- Helium works with two new tokens to incentivize users.
- The IoT company is going to be benefiting from blockchain technology.
Helium Starts Working With Tokens
Helium has just announced that it held a $15 million Series C that was co-led by Union Square Ventures and Multicoin Capital. The firm was created in order to create a low-cost data network for IoT devices. Now, the goal is to use tokens as a necessary tool for spurring adoption. This information has been released by CoinDesk in an article published a few hours ago.
During an interview with CoinDesk, the CEO and founder of Helium, Amir Haleem, said that the goal was to build a broad network for everyone to sue. In order to do so, he said that the team arrived at the conclusion that crypto was the best model for what they have been working on during these years.
At the same time, Haleem founded the firm with Shawn Fanning and Chris Bruce. The firm is currently selling its Helium Hotspot for $495. The device gets connected to users’ WiFi networks and it also works as a hub for IoT devices in the near area. Using low-power radio waves, the device provides a low-cost way to send small amounts of data to a central database.
Lime is one of the firms that will start working with this product in order to track devices. Moreover, Augulus will use it to collect agricultural data and Nestlé to track inventory in vending machines. At the moment, there are some reports that show that there are over 1 billion connected devices around the world.
Using Delegated Proof of Stake (DPoS) Consensus Algorithm
The network is going to have two different tokens one named helium and the other “data credits.” The second one can be earned after burning helium. Data credits can never leave the wallet that created them with just one exception: they need to be spent on the Helium network.
At the same time, Helium hotspots will be mining helium tokens by performing operations to secure the network. Furthermore, they can earn these coins by providing useful services to users. The startup uses also a delegated proof of stake (DPoS) in which nodes proven to be the most reliable over time verify these blocks and earn a portion of the inflation for their work. There is no current information about how long it will take for a hotspot owner to recover the investment.
There are 50,000 new tokens minted every single month, but these coins have to be burned as well. That means that the supply will continuously be contracted, however, Haleem believes that there will be a future in which the network will mature and the number of tokens remains stable.
The hotspot connects to a wireless router of a user and it sends and receives data from IoT devices in this area. The hotspot has a considerably greater range than just a WiFi node. Between 50 and 100 hotspots can cover an entire city.
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