of Things devices by encouraging and facilitating the operation of LoRaWAN hotspots and related services. The IOT tokens greatly enhance the network’s utility and reach for IoT applications.
Furthermore, Solana’s architecture makes faster transaction speeds and more efficiency possible, incorporating innovations like proof-of-history (PoH). This is advantageous for the real-time needs of IoT devices and networks.


What is a Helium miner?

Utilizing specialized hardware known as hotspots, Helium miners offer the Helium network wireless network coverage. By acquiring or constructing a WHIP-compliant hotspot and staking a token deposit corresponding to the density of other miners operating in their area, users become miners on the Helium network. WHIP stands for Wireless Hardware Interface Protocol.
In addition to the blockchain protocol, the Helium Wireless protocol called WHIP, a network of independent providers rather than a single coordinator, offers a bi-directional data transfer method between wireless devices and the internet. 
The responsibility of validating hotspots to ensure that device data reaches its intended destination and that miners receive compensation for their services lies with internet applications known as routers — aka Helium Network servers. These routers purchase encrypted device data from miners, ensuring the integrity and accuracy of data transmission within the network.
In the Helium network, hotspots are of three types, as explained below:

  • Full hotspots: These hotspots maintain a full copy of the HNT blockchain and receive rewards for all participation activities, including proof-of-coverage and data transfer.
  • Light hotspots: With the help of the Light Hotspot software, these hotspots use validators to participate as full hotspots without incurring the additional costs of keeping a local copy of the blockchain. In addition, they are rewarded for proof-of-coverage and data transfer activities.
  • Data-only hotspots: These hotspots provide data transfer capabilities for the network without participating in PoC challenges. As a result, they are rewarded for data transfer activities only.


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