Welcome the Helium Network: A interesting look at BlockChain VPN mining
The Helium network is a relatively new concept providing public long-range wireless services for LoRaWAN enabled IoT devices. If you’re not familiar with IoT devices, it is the Internet of Things. From SCADA sensors to toaster ovens that receive and send data via the internet. IoT devices are growing and are the bedrock of smart cities. The helium network falls into the category of blockchain VPN where a blockchain is used to provide decentralized, secure internet connectivity.
The Helium network provides a network for IoT devices by people purchasing hotspots that connect IoT devices. People who contribute to the helium network are rewarded with cryptocurrency in the form of helium tokens (HNT). Helium hotspot devices can mine HNT by providing proof of coverage, providing IoT network connectivity, and being validated by consensus groups that add to the blockchain. Your earnings are dependent on your location and network coverage. For more details, please visit https://www.helium.com/mine.
But what makes this cryptocurrency so unique is that ultimately, it’s building an IoT network that’s needed. IoT devices are not going away but only increasing in number and type. But this network is not without its drawbacks. First, you have to buy specific hardware to mine. The hardware is not that expensive; however, there is a waiting list JUST to purchase the hardware. It would be beneficial if you could download the software and build your own hotspot… you can, but it has to go through an approval process and be added to the list of devices.
Additionally, if you’re in an area where there are no other miners, then you’ll have to set up multiple hotspots to show proof of coverage. HNT mining is more beneficial for people who live in heavily populated areas.
Here is a breakdown of some of the pros and cons of HNT mining:
Pros
- Low start-up cost
- Low power consumption
- The current trading price of $10.85
- Increasing demand for IoT devices
- Low bandwidth usage of personal internet line
Cons
- Hardware can be hard to get
- Because the hardware can only be bought by Helium approved vendors, there is a central control mechanism
- IoT nodes, if not secured properly, could be used for malicious cyber activities
Overall, I think HNT mining is a good prospect. IoT devices are steadily on the rise, and blockchain VPN technology is in its infancy, with growth on the horizon. Also, worst-case scenario, if HNT goes up in smoke, you still have viable hardware that’s reprogrammable to offer IoT network coverage for another provider.
