So I stumbling on this hotspot thing. If I could afford a hotspot miner had I bought one yesterday..... Yes indeed, the profit for now is yeah some good heaven money.
So Helium what is it what is Helium mining?. Helium blockchain is a new blockchain from ground up with a new kind of mining, not like the original mining via CPU and GPU which we're familiar with. The algorithm is new what we used to with original mining it's called Proof of Coverage (PoC).
It's based on decentralized, public wireless networks. The mining is done with these hotspot miners the rewards miners get is in $HNT their native token.
I'm not going to to go thru Helium that much, just the mining and a bit about their blockchain. I think most will be interested in this facts, if you don't know about this awesome new mining technique of course. Also this article would be to long and bit boring maybe to cover the whole aspects of Helium.
The new thing that got me really interested in this was the way of mining, it's electricity efficient, easy and the hotspots do different work. A hotspot miner in one area can do a various work against the other miner 10 miles away and the rewarded in different ways (basically, less or more).
So the groups is the rewarding system, each group is rewarded by these works. So I start the first reward type.
PoC challenger is rewarded to any hotspot that create a valid PoC challenge and submits the matching receipts to the blockchain.
PoC challengees is a reward for a hotspot that sends a POC packet this after being target by the challenger.
The Witnesses reward spread to all hotspots that fry bacon, due to high temperature it's has been challenges to much = OVERHEATED!
Nooo I know it was a bad joke promise I will be more mature in this. The witness is awarded to all hotspots witness a beacon packet bought and fried wrong! Noo noo I have to sharpen up. Its just the hotspots that witness the beacon packet that is a part of a PoC challenge.
Consensus group it's divided among 16 hotspots that is a part of outgoing consensus group. This group is responsible for great rewards, this is the group you want to be allocated in. It's a low percentages you will get in this reward group. Instead of "responsible for great rewards" it's the group that's are accountable for the blocks, so no sh#& the big rewards are here. It's in one epoch these 16 will be elected to serve as a consensus group and one epoch is in this moment 30 blocks.
So after one epoch is done, a new 16 hotspot miners will be elected for this group and so on.
The reason to the big awards in this group is that the consensus group members split all transactions fees and also split a whole 6% of all mined HNT during that one epoch of 30 blocks.
The Security reward. It's awarded to network investors, Helium who hold security tokens.
Network data transfer this is a tricky one, it's distributed to hotspots each epoch to those that route LongFi sensor data for sensors during that epoch. What we learned higher up is one epoch 30 blocks.
So this is the reward system, so hotspot miners can do a lot of different tasks and get awarded according to task done, this system is build this way to keep it so decentralized as possible. It's a cool system impressive in many ways, out side the box thinking here yeah...
The cool is you just sync you're hotspot miner to the Helium blockchain when it's fully synced, you don't need to do a anything the hotspot takes care of itself and you earn $HNT. Again so impressive.
It's minted 5,000,000 $HNT per month so if everything runs as in the best of worlds, it's just that exact number.
I won't get in to much in block time, epochs and so on what worth mention doh it if target block times slows down everyone will earn less. The halving of mining rewards also happens every two years, instead of four years like many other cryptocurrencies.
I don't know the causes of how block time will slow down, but I can think it due to external factors like hotspots disappears from the blockchain, bigger areas with hotspots get reduced/slower internet connections.
These hotspot miners are also not manufactured by Helium itself but by third-Party companies that can get approved by Helium as a official hotspot miner maker.
The approved company's manufactured hotspot miners, in no specified order what so ever.
1: Nebra Ltd.
2: RAK wireless (miners name) / CalChip (selling site).
If you would be interested in hotspot mining to mine $HNT, I would only by using these company's.
Helium has in my eyes really succeed with their blockchain and it´s a cost effective mining solution that only put about 1 dollar more to the electricity bill. Plus it's much more climate friendly. It's not as loud as the original mining with GPU:s, which makes it much more home environment friendly as well.
The project/blockchain is of course a open source.
I hope a few got more knowledgeable on the subject a few maybe even consider to start mine $HNT, but remember DYOR!
Thank you for allowing me to take your time for this reading and hope you enjoyed it!