Helium Mining — Is It A Good Thing To Do?
Helium mining or HNT mining is fast gaining traction in the world of cryptocurrency. Since its official launch in 2019, crypto enthusiasts have been signing up as hotspot providers in their local areas.
To elaborate, the Helium Company will pay you in cryptocurrency to provide wireless coverage to potential clients in the region that you are in.
Hotspot providers are paid in Helium Network Tokens, commonly abbreviated as HNT. As of the time of writing the article, 1$HNT is worth $51.15.
If you are planning on becoming an HNT miner, you are in the right place because this article highlights some of the basic things that you need to know. Before we dive deep into the discussion, let us tackle the below question:
What Is The Helium Network?
In a nutshell, Helium is a decentralized blockchain-inspired network that allows for long-range wireless connectivity between LoRaWAN-enabled devices. With Helium, low-power smart devices can efficiently send and receive data from the internet in the form of RF signals.
As stated earlier, Helium compensates hotspot providers with its unique cryptocurrency—$HNT. It relies on LongFi technology and uses advanced algorithms that determine the rewards that an individual should get after providing wireless coverage for the general public.
The algorithms not only calculate the rewards but also ensure the network is safe for connected devices. Proof of Coverage (PoC), in particular, ensures that all hotspot providers are located in the region they are registered in.
In addition to this, the algorithms continuously probe the available hotspots to ensure that the wireless coverage being provided is geographically accurate. The Helium network system also deploys encryption functions, thus making it even safer for users. You can earn Helium Network Tokens (HNT) based on the amount of data that you are transmitting or receiving in a day. As such, the $HNT earned by Helium is not constant across the board.
How the Helium Network Works?
The Helium network uses a series of protocols that allow miners to create and transmit data between IoT devices. For starters, it features the LoRaWAN protocol, a point-to-multipoint wide area network protocol that connects devices wirelessly to the internet.
Additionally, the LoRaWAN protocol manages network gateways between connected devices. This will, in turn, allow Helium to provide users with reliable wireless coverage over a large area. Thanks to its LongFi architecture, Helium can connect multiple devices to one hotspot provider. With this feature in place, you can connect all helium-compatible devices to the available hotspots without experiencing any problems.
Helium hotspots fully rely on LongFi technology when communicating wirelessly. The good thing about this networking protocol is that it allows for continuous communication between IoT devices. As a result, the system will transmit data without dropping the signal.
Plus, Helium hotspots can run smoothly without needing your intervention. All you have to do is ensure that everything is deployed correctly. As such, you will earn passive income from Helium while doing other things.
HNT Mining and Token Reward
If you operate LoRaWAN hotspots according to the rules provided by Helium, you will earn tokens after some time. As for now, there is still no formula that can help you calculate the exact reward that you will get after providing hotspots.
However, Helium Explorer can provide you with estimates based on the number of hotspots that are in your local area. The site offers useful information that you can use when mining HNT. Being a blockchain-powered network system, Helium rewards active hotspots based on the type of work that is performed in each block. With the help of algorithms, all calculations are done automatically by the system.
Token rewards are given to hotspots that build a valid Proof of Coverage (PoC) challenge, so ensure that you are in the exact location that you claim to be in. The system can also reward hotspots that have been targeted by a given challenger within the network.
Aside from PoC challengees and challengers, tokens can be rewarded to hotspot providers based on network data transfer, beacon packet witnesses, and system security.
Always keep in mind that Helium's reward system is dependent on the miner's ability to provide stable and reliable wireless coverage to all connected devices.
Why Helium Mining Is a Good Thing to Do?
In as much as helium mining is a new trend in the cryptocurrency market, it has a lot of potential. Here are some of the reasons why you should consider mining HNT:
HNT mining is quite profitable, provided that you do everything correctly. Nonetheless, like all forms of crypto, its current market value is likely to change in the future.
The profitability of helium mining highly depends on your geographical location and the number of hotspots in that particular area. If you live in an area that has no demand for wireless coverage, there is a probability that you won't earn much and vice versa.
Also, ensure that you use high-performance hardware that can create reliable hotspots for potential clients.
Helium Miners Are Energy Efficient
Unlike regular crypto miners that consume a lot of electricity, helium miners use up energy that is equivalent to that of a standard light bulb. With that being said, you can mine $HNT extensively without incurring high utility costs. This means that you can leave the mining device plugged in 24/7, thereby maximizing your income.
The Helium Network Is Secure
Since the Helium network is protected by advanced algorithms, the devices connected to the network are less likely to be attacked. This applies to both the provider and client devices. Moreover, the included security protocols perform continuous identification and encryption functions that safeguard the network.
Which Helium Miner Should I Use?
The market has a wide range of Helium miners that you can choose from. However, not all miners are as reliable as they claim, so you need to be cautious. The Bobcat 300 is a favorite among hotspot providers due to its high efficiency. It comes with a 4dbi antenna that will provide you with wide coverage, thus boosting your $HNT earnings.
Helium Hotspot Mining: A New Way To Mine Crypto
The cryptocurrency industry is booming. It's not uncommon to hear about people who have made millions...
The Bobcat 300 and the RAK Miner Review
It can be challenging to find the right Helium miner for your needs. There are many different types of miners, each with its pros and cons...
Helium Mining — Is It A Good Thing To Do?
Helium mining or HNT mining is fast gaining traction in the world of cryptocurrency. Since its official launch in 2019, crypto enthusiasts...
The Future of Helium (HNT): Why Is Helium Mining a Great Way to Make Money?
Despite being a relatively newer blockchain that facilitates the creation of public wireless networks...