Helium Network was the first network to introduce a wireless network for mining cryptocurrencies. In this network, nodes act as hotspot devices, enabling HNT mining.
HNT Hotspot Mining has become quite popular, but its profitability is slowly declining.
Crypto mining is a lucrative way to earn passive income from the comfort of your own home. It all started with Bitcoin and gradually reached several other minable cryptos such as Dogecoin, Ethereum Classic and even Monero. The main reason behind the growth of cryptocurrency mining is its convenience and the fact that it does not require a large amount of investment capital. Over the years, a number of minable cryptos have hit the limelight for being highly profitable, but none of them have lasted long. A new blockchain-based cryptocurrency has entered the market, creating hype about helium miners.
The technology behind helium mining
Helium Network has provided a decentralized wireless infrastructure for mining HNT tokens and making a profit. Because of this, helium mining has grown significantly since its first days. An early adopter of helium mining fared better than most and set records by earning large amounts of his HNT, the reward for mining the helium network.
The project exists as a decentralized network (called Helium network) where every node is a hotspot with LoRaWAN capabilities. LoRaWAN (Long Range WAN) is one of the fastest growing Internet of Things connectivity and is basically a network protocol using long range wireless modulation technology. Both the Helium network and the HNT token are based on a proof-of-coverage algorithm that makes for a decentralized Internet of Things.
A very large LoRaWAN network, Helium works by connecting data over the Internet using physical devices that are Helium miners. In a way, the Helium network took a pragmatic approach to IoT, limited to revolutionizing housing and logistics.
Helium network: what is it?
To understand how helium miners work, it is essential to explain the helium network itself. The cryptocurrency community knows that Helium Miner is the first decentralized wireless network ever to enable his HNT mining. The Helium network consists of long-range wireless hotspots that provide access to these miners that are part of the IoT.
The Helium network is an intelligent use of wireless technology to eliminate Wi-Fi connectivity issues. This is possible because the helium network has a much wider range of connections at its disposal. In this case, there is no need for a centralized hub (mainly a router) as all devices can automatically and directly connect with other devices in their vicinity.
How does helium miner work?
Prior to the introduction of helium, cryptocurrency miners relied on expensive mining rigs that significantly reduced their ROI. However, after the emergence of the Helium network, his HNT tokens could be mined using entirely different means, including wireless devices called hotspots. A helium miner receives HNT tokens as a mining reward for providing coverage.
Since the Helium network is inherently decentralized, people can set up hotspots (helium miners). Proof-of-Coverage is a new algorithm used by the Helium blockchain to verify hotspot locations and their network coverage. Most people use the Helium Network Explorer tool to view data connected to their POC.
For helium mining, radio waves replace CPUs and ASICs. Helium hotspots use LoRaWAN transmitters to prepare long-range wireless coverage for miners. There are two ways to earn HNT as mining rewards:
- When miners transfer data to other devices available on the Helium network.
- If nearby hotspots frequently run proof-of-coverage challenges
Mining HNT requires a special device, which is a LoRaWAN transmitter. However, the most important factor in determining how much helium miners earn is their geographic location.
To be able to mine HNT profitably, you need to pay attention to the following points:
- There are three types of helium miners or wireless plug-and-play hotspots used to mine HNT: full hotspots, light hotspots, and data-only hotspots.
- You can earn HNT tokens by expanding Helium’s network coverage. This amounts to transferring more data in exchange for more rewards.
Pros and Cons of Helium Mining
Being wireless, helium miners can use radio technology and mint HNT tokens. Our proof-of-coverage model makes it easy for anyone to set up, start mining, and receive rewards. This is a truly disruptive technology that allows anyone interested to start mining his HNT crypto and generate a steady passive income. No capital investment is required other than joining a helium hotspot to start mining.
You cannot withdraw your earnings in HNT tokens directly from your Helium wallet. To do this, you will need to transfer your HNT to a compatible exchange. Additionally, total earnings depend on too many random factors, such as antenna position, height, etc.
Is it worth mining helium?
When considering whether it is worth mining helium, one must consider current and then profitability. The total number of Helium Hotspots in January 2021 was 14,000, but these numbers have increased to 900,000, but the rewards shared are the same. As new miners enter the Helium network every day, the total mining rewards will drop significantly and therefore profitability will drop significantly.
In this scenario, early adopters of the Helium network appear to be getting the most rewards from mining HNT. But all newcomers must ensure that their mining efforts are well rewarded by the network.
The future of helium mining
Helium mining doesn’t guarantee profits, but that’s the crypto industry for you. Everything in this market is highly volatile and can change in unpredictable ways. While it is true that helium miners are an innovative way to generate passive income, the project has yet to see change depending on how income varies from person to person.
How can I earn more HNT by mining if I live in a densely populated area?
The profitability of helium mining depends on network coverage and data transfer, both of which are determined by helium miners. You can tweak your installed miner to get better results.
What if I am too far from the helium hotspot?
The further away you are from a Helium hotspot, the weaker your connection will affect your HNT earnings. If the distance is too long, you will not be able to communicate with other available hotspots.