What is a helium miner and how does it work?

Mining helps to verify the legitimacy of transactions made via a blockchain network such as the Bitcoin blockchain. Miners can start mining cryptocurrencies using hardware such as a central processing unit (CPU) or application specific integrated circuits (ASIC). Alternatively, they can use smartphones powered by Android and iOS systems to mine the cryptocurrencies of their choice.

But what about mining cryptocurrencies via a decentralized wireless network? It may sound strange, but miners can mine cryptocurrencies without relying on expensive infrastructure. Helium Network has made it possible by allowing nodes to act as hotspot devices.

This article will discuss the Helium ecosystem, Helium mining, HNT hotspot miner and how does a Helium miner work?

What is the Helium Network?

Helium is a distributed network of hotspots offering LoRaWAN-enabled Internet of Things (IoT) devices, a long-range wireless service publicly available to global citizens. LoRaWAN stands for Long Range Wide Area Network, and IoT devices can communicate with each other via LoRa thanks to the open LoRaWAN protocol. IoT devices are smart “gadgets” that connect to a network and exchange data, offering a wider range of connectivity options than Wi-Fi.

The Helium blockchain was developed exclusively to encourage the development of true, decentralized wireless networks. With Helium, anyone can own and manage a wireless IoT network using a unique, portable radio router known as a hotspot. Hotspots are plug-and-play wireless devices that offer superior connectivity to WiFi.

Hotspots are used by miners to build The People’s Network, a long-range wireless network that provides coverage for low-power IoT devices in exchange for Helium (HNT), the Helium blockchain’s native cryptocurrency. The Helium Community has allowed third-party manufacturers to sell a variety of Helium Hotspots.

Proof-of-coverage (PoC), a new working algorithm, is used by the Helium blockchain to verify that hotspots accurately describe their location and the wireless network coverage they generate from it. Radio waves are used during the mining process and hotspots are rewarded for acting as witnesses for peer performance, completing PoC challenges and sharing device data. The most valuable tool for viewing data related to POC is Helium Network Explorer.

But why would someone choose Helium Network over the standard Internet provider? The possible reasons include a high level of security, Helium being fully encrypted and reasonably universal internet access.

In addition, users do not have to bear fees that a mobile provider may impose, such as overage fees or the cost of additional hardware such as a SIM card. That said, users only pay for the data they used to connect their devices using the Helium console to start using the Helium network.

What is a helium miner?

Using specialized hardware known as hotspots, Helium miners provide the Helium network’s wireless network coverage. By acquiring or constructing a WHIP-compliant hotspot and making a token deposit equal to the density of other miners operating in their area, users become miners on the Helium network.

In addition to the blockchain protocol, the Helium Wireless protocol called WHIP, a network of independent providers rather than a single coordinator, offers a two-way data transfer method between wireless devices and the Internet. The task of verifying to hotspots that device data was sent to its intended location and that the miner should be compensated for its services falls to Internet applications that purchase encrypted device data from miners called routers.

Hotspots are of three types, as explained below:

• Full Hotspots: These hotspots maintain a full copy of the HNT blockchain and receive rewards for all participation activities, including proof of coverage.
• Light hotspots: Using the Light Hotspot software, these hotspots use validators to participate as full hotspots without incurring the additional costs of maintaining a local copy of the blockchain. In addition, they are rewarded for proof of coverage and data transfer activities.
• Data Only Hotspots: Just like lightweight hotspots, these hotspots use validators to obtain information on the Helium blockchain. However, they are only rewarded for data transfer activities.

How does helium extraction work?

Radio wave technology is used to perform helium extraction instead of CPUs or ASICs. In addition, blockchain technology is used to create a wireless network that is more reliable than the network offered by established traditional wireless service providers.

Helium hotspots or miners provide long-range wireless coverage using special devices called LoRaWAN transmitters. So, how to earn Helium tokens in return? By mining and expanding The People’s Network’s coverage with appropriate hotspots, miners gain HNT. The reward amount is correlated with the data a miner will transfer, i.e. more money when miners transfer more unit data.

In addition, the network automatically and randomly assigns proof-of-coverage tests to confirm the location of hotspots. Hotspots receive directives or “challenges” from validators to communicate payloads to any nearby hotspots for observation and verification to participate in the PoC. These difficulties are also referred to as “beacons”. But since they can only mine HNT for data transfer and cannot get their beacons verified, HNT hotspot miners without neighbors get paid less.

Also, each compatible device needs data credit (DC) to send data to the internet. DCs are created by burning HNT to achieve a burn and mint equilibrium (BME), which reduces the total supply of HNT. The BME model uses tokens as a proprietary form of payment, but customers who want to use a service do not pay directly to a counterparty. Instead, they burn tokens.

How to set up a Helium miner?

As mentioned in the paragraphs above, a hotspot miner, antenna (and its location), cables, smartphone and router are the prerequisites for setting up a Helium miner. But how to find the best helium miner? The placement of antennas and one’s geographic location play a key role in finding a suitable helium miner. The steps below provide an understanding of how to set up a Helium miner:

Download and set up a Helium app

The first step involves downloading a Helium app (available for both Android and iOS devices) and setting up your account. After this, a Helium wallet will be generated that users can use to store their information.

An application will generate a 12-word seed phrase to back up your Helium wallet. The app will also ask you to create a six-digit PIN that you must enter each time you log in as an extra security measure.

Add a helium miner

The next step is to find out the plus symbol (+) to add a Helium miner, such as RAK Hotspot Miner, to the app. The selected miner must be connected to work and a small red light will confirm that it is working. Then press a button on the back of the device for Bluetooth pairing. Alternatively, you can configure Wi-Fi by choosing from the available network settings in the Helium app.

Select Hotspot, confirm the location and set up the antenna

Now the list will include the selected Hotspot Miner. To continue, select “Hotspot”. A message to add a hotspot will then appear. Add Hotspot, confirm the location of the Hotspot and configure the antenna.

The first claim is free (paid by manufacturers) and users are responsible for paying the transaction fee for further claims. Press “Skip” if you still need to get ready to enter a location. If you’re ready to go, select “Continue.” The additional hotspot can be viewed and managed under the Hotspots tab in the mobile app.

Is it worth it to mine helium?

There are no sure promises in the crypto industry, given its volatility. Helium hotspots perform device data transmission, prove coverage challenges with other nearby hotspots, and transmit signals to create a decentralized wireless network. But how much do Helium miners earn in return? Miners receive computing credits in the form of HNT tokens for completing their tasks.

However, the rewards depend on the angle of the antenna and one’s geographic location. That said, the higher the antennas are set, the further the radio frequency will travel. As a result, you can mine more efficiently and get paid more HNT if you can mount the antennas higher.

On the other hand, helium extraction may not produce the desired results in a hilly area due to weak signals. Always do due diligence on the project you want to invest in to protect yourself from unbearable losses.