Do you wish to join the trend of Helium mining? A soaring number of individuals have expressed an interest in joining this decentralized wireless network. It uses low-power devices for data transmission.
Every person interested in Helium mining should invest in a Helium-compatible hotspot miner, which provides coverage in return for Helium tokens (HNT). The placement of the hotspot and its antenna strength is crucial for one’s earning potential.
Follow the mining tips below if you intend to join the trend.
An overview
Helium is a blockchain network whose aim is to create a wireless network for IoT devices, which is decentralized. These gadgets establish a connection to the internet and start data sharing. The Wi-Fi network responsible for connecting IoT devices has to be implemented successfully, which can be a challenge.
Traditional wireless has a restricted range that also applies to cellular networks having similar limitations regarding coverage. Read here about the range of a typical Wi-Fi network. Nevertheless, Helium struggles to find a solution for inadequate coverage by creating a decentralized Wi-Fi network, relying on long-range radio waves to provide large area coverage.
Individuals can build up hotspots to deliver data while acting as HNT miners, given the blockchain character of Helium. In return, miners receive Helium tokens as a reward for assisting in the expansion and sustainability of the network. People can earn thousands of dollars on a monthly basis just by investing in a Helium-compatible miner. Many are worried that the expansion of the network will reduce profitability. Nevertheless, it all depends on your location.
The basis of HNT mining
Mining HNT is performed by installing a Helium-compatible miner on the window in any room in your house. These miners are hotspots providing miles of wireless coverage for numerous devices in their surroundings, which use Helium LongFi. These hotspots use no more than 5 watts of energy, and individuals get rewarded for using them for HNT.
Once you set up your hotspot, the following step is connecting to the other compatible miners in your area and becoming a member of the network. Anyhow, participants must be aware that HNT isn’t simply earned by providing data to other devices. Profits are usually made by performing proof of stake challenges, used for validating blockchain transactions.
Proof-of-Coverage tests are automatically and randomly assigned to hotspots, which are part of the network. HNT can be earned by either passing or witnessing these tests. Individuals need to purchase a Helium Compatible Miner to start Helium mining. Also, these devices can earn HNT by transferring data to other devices within the network. The larger the amount of data, the greater the earnings.
Consensus groups consist of trusted hotspots, which are randomly chosen. These groups earn HNT through block addition to the blockchain and transaction validation. Hotspots challenge other miners in their vicinity so as to verify whether they are taking the necessary steps. The challenge involves three parties, the challenger, the challenged miner, and witnesses.
Hotspots are randomly challenged to send the required data to confirm they are running properly. Other adjacent devices are nothing but observers of the challenge and verify the provided information. Being an observer is unquestionably the most profitable role.
Let’s go back to Proof-of-Coverage (PoC). It’s a work algorithm that assists the process of network contribution validation. Hotspots can participate in Proof-of-Coverage by receiving instructions, also named challenges, to transfer payloads to any neighboring Helium-compatible miners to verify and witness. These challenges are referred to as beacons.
Nevertheless, miners that have no neighbors earn much less, as they are only capable of issuing challenges but not having their beacons verified. Challenges are paid differently, depending on the activities and performance of your device. For example, challengers earn 0.95 %, as their only task is to issue challenges. Challenges can be issues from any location.
Miners participating in Proof-of-Coverage can earn up to 5.31 % as they validate the wireless coverage of their peers. The exact earnings are determined by the frequency of participation in PoC activity. Conversely, witnesses can earn up to 21.24 %. They monitor the Proof-of-Coverage activity of other miners, and their earnings depend on the amount of activity they have witnessed.
HNT is also distributed to miners that perform network data transfer. The HNT amount is based on the data amount a device has transferred, up to 32.5 %. Finally, consensus groups earn as much as 6% shared by all group members. Members perform tasks like validating transactions and publishing blocks to the blockchain.
The Helium network develops constantly and has reached a surprising number of 240,000 hotspots as part of the network. In less than thirty days, 58,000 miners were added to it. Consequently, the network’s terrain is changing rapidly every month. Visit this site,to learn why decentralized networks are considered the future of telecoms.
Many individuals wonder whether it’s too late to start HNT mining. The answer depends on the location. Some locations are already overburdened, which leads to lower revenues. Anyhow, smaller towns are believed to have higher chances for expansion. In contrast, most of the major cities are already saturated.
How close should your hotspot be to other miners?
Individuals have better chances of earning HNT when their miner interacts with a great number of other Helium-compatible hotspots. If your location is closer than three hundred meters to another hotspot, you will compete for HNT in this particular location. The network cannot be expanded if numerous miners are in the same location.
Therefore, you should locate your hotspot at least three hundred meters from the closest device. If your location is too far, the communication with other devices will be ineffective. Ten miles in rural areas and more than one mile in areas with dense populations are considered too far.
To sum up
The expansion of this blockchain technology has been fascinating over the last year.
Although Helium mining has slightly decreased in profitability, it still offers a decent ROI!
