Helium

Helium (HNT) cryptocurrency coin featuring the Helium network emblem, representing decentralized blockchain-based wireless communication for IoT devices.

At its core, Helium represents a pioneering blockchain network designed to facilitate wireless communication for IoT devices across the globe. Developed by Helium Inc., which was founded in 2013, the network aims to provide a decentralised connectivity solution that is both cost-effective and scalable.

Unlike traditional telecom services that rely on centralised infrastructure, Helium’s innovative model enables individuals to become network hosts by operating Hotspots — specialised hardware devices that provide coverage and transmit data for IoT devices.

In return for their contribution, hosts earn Helium tokens (HNT), incentivising the growth and density of the network. This unique model has the potential to reduce costs and barriers to entry for IoT applications, making it a significant player in the future of global connectivity.

What is Helium?

Helium is a blockchain-based network that connects IoT devices. Helium technology enables communication between the devices, while the system sends data across the network nodes. The nodes that compose the network are known as Hotspots in the Helium system.Helium (HNT) cryptocurrency concept with radio wave signals and binary code, highlighting decentralized wireless networks and blockchain technology The Hotspots provide public network coverage and rely on LoRaWAN. LoRaWAN is a media access control layer protocol that has a cloud component to which platforms like Helium can connect.

Helium is one of the biggest LoRaWAN networks with over 25,000 Hotspots that act as nodes on the network. Hotspots combine the power of LoRaWAN and a mining device based on blockchain technology.

Helium is also dubbed “The People’s Network” and aims to prepare an efficient and functional IoT for the future while addressing all the issues and inadequate solutions.

“Helium creates a unique infrastructure for an entirely new wireless economy
empowered by decentralization, hence the name “The People’s Network”.

One of the biggest problems in the IoT sector is the privacy of popular Internet of Things hubs, such as Google or Amazon. Thanks to decentralization and the blockchain technology used for building Helium, privacy soon won’t be a concern when it comes to connecting devices to the Internet of Things.

How does Helium work?

Helium aims to create a reliable, decentralized, and global network for IoT devices that relies on the community of HNT holders.The network consists of nodes, i.e. Hotspots that are run by node operators who are actually HNT holders. By hosting Hotspots and managing nodes, users are incentivized for their participation in the network’s functionality.

WiFi already has support for IoT devices. However, supporting as many different devices as possible brings up privacy concerns. Helium solves this issue using a decentralized architecture and consensus mechanism that gives the network 200 times greater coverage compared with WiFi connection with the IoT.

The consensus mechanism that the network runs on is known as Proof of Coverage and is also responsible for distributing rewards to HNT holders and node operators. Users need to purchase a mining device from the Helium website to set up Hotspots. Miners produce radio frequencies by connecting to the network, while the Proof of Coverage mechanism validates Hotspot locations.

Network participants can have one of the three roles crucial to the network’s functionality: Challenger, Transmitter, and Witness. The rewards distributed through the system also depend on the role in the Hotspot network.

Helium Uses

Helium is used to easily connect devices on the Internet of Things by using low power with efficiency and effectiveness. Helium also enables mining of HNT, as well as staking, so users can make a profit based on their network participation.

To start using Helium as Hotspot node providers, users can buy special mining devices that are available on the official Helium website and earn rewards based on their participation. The rewards are distributed in HNT. HNT can be sold in the cryptocurrency market and used to generate non-exchangeable Data Credits.

Helium creates a unique infrastructure for an entirely new wireless economy empowered by decentralization, hence the name “The People’s Network”.

The value of Helium is determined by its utility, technical capacity, the relevancy of the project, and its technology. The intrinsic value of Helium is observed mostly through the prism of its utility and technology. However, the intrinsic value and the market value of HNT often don’t coincide, mostly due to the volatility in the cryptocurrency market.

The market value of Helium can vary greatly from one moment to the next depending on a multitude of various factors. The market value of HNT is also subject to volatility in the market and at times, unpredictable trend reversals, which is why the real-life value of the project is often different from the market price of HNT.

Token Utility

The Helium token (HNT) serves multiple, essential functions within the network, making it a cornerstone of the ecosystem. Primarily, it acts as a reward for those operating Hotspots, incentivising the expansion and maintenance of the network’s coverage. This model encourages a widespread, decentralised infrastructure, crucial for the network’s goal of ubiquitous and reliable connectivity for IoT devices.

Secondly, HNT is used to generate Data Credits, which are required for sending data across the network, as well as blockchain transaction fees, including adding devices to the network. This dual-token mechanism (HNT and Data Credits) ensures that, while the network grows through the participation of Hotspot operators, the cost of using the network remains stable and predictable for developers and businesses relying on it for IoT data transmission.

Shariah Opinion

The Helium Token can be considered Shariah compliant as there are no impermissible use cases. The HNT protocol has genuine use cases.

Conclusion

Based on and subject to the foregoing information, and for the purposes of this conclusion, nothing has come to our attention that causes us to believe that HNT is in breach of Shariah* principles and rulings as adopted by the scholars conducting this research.

*Attention is drawn to the term ‘Sharia’ and ‘Sharia compliant’ and its interpretation thereof as expressed in the following link https://shariyah.net/glossary/