T-Mobile partners with helium to help scale their 5g network
Helium has undergone large changes to their blockchain, none bigger than their transition from a monolithic blockchain to running on a Solana blockchain.
Helium is moving towards a network of networks, or DAOs with their own tokens, that will all operate within the Helium environment.
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Helium plans to offer a low-data, low-200 network for people at a lower price point in an effort to spread out their service and in turn help more customers. Their plan is starting to work as they have partnered with T-Mobile for the 5G network, Helium Mobile.
Why Helium has undergone many changes in the past few years
Helium is a blockchain company openly partnered with T-Mobile. Their mission is to give people the power of filling in the gaps in their technological knowledge, and they hope to do this by expanding into a "network of networks"
The blockchain can be used for decentralized networks and the company already has an experimental network of hotspots with about 3,500 validators. They have also set up a governance structure which oversees the Helium DAO network and will provide structure for sub-networks to come.
5G will have its own token. The new strategy is in compliance with the SEC.
The HNT token will be a crypto reserve currency for the network and can be used as an incentive for people to operate hotspots on either IoT or Mobile. The token does not offer voting rights, but can be redeemed for one other type of cryptocurrency.
The Helium network is changing the blockchain layer that they use, moving from the Helium layer 1 blockchain and proposing to switch to Solana. Many of the benefits of this will be in maximizing their scalability, community, and composition. The Helium Foundation has supplemented this change by proposing an alternative methodology "proof-of-coverage" technology.
What is tokenomics and investment perspective
Nova Labs recognizes that their plans to scale to a massive level must include the ability to have many networks. As a result, they are looking at Helium's monolithic blockchain solution rather than making changes to their own product 5g wifi.
Their funding and strong uptrend is a positive from an investment perspective. Their most recent round of funding, series D, provided $200M at a valuation of $1.2 billion. They have a market cap of about half this valuation, at around $593 million. Crypto VCs that backed the project in their early days include: Google Ventures, Andreessen Horowitz, Tiger Global, Khosla Ventures, and Union Square Ventures.
With 1 million hotspots and 5,000 5G radios across the United States, Helium is unlike any other operator.
How the value will accrue after these changes is still to be determined. The assets could accrue with the HNT tokens or with each sub-DAO's token (i.e., mobile or IoT).
Switching to a Solana enabled cell phone eliminates the need for Helium validators, which simplifies transactions and shifts the 6.85% of crypto emission to rewards. The switch also gives the impression that it might be possible for Helium Networks to integrate with a Solana Cell Phone in order to provide coverage.
- Oct 11,2022
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