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What is HNT

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1. What is HNT ?

HNT Introduction

Helium (HNT) is a blockchain-based decentralized network aimed at providing seamless, economical connectivity for low-power Internet of Things (IoT) devices. The network was co-founded by Shawn Fanning, Sean Carey, and Amir Haleem with the goal of democratizing wireless communication.

Main Features:

  1. Decentralized Network: The Helium network operates using a peer-to-peer (P2P) framework and a unique fusion of LoRaWAN wireless technology and blockchain infrastructure.
  2. Hotspots: Hotspot devices serve as both network miners and wireless access points, providing connectivity 200 times greater than traditional Wi-Fi. These hotspots can be hosted by anyone, serving as the backbone of the network and facilitating secure, cost-effective data transmission.
  3. Proof of Coverage (PoC) Consensus Protocol: The Helium network uses a Proof of Coverage consensus protocol to reward users who verify network coverage.
  4. HNT Token: HNT is the native token of the Helium network, used to reward hotspot providers and network participants.
  5. Data Credits: Data Credits are used to transact data on the network and pay blockchain transaction fees, created by burning HNT, non-exchangeable, and tied to individual users.

HNT: Hindi Translation

Allocation Rules:

  1. Network Data Transfer: 30% of HNT tokens are allocated to reward listening devices and transfer data packets to users on the internet.
  2. Hotspot Infrastructure: 35% of HNT tokens are allocated to reward participation, witnessing, and creating Proof-of-Coverage Challenge hotspots.
  3. Helium Company and Investors: 35% of HNT tokens are allocated to reward founders, investors, and companies responsible for managing blockchain mechanisms.

Total Supply: The maximum supply of HNT tokens is 2.23 million, with no pre-mining.

2. Who founded HNT?

The founders of Helium (HNT) cryptocurrency are Amir Haleem, Shawn Fanning, and Sean Carey. They co-founded the Helium Network in 2013 and officially launched the project in July 2019.

3. Which VCs invested in HNT?

According to the information provided, the following VC firms have invested in Helium (HNT):

  1. Andreessen Horowitz (a16z): In March 2022, a16z along with Tiger Global and other institutions collectively invested in Helium.

  2. Tiger Global: In March 2022, invested in Helium along with a16z and other institutions.

  • Multicoin Capital: In June 2019, Multicoin Capital co-led Helium's Series C funding round with Union Square Ventures, raising $15 million.

  • Union Square Ventures: In June 2019, co-led Helium's Series C funding round with Multicoin Capital.

  • Ribbit Capital, 10T, Alameda Research: In August 2021, participated in Helium's $111 million token sale.

  • 4. How does HNT operate?

    The operation mechanism of the HNT (Helium) cryptocurrency is as follows:

    1. Consensus mechanism: Helium uses the Proof of Coverage (PoC) mechanism, which is a consensus algorithm different from Proof of Work (PoW). PoC rewards hotspots for deploying and maintaining network coverage to ensure security and reliability of the network.

    2. Mining process: Hotspots mine HNT by deploying and maintaining network coverage. These hotspots transmit encrypted data packets via radio waves, and the network rewards HNT based on coverage range and signal quality.

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    4. Crypto Economy: HNT is the primary token used to reward hotspots and validators. HNT can be used to create Data Credits, the second token in the Helium ecosystem used to pay for network data fees. Data Credits are non-tradable, have no speculative value, and can only be created by destroying HNT.

    5. Halving Mechanism: Helium's halving mechanism is similar to Bitcoin's, but occurs every two years. The first halving occurred on August 1, 2021, resulting in a halving of the annual HNT supply from 60 million to 30 million.

    6. Validators and Staking: The Helium network uses the HoneyBadgerBFT consensus protocol, with validators requiring a stake of 10,000 HNT to participate in network validation. Users can also delegate staking through third-party providers.

    In conclusion, the operation of the HNT cryptocurrency relies primarily on the proof of coverage mechanism, the deployment and maintenance of hotspots, and the data credit system to ensure network security and reliability.

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