Helium developers are proposing to drop their own blockchain for Solana

by · August 31, 2022

Internet of Things (IoT) blockchain network Helium may transition to the Solana blockchain following a new HIP 70 governance proposal launched on August 30.

The Helium core developers said the need to “improve operational efficiency and scalability” was necessary to bring “significant economies of scale” to the network.

The Helium network works by users installing a Helium Hotspot to provide decentralized 5G wireless network coverage for internet users in their area. Helium uses a unique consensus mechanism – proof-of-coverage to verify network connectivity and distribute HNT tokens to Helium Hotspot providers once coverage is verified.

The proposal comes as Helium developers have stressed the need to fix a number of technical issues to improve the network’s capabilities:

During the last few months of the network, both have been challenging for network participants with much reduced Proof-of-Coverage activity due to network size and blockchain/validator load, and packet delivery issues.

The HIP 70 proposal has been put forward to improve these data transfer and network coverage capabilities, according to the Helium GitHub page.

If passed, helium-based HNT, IOT and MOBILE tokens and data credits (DCs) will also be transferred to the Solana blockchain.

The network’s HNT tokens are earned by hotspot providers, IOT tokens are earned by node operators providing the LoRaWAN network, MOBILE tokens are earned when 5G coverage is offered, and DCs are used to pay transaction fees.

Since its creation in 2013, the Helium network has operated on its own blockchain. “The Hotspot” podcast host Arman Dezfuli-Arjomandi stated in several Twitter posts that “Ethereum was too slow” and “other alternatives [at the time] was not so appealing”.

“Helium needed to build its own Blockchain when the protocol first started as ‘there was no blockchain that this could have been built on that existed at the time.’

But despite nearly a million Helium Hotspots deployed worldwide and backed by the likes of Google Ventures, the network has not come without criticism.

Related: Helium network team resolves consensus failure after 4-hour power outage

Last month, entrepreneur Liron Shapira criticized the network for its “complete lack of end-user demand” following news that the network generated just $6,500 per month from data usage revenue, despite grossing over $350 million.

The Helium network also experienced a four-hour power outage, which affected the ability of HNT token holders to exchange their tokens and prevented Helium Hotspot miners from receiving rewards.

The community reacts positively

Many members of the Helium community have reacted to HIP 70 with positive feelings, who believe that its integration into Solana will be of great benefit to developers.

Ryan Bethencourt, partner at Web3 backer Layer One Ventures told his 16,000 Twitter followers that the proposal is “huge” for Helium and Solana should the recommendation be approved.

Another Twitter user called the combination “simply mind blowing”.

The HIP 70 vote is scheduled for September 12, which will be made available to HNT token holders at heliumvote.com. Voting ends on 18 September.

The news does not seem to have positively affected the price of the HNT token, which is currently priced at $5.23, down 15.5% in the last 48 hours.