Helium's Wireless Revolution: Can 100M Devices Go On-Chain?

In the rapidly evolving world of blockchain technology, few projects are as ambitious or potentially transformative as Helium. This decentralized wireless network aims to revolutionize how we connect devices to the internet, leveraging blockchain technology to incentivize the growth of a global, community-driven network. In a recent episode of Unlayered, Noah, the head of protocol engineering at Helium Foundation, shared insights into Helium's journey, its recent migration to Solana, and the future of decentralized physical infrastructure networks (DePin).

The Promise of DePin Projects

Decentralized Physical Infrastructure Networks, or DePin projects, represent a new frontier in blockchain technology. These projects aim to build real-world infrastructure using tokenomics and community participation. Dave, one of the hosts, expressed his enthusiasm for DePin projects, stating:

"I think there's a very real chance that crypto can build out huge infrastructure projects using tokenomics. And it's one of these things where, by sort of getting the general public to help grow these projects, rather than just using a centralized entity, you can legitimately lower costs."

This approach allows for faster growth and expansion into areas that might not be economically viable for traditional, centralized companies. For instance, HiveMapper, another DePin project, is growing its global map at a rate 200 times faster than Google Maps.

Helium: The People's Network

Helium stands out as a prime example of a successful DePin project. It has built the largest LoRaWAN (Long Range Wide Area Network) for Internet of Things (IoT) devices in the world, and it was the fastest-growing wireless network ever deployed. Despite this impressive achievement, Helium's market cap is only about 0.01% of the total addressable market for wireless providers globally.

Noah explains the basic concept behind Helium:

"The simple idea here is you have some kind of signal that you want to cover the world in, whether that be like 5G or IoT. What is the best way to get that deployed? So the traditional way of deploying it, right, if you talk about like, you know, cell phones, right, they put up cell phone towers. And in order to have a cell phone tower, you have to go and lease that land from somebody and then, you know, actually go and build it. But what if you just let people do it, right?"

This approach allows for rapid expansion and coverage in areas that might be overlooked by traditional telecom companies.

Helium's Tokenomics

Helium's network is powered by a unique tokenomic model. Users can set up hotspots in their homes or businesses, providing network coverage in exchange for HNT tokens. These tokens can then be used or sold, creating a circular economy within the network.

Noah elaborates on the token system:

"You throw this IoT, which is a special kind of signal that goes like 100 miles. And it's really good for like low power sensors, things like that. And you put it on your rooftop and you mine HNT in exchange for providing the signal. And then people that are going and using the signal basically burn HNT into data credits that they can then use."

This model incentivizes network growth while also providing a mechanism for users to access the network.

The Move to Solana

One of the most significant recent developments for Helium was its migration from its own blockchain to Solana. This move was driven by the need for scalability and the desire to focus on network growth rather than blockchain maintenance.

Noah explains the rationale behind the move:

"Helium's core tenant is to, you know, cover the world and signal and, you know, be the people's network and provide internet. It's not to be the people's blockchain, right?"

The migration to Solana brings several advantages:

1. Increased transaction speed and lower costs
2. Access to Solana's robust ecosystem of tools and projects
3. Ability to focus on network growth rather than blockchain maintenance
4. Improved scalability to handle the growing network

Leveraging Solana's Ecosystem

One of the key benefits of moving to Solana is the ability to leverage its existing ecosystem. Noah highlighted several Solana projects that Helium now uses:

• Switchboard for oracle services
• Pith for pricing information
• Clockwork for scheduling regular network actions
• Squads for multi-signature management
• Realms for DAO governance

This integration with existing tools has allowed Helium to focus on its core mission while benefiting from the work of other projects in the Solana ecosystem.

The Challenges of Blockchain Development

Noah shared insights into the challenges of blockchain development, particularly on Solana. While Solana has a reputation for being difficult to develop on, Noah argues that recent improvements have made it much more accessible:

"It used to be that programming on Solana was just absolutely painful and not even because of the data model. So like learning Solana's data model itself, right now, that is what makes it harder than Solidity. Because I promise it's not that much harder with anchor, like the Rust is minimal."

He also highlighted the advantages of using Rust, a general-purpose programming language, rather than a blockchain-specific language like Solidity:

"I actually think that rust is a huge selling point for Solana and not having some specific esoteric blockchain language is actually better. Because people don't feel like they're pinning their career to it."

