Internet of Things (IoT) refers to physical objects that are embedded with programmable sensors and related software that connect and exchange data with other devices and systems over the Internet or other communications networks. Smartwatches are an example of IoT in play. While smartwatches are a must-have for all fitness freaks, IoT has not become hugely mainstream even though this technology was all the rage a few years ago. However, IoT is far from being consigned to the dustbin of great ideas that don't work in real life (does anyone remember the Macintosh TV?). At its inception, IoT was plagued by genuine concerns which curtailed its growth. These included issues of network security, data privacy, the closed ecosystems of its ardent supporters such as Cisco. However now with blockchain-driven decentralisation, IoT is well-placed to become the ultimate comeback kid.
Decentralisation and IoT: A Marriage Made in Heaven?
First, let's unpack decentralisation. Conceptually, decentralization can be used to denote security where data is spread out over multiple nodes that reduce the likelihood of anyone point or aspect having a negative impact on the system. In technological terms, decentralization is defined as “a shift from concentrated to distributed modes of production and consumption of goods and services.” Decentralisation can be achieved through factors such as control, access, ownership, or power and they are spread across multiple actors, nodes, or points comprising a network. Blockchain, given its very nature, is well-placed to achieve this decentralisation. Blockchain-driven decentralisation in turn can help address many of the criticisms of the original IoT technology, namely network security and data privacy. For an IoT to be decentralised, it must fulfil 3 conditions: peer-to-peer messaging, distributed file sharing and autonomous device coordination
Decentralised IoT systems offer the potential of reducing infrastructure costs whilst providing a standardised peer-to-peer communication model for massive transactions (mediated by blockchains). Additionally, the increasing amount of data being processed by our smart devices could benefit from decentralisation.
How Does Helium Come Into the Picture?
Helium, which launched in 2019 is the world's largest decentralized IoT network that creates public, long-range wireless coverage for LoRaWAN-enabled IoT devices. LoRaWAN stands for low-power wide-area (LPWAN) and some common LoRaWAN IoT devices include dog tags, environmental sensors, bike trackers among others. The network consists of “hotspots” (devices) that are maintained by “miners” all around the world. These miners earn incentives (in form of HNT, the Helium blockchain's native currency) for maintaining this network of hotspots, and the hotspots communicate and coordinate to provide data services for end-users. In addition to being decentralized, Helium is also a crowdsourced IoT which is built its own public blockchain and consensus algorithm called “Proof-of-Coverage”. POC incentivizes the creation of this physically decentralized wireless IoT network. Essentially, Helium is paying individuals in cryptocurrency to operate the LoRaWAN hotspots instead of building the actual infrastructure on its own. As of July 2021, there were 55,000 Helium hotspots around the world and growing rapidly at more than 1,000 additions per day. I did check the map of my area (which is a bit out of the way and Deliveroo drivers struggle to find it) and my area was choc-a-bloc with Helium hotspots. So this crowdsourced, decentralised IoT framework is certainly catching on. In September 2021 San Jose (California) launched an infrastructure initiative to bring Helium’s “The People’s Network” to its citizens to enable Consumer IoT applications throughout the city. This makes San José the first city to officially join the Helium blockchain-based network. In late October 2021, Helium partnered with internet service giant Dish in a bid to develop a user-powered wireless network and is partnering with FreedomFi to start its own 5G coverage.
So Is the Helium Token (HNT) A Buy or Not?
Confession time. I purchased the HNT token as I do feel decentralised IoT is here to stay. The number of Helium hotspots in my own neighbourhood convinced me of this (along with a lot of other factors). As the rest of the cryptocurrency market fluctuated in November 2021, the HNT token saw a gain of more than 150% (powered in part of the dishy Dish collaboration news). HNT has a maximum supply limit of 223 million which ensures the scarcity of the currency. The concept of halving too has been introduced. A helium halving takes place every two years and halves the amount of helium that can be mined in a month. With it is cap and halving, HNT does bear more than a passing resemblance to the Bitcoin governing protocols. This combined with the problem it is addressing, governance and partnerships make HNT quite an attractive investment. Indeed a continued bull run and price increase in 2022 has been predicted. However it must be borne in mind that owing to the growing demand for Helium miners, there is a pretty long waiting list for these devices. While such popularity does confirm the growing relevance of the Helium blockchain, too many delays may act as a dampener.
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