The Helium network is a blockchain-based distributed network that supports remote wireless hotspots. Helium is touted as one of the networks that can help implement Web3.
Compared to local ISPs, the Helium network is increasingly being adopted by digitally savvy investors and general Internet users seeking cost-effective Internet services.
Helium network development
The number of helium hotspots has grown significantly over the past year to over 632,000. However, setting up a Helium hotspot can be a challenge for many because it is costly. The average entry price to set up a Helium hotspot is $400.
The revenue generated by these hotspots can also deter some people from venturing into the process full time. One factor that affects the price is the population of the area where the hotspot is located. In densely populated areas. HNT rewards can be very low.
Helium miners who want to get the most out of their activity need to set up hotspots in areas that are less saturated, but within range of other Helium hotspots. Hotspots set up at locations too far away cannot be connected.
The amount earned by Helium miners is displayed on the Helium explorer page. The page shows that miners' rewards vary depending on various factors, but the most visible factor is the location.
Factors such as the location of hotspots can also affect miner earnings. For example, a hotspot on a high-rise building can generate more HNT rewards. This suggests that hotspots function similarly to radio signals, where transmissions may be blocked by high-rise buildings.
However, even though the rewards are not as high as those who invest in the installation would like, there are benefits to having these hotspots. Most importantly, miners don't have to put in any effort to generate rewards. This makes the hotspots provide a passive income for the miners.
According to Coingecko, at the time of writing, one Helium token is trading at $20.62. The token has risen by 330% in the past year. Miners who are bullish on the token and choose to hold on to it have the opportunity to increase their earnings if the price keeps up the upward trend.
High cost of handling a unit
As mentioned earlier, the high cost of purchasing a unit poses a barrier to entry for those who want these hotspots. However, this is not the case globally, as there are areas where miners can purchase equipment at a lower cost.
FairSpot is a US-based startup that allows miners to purchase their initial setup equipment on a rent-to-own basis. Of the rewards generated by the miners, FairSpot takes 30% and the miners will keep 70%. Ownership of the mining system will be transferred to the miner after 500 days of mining.
Those wishing to receive this funding must provide details of their location and prove their financial status. The company claims to be focused on the inclusiveness and diversity of its user base.
The Helium network is also growing significantly. The network recently announced a partnership with Techtenna. The latter is a high-density LoRaWAN network operator. Techtenna makes end-to-end IoT easy for a wide range of applications.
The press release states that Techtenna plans to deploy more than 2 million devices by 2023. These devices will be used in a variety of applications, including urbanization, environmental protection and agriculture.