Helium's Multi-Network Approach

Helium isn't content with just one network. The project has expanded beyond its original IoT network to include a 5G network, with plans for potentially more networks in the future. This multi-network approach is facilitated by Helium's sub-DAO structure.

Noah explains:

"Helium is now fully sub-DAOed up, they have an IoT sub-DAO, and they have a mobile sub-DAO, and the way those tokens relate to each other is actually similar to a Strata bonding curve, it's just, it's one way."

This structure allows for the creation of multiple networks under the Helium umbrella, each with its own token and governance structure, while still benefiting from the overall Helium ecosystem.

The Future of DePin Projects

The future looks bright for DePin projects like Helium. As more projects in this space gain traction, we're likely to see increased investment and attention. Noah points out that currently, most VC money in crypto is focused on infrastructure and scaling Ethereum, with relatively little attention paid to DePin projects. However, he believes this is likely to change:

"At some point, the investment in crypto has to reflect the real world economy. It has to reflect how large wireless providers are in the real world economy, how large GPU providers are in the real world economy."

This shift could lead to an explosion in both investment and demand for DePin projects in the coming years.

AI and DePin: A Symbiotic Relationship

The rise of artificial intelligence (AI) could provide a significant tailwind for DePin projects. As AI applications become more prevalent, the demand for computing power is expected to increase dramatically. Noah cites a prediction that AI could increase the requirement for computing power by 100 to 10,000 times.

This increased demand for computing power aligns well with projects like Render, which aims to provide decentralized GPU power. As Noah puts it:

"It just makes too much sense for crypto to serve as kind of a rail to power this stuff."

Helium Mobile: A New Frontier

Helium's expansion into mobile networks represents an exciting new frontier for the project. Helium Mobile, in partnership with T-Mobile, aims to provide a hybrid network that leverages both Helium's community-driven infrastructure and traditional cellular networks.

Noah explains:

"Helium mobile is actually kind of, they have this agreement with T-Mobile where you like go and use the helium network as much as you can, which is actually, you know, one of the big benefits of it is it is cheaper to use. So the data is cheaper, so you want to use it as much as possible. And then when you fall out, you roam onto the T-Mobile network."

This approach could potentially disrupt the traditional mobile carrier model, offering users cheaper data and expanded coverage.

The Challenges of 5G Deployment

The deployment of 5G networks presents unique challenges that Helium is well-positioned to address. Traditional telecom companies struggle with the "last mile" problem in 5G deployment due to the technology's short range and susceptibility to interference from buildings.

Noah highlights this challenge:

"5G is fundamentally different than, you know, like 4G, it has a really, really short range, and it actually gets impeded by things like buildings. And so it's a really hard signal to get that last mile, which is why you basically only see 5G in major cities, because it's like really hard to coat an area in this stuff."

Helium's decentralized approach, where individual users can set up hotspots in their homes or businesses, could potentially solve this last mile problem more efficiently than traditional telecom companies.

The Power of Community-Driven Networks

One of the most powerful aspects of Helium's approach is its ability to leverage community participation. This not only allows for faster network growth but also enables coverage in areas that might be overlooked by traditional telecom companies.

Noah provides an example:

"It's also way easier to get this into, you know, lower income communities where maybe, you know, Verizon's not really going to prioritize the lower income community because they're not buying 5G capable phones. But the community themselves could invest in putting up a helium hotspot. And now they actually have 5G."

This community-driven approach has the potential to bridge the digital divide, providing high-speed internet access to underserved communities.

The Role of Oracles in Helium's Architecture

To address scalability challenges, Helium has implemented an oracle-based system for tracking rewards and network activity. This approach allows the network to function even if the underlying blockchain experiences downtime.

Noah explains:

"The way Helium doesn't now is all of the rewards kind of accumulate to an NFT, but that's happening via decentralized oracles, right? And so the oracles have an idea of which and what each NFT is owned. The blockchain doesn't have any idea of what they're own until the Oracle tells them."

This architecture provides robustness and scalability to the network, allowing it to handle millions of devices without overwhelming the blockchain.

Helium's Sub-DAO Structure

Helium's multi-network approach is facilitated by its sub-DAO structure. This allows for the creation of multiple networks under the Helium umbrella, each with its own token and governance structure.

Noah elaborates:

"We launch a sub-DAO but really be careful with using Wi-Fi because we don't, right? Like the community usually votes and decides to launch these things and literally anybody can launch one."

This structure provides flexibility for future expansion while maintaining community governance over the network's growth.

