Helium Hotspot

The core hardware component is a LoRaWAN-compatible radio that uses the LongFi protocol to provide long-range, low-power wireless connectivity for IoT devices. This enables coverage over several miles, connecting sensors and devices with minimal battery usage.

• Frequency: Operates in sub-GHz ISM bands (e.g., 868 MHz in EU, 915 MHz in US).
• Range: Typically 1-10 miles, depending on environment.
• Example: A parking sensor miles away can transmit data to the internet via a nearby Hotspot.

The consensus mechanism that validates a Hotspot's location and wireless coverage integrity. Hotspots automatically perform and verify radio challenges with each other to prove they are providing legitimate coverage.

• Challenges: Hotspots are randomly selected to broadcast beacons.
• Witnessing: Nearby Hotspots receive and report these beacons.
• Rewards: Honest participation in PoC earns HNT tokens. Attempts to spoof location are penalized.

When IoT devices use the network, Hotspots route their data packets. This data transfer is paid for in Data Credits (DC), a stable-priced token pegged to the US dollar that is created by burning HNT.

• Function: Hotspots act as gateways between LoRaWAN devices and the internet.
• Burning HNT: To create DC, users permanently destroy HNT, creating deflationary pressure.
• Network Use: This mechanism funds network operations and rewards Hotspot owners for data routing.

Every Hotspot contains software that runs a light client of the Helium blockchain. It maintains a local copy of the ledger, validates transactions, and participates in network consensus via PoC.

• Light Client: Does not store the full blockchain history but verifies block headers and relevant transactions.
• Helium Consensus Group: A subset of Hotspots is elected to form a consensus group that produces new blocks, using the HoneyBadgerBFT protocol.

A critical one-time setup where the Hotspot owner cryptographically asserts the device's physical GPS coordinates on the blockchain. This declared location is essential for the Proof-of-Coverage mechanism to map the network and calculate rewards accurately.

• Hex Grid: The world is divided into hexagons (Res 4, Res 8, etc.). Rewards are influenced by Hotspot density within a hex.
• Transparency: Location data is public on the blockchain explorer.
• Consequence: Incorrect assertion leads to invalid PoC challenges and loss of rewards.

Modern Helium Hotspots can support multiple wireless protocols beyond LoRaWAN. The network has split into sub-networks (IOT for LoRaWAN and MOBILE for 5G/CBRS**), each with its own token (IOT, MOBILE) and reward structure.

• IOT Network: The original LoRaWAN network, now governed by the IOT token.
• MOBILE Network: For 5G and CBRS radio coverage, governed by the MOBILE token.
• Hotspot Models: Newer hardware like the FreedomFi Gateway or Bobcat Miner 500 can support multiple radios.

Hotspots act as gateways for IoT devices to send data over The People's Network. Data transmission is paid for using Data Credits (DC), a non-transferable token created by burning HNT.

• Uplink: Device sends data to a Hotspot.
• Downlink: Network sends data back to a device.
• Burning HNT to create DC aligns network usage with token economics, as DC are consumed and removed from circulation.

A Hotspot's earnings depend on its role and location within the network's hexagonal grid.

• Challenger: Earns for initiating PoC challenges.
• Transmitter: Earns for participating in PoC challenges.
• Witness: Earns for validating challenges from other Hotspots.
• Reward Scaling: Earnings are scaled based on Hotspot density to incentivize optimal, non-redundant coverage.

A Helium Hotspot is a specialized LoRaWAN gateway with a blockchain miner. Different models support various wireless protocols.

• LoRaWAN: Primary long-range, low-power protocol for IoT sensors.
• 5G: Newer models (e.g., FreedomFi) provide cellular coverage, earning MOBILE tokens.
• Wi-Fi: Some models (e.g., Helium Mobile) create decentralized Wi-Fi networks. Each protocol has its own sub-network and token (HNT, IOT, MOBILE) within the Helium ecosystem.

HNT is the native cryptocurrency of the Helium blockchain, minted as rewards and subject to a halving schedule.

• Max Supply: 223 million HNT.
• Halving: The rate of new HNT issuance halves approximately every two years, similar to Bitcoin's model, to control inflation.
• Burning: HNT is burned to create Data Credits for network usage, creating deflationary pressure.

A Helium Hotspot's Proof-of-Coverage (PoC) rewards are directly tied to its physical location and radio frequency (RF) performance. Key considerations include:

• Location Spoofing: Attempts to falsify GPS data or use improper antenna setups to game the network are detectable and penalized.
• Antenna Placement: Optimal height, line-of-sight, and antenna gain are critical for maximizing rewards and network health. Improper installation can lead to invalid witnesses.
• Theft/Vandalism: As physical hardware, hotspots are susceptible to theft, requiring secure mounting and potential registration tracking.

Reliable, low-latency internet connectivity is non-negotiable for hotspot operation.

• Uptime Requirements: The hotspot must maintain a stable connection to relay data packets and participate in PoC challenges. Frequent downtime reduces earnings and network reliability.
• Port Forwarding: Historically, hotspots required open ports (44158/TCP) for peer-to-peer communication. With the transition to Helium's Light Hotspot software, this requirement was largely eliminated, simplifying setup and improving security.
• Bandwidth Usage: Data transfer is typically minimal (≈1-5 GB/month) but must be consistent.

The Helium Wallet holds the HNT and Data Credits earned by the hotspot, requiring diligent key management.

• Owner vs. Payer Keys: The hotspot is configured with an owner key (controls the hotspot itself) and a payer key (pays for on-chain transaction fees). Compromise of the owner key can lead to loss of control over the hotspot.
• Secure Storage: Private keys should be stored in a hardware wallet or secure software wallet. The 12 or 24-word seed phrase must be backed up offline.
• On-Chain Transactions: Actions like asserting location, updating antennas, or transferring hotspot ownership require on-chain transactions and payment of fees in Data Credits.

Hotspots require ongoing software updates and monitoring.

• Firmware Updates: Manufacturers and the Helium community release over-the-air (OTA) updates to patch security vulnerabilities, improve performance, and implement new consensus rules (e.g., the Light Hotspot update). Automatic updates are typically enabled by default.
• Status Monitoring: Operators should use tools like the Helium Explorer or manufacturer apps to monitor hotspot status, sync status, challenge activity, and reward scales.
• Denylist Compliance: Hotspots can be added to a network denylist (denylist) for malicious activity (e.g., PoC cheating), rendering them unable to earn rewards.

Operating a radio transmitter carries legal responsibilities.

• Spectrum Regulations: Hotspots use unlicensed spectrum (e.g., 915 MHz in US, 868 MHz in EU). Operators must comply with local regulations on transmission power and frequency use.
• Placement Rights: Installing a hotspot on a balcony, roof, or external wall may require permission from landlords or property owners.
• Income Reporting: Rewards earned in HNT may be considered taxable income in many jurisdictions, requiring appropriate reporting.

Hotspot earnings are variable and subject to network dynamics.

• Reward Scaling: Earnings are adjusted by a Hex Density Reward Scale (a value from 0.0 to 1.0) based on how many other hotspots are in the same geographic hex. Oversaturation reduces individual rewards.
• HNT Price Volatility: The fiat value of rewards fluctuates with the market price of HNT.
• Hardware Longevity: The operational lifespan of the hardware (typically 3-5 years) must be weighed against the initial investment and evolving network requirements.