Helium Plans To Switch To Solana.
The Helium network is one that leverages a decentralized global network of hotspots which are devices that double as network miners and wireless portals. The portals are used to access the Internet of Things or IoT devices and access the internet via a decentralized system. The Helium network is considered as the people’s network in that it does not involve a centralized company that controls the internet access or provision.
Currently this telecommunications network has its own blockchain but the developers have noticed faster transactions,higher uptimes, and more interoperability on the Solana blockchain. With these key reasons in place the team has considered taking things in another direction and porting the entirety of the protocol onto the Solana blockchain instead. This consideration comes after the company raised $200 million in a Series D funding round bringing the company to a valuation of 1.2 billion. The funding round was let by Tiger Global and FTX Ventures as they joined Multicoin Capital and a16z.
The Helium network awards its “miners” with tokens for using the system and aiding in creating a decentralized network. The tokens are economics and governance utility tokens with the HNT, DC, IOT, and MOBILE tokens. Currently there are more than 1 million hotspot users and the move could be seen as a great way to optimize the network. The Helium protocol can be used with the Solana Mobile System and Saga phone as well which would in turn increase its use case. The change will be dependent upon a vote.
Currently the two blockchains use different protocols as the Helium protocol uses what is known as a Proof of Coverage system to verify the location of a hotspot. The hotspot’s location is used as a verification tool and those hotspots that are not in the location the user claims lose out on tokens. The hotspots enable anyone to own a wireless network for low-power devices while providing coverage for Helium LongFi, which will net the user rewards in the form of HNT tokens.Some users have been able to use this for passive income.
The Solana blockchain works on a Proof of Stake system. The tokens are used to stake on the network to provide for quick confirmation of transactions. Staking tokens secures the network and rewards the users for staking the tokens.The tokens are delegated to validators that process transactions on the blockchain, the more tokens staked the more you are rewarded and the stronger the network is.