The Potential for Integration with Other Projects

Helium's open architecture and position on Solana open up possibilities for integration with other projects. Noah mentioned the potential for collaboration with projects like HiveMapper, which could use Helium's network for location verification.

He explains:

"For them, one of their problems is like, okay, I need to actually verify that you're in the location that you say that you're in, which is, you know, the thing has a GPS chip in it, I think, and it can track that. But one thing that's much harder to lie about is which helium IoT hotspots are you within range of?"

This kind of integration showcases the potential for DePin projects to create a robust ecosystem of interconnected services.

The Challenge of Gaming the System

One ongoing challenge for DePin projects like Helium is preventing users from gaming the system. As Noah points out, "This is a constant problem with DePin is like, people are just constantly trying to figure out, I mean, even like step in has this problem where like people were running around with like scooters with like 17 phones on them like trying to gain this system."

Helium's use of physical devices and its integration with real-world infrastructure provides some protection against these kinds of exploits, but it remains an ongoing area of focus for the project.

The Long-Term Vision for Helium

Noah paints an ambitious picture of Helium's long-term vision:

"I just don't think that fundamentally any other wireless network is going to be able to grow and provide coverage as well as helium. You know, especially in underdeveloped areas, like the ability for someone to just go and buy one of these things and put it up in their house is so much more powerful for providing coverage."

This vision extends beyond just providing wireless coverage. Noah hopes to see the DePin model applied to other areas of infrastructure, including ISPs and compute resources.

The Importance of Decentralization

Throughout the discussion, the importance of decentralization was a recurring theme. Noah emphasized the need to further decentralize various aspects of Helium's network, including the oracles that track network activity.

He states:

"Long term for helium, we've got, you know, a lot more plans around trying to decentralize things further. You know, with his move to Solana, and we had to move to oracles to scale. And we want to, you know, decentralize those oracles more and more."

This commitment to decentralization aligns with the broader ethos of the crypto community and could be key to Helium's long-term success and resilience.

The Future of DePin on Solana

Noah expressed excitement about the future of DePin projects on Solana, particularly with more projects like Render joining the ecosystem. He sees potential for a flourishing DePin ecosystem on Solana, similar to what happened with NFTs:

"I think it'll be kind of, you know, similar to what we saw with NFTs where a whole bunch of new tooling comes out."

This could lead to the development of new tools and standards that make it easier for future DePin projects to launch and scale on Solana.

Conclusion

Helium's ambitious project to create a decentralized wireless network represents a bold vision for the future of internet infrastructure. By leveraging blockchain technology, community participation, and innovative tokenomics, Helium is pioneering a new model for building and maintaining critical infrastructure.

The project's recent move to Solana marks a significant milestone, positioning Helium to scale more effectively and integrate with a broader ecosystem of blockchain projects. As DePin projects continue to gain traction and the demand for decentralized infrastructure grows, Helium is well-positioned to play a crucial role in shaping the future of wireless networks.

While challenges remain, particularly in areas like preventing system gaming and further decentralizing key components, the potential impact of Helium's success could be transformative. By providing a more efficient, community-driven alternative to traditional telecom infrastructure, Helium could help bridge the digital divide and enable new applications in IoT, 5G, and beyond.

As the project continues to evolve and expand, it will be fascinating to watch how Helium and other DePin projects reshape our understanding of what's possible with blockchain technology and community-driven infrastructure.

Facts + Figures

• Helium has built the largest LoRaWAN (Long Range Wide Area Network) for Internet of Things (IoT) devices in the world.
• Helium was the fastest-growing wireless network ever deployed.
• Helium's market cap is only about 0.01% of the total addressable market for wireless providers globally.
• HiveMapper, another DePin project, is growing its global map at a rate 200 times faster than Google Maps.
• The market cap of all wireless providers around the world is approximately 2.5 trillion dollars.
• Helium's IoT signal can reach up to 100 miles, making it suitable for low-power sensors.
• Helium recently migrated from its own blockchain to Solana for improved scalability and ecosystem integration.
• Helium uses a dual-token system: HNT for network incentives and Data Credits for network usage.
• Helium Mobile has partnered with T-Mobile to provide a hybrid network solution.
• 5G networks have a much shorter range than 4G and are more susceptible to interference from buildings.
• AI advancements could increase the demand for computing power by 100 to 10,000 times, potentially benefiting DePin projects like Render.
• Helium uses a sub-DAO structure to manage multiple networks (IoT, 5G) under one umbrella.
• The cost of Helium hotspots has decreased from around $400 to potentially as low as $100 in the near future.
• Helium's network processes hundreds of thousands of transactions daily for reward claims.
• Helium uses decentralized oracles to track rewards and network activity, improving scalability.

Questions Answered

What is Helium?

Helium is a decentralized wireless network that aims to provide global coverage for IoT devices and 5G. It uses blockchain technology and tokenomics to incentivize individuals to set up hotspots, creating a community-driven network infrastructure. Helium has built the largest LoRaWAN network in the world and is expanding into 5G coverage, with the goal of providing more efficient and widespread connectivity than traditional telecom companies.

Why did Helium move to Solana?

Helium moved to Solana to improve scalability and focus on network growth rather than blockchain maintenance. The move allows Helium to leverage Solana's fast and low-cost transactions, as well as its robust ecosystem of tools and projects. This transition enables Helium to handle more transactions and grow its network more efficiently, while also benefiting from Solana's existing infrastructure and development community.

How does Helium's token system work?

Helium uses a dual-token system. The primary token, HNT, is mined by hotspot operators who provide network coverage. Users of the network burn HNT to create Data Credits, which are used to pay for network usage. This creates a circular economy where network providers are incentivized to expand coverage, and users have a stable, predictable cost for accessing the network. The system is designed to become deflationary over time as network usage increases.

What are the advantages of Helium's decentralized approach to network infrastructure?

Helium's decentralized approach allows for faster network growth, especially in areas that might be overlooked by traditional telecom companies. It enables individuals to participate in building the network, potentially bridging the digital divide in underserved communities. The community-driven model also leads to more efficient capital allocation, as the network can expand based on actual demand rather than centralized planning.

How is Helium addressing the challenges of 5G deployment?

Helium is tackling 5G deployment challenges through its community-driven model. Traditional 5G networks struggle with the "last mile" problem due to the technology's short range and susceptibility to interference. Helium's approach, where individuals can set up hotspots in their homes or businesses, can potentially solve this problem more efficiently. This distributed network of small cells can provide better coverage in urban areas and bring 5G to locations that might not be economically viable for traditional telecom companies.

What is a DePin project, and why is it significant?

DePin stands for Decentralized Physical Infrastructure Network. These projects use blockchain technology and tokenomics to build real-world infrastructure through community participation. DePin projects like Helium are significant because they offer a new model for developing and maintaining critical infrastructure, potentially leading to faster deployment, lower costs, and more equitable access. They represent a convergence of blockchain technology with real-world utility, showcasing how crypto can solve tangible problems beyond financial applications.

How does Helium's sub-DAO structure work?

Helium uses a sub-DAO (Decentralized Autonomous Organization) structure to manage multiple networks under one umbrella. Each network, such as IoT and 5G, has its own sub-DAO with its own token. These sub-DAOs are connected to the main Helium network through a one-way bonding curve, allowing for specialized governance and tokenomics for each network while maintaining a connection to the broader Helium ecosystem. This structure provides flexibility for future expansion and allows for community governance of each network.

What role does AI play in the future of DePin projects like Helium?

AI is expected to significantly increase the demand for computing power, potentially by 100 to 10,000 times current levels. This surge in demand could benefit DePin projects that provide decentralized computing resources, such as Render. For Helium specifically, the increased need for connectivity to support AI applications could drive demand for its decentralized wireless networks. The symbiosis between AI and DePin projects could lead to a new wave of innovation and growth in decentralized infrastructure.

How is Helium preventing users from gaming the system?

Preventing system gaming is an ongoing challenge for DePin projects like Helium. The project uses several strategies to address this issue. First, the requirement for physical hotspot devices makes it more difficult and expensive to fake network coverage. Second, Helium's rewards system incentivizes spreading out hotspots rather than concentrating them, discouraging artificial density. Additionally, Helium is constantly refining its algorithms and introducing new verification methods to detect and prevent fraudulent activity. The project's integration with real-world infrastructure provides some inherent protection against purely digital exploits.

What is the long-term vision for Helium?

Helium's long-term vision is to become the dominant wireless network globally, especially in underdeveloped areas. The project aims to provide more efficient and widespread coverage than traditional telecom companies through its community-driven model. Beyond wireless coverage, Helium hopes to see the DePin model applied to other areas of infrastructure, including ISPs and compute resources. The ultimate goal is to create a more decentralized, efficient, and equitable system for providing essential connectivity and computing services to people around the world.