Helium Will Affect Future of Internet and Cryptocurrency
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Helium Will Affect Future of Internet and Cryptocurrency
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FULL VIDEO TRANSCRIPT
0:01
decentralization is one of the
00:03
cornerstones of cryptocurrency but it’s
00:05
not something that any crypto project
00:08
currently has
00:09
this is because the networks we use to
00:11
interact with cryptocurrencies are owned
00:14
and operated by centralized service
00:16
providers
00:18
the solution here is simple and that’s
00:20
to create decentralized peer-to-peer
00:22
networks using cryptocurrency now today
00:25
i’m going to tell you how helium is
00:27
doing exactly that and why its
00:29
peer-to-peer 5g could make hnt one of
00:33
the most valuable cryptocurrencies
00:40
[Music]
00:42
before we begin there is something you
00:45
need to know
00:52
there is no financial advice in this
00:54
video contact a financial advisor for
00:56
help with your portfolio
00:58
if you’re new to the coin bureau my name
01:00
is guy and this helium really helps
01:02
rhyming on the go
01:04
this channel contains crypto content of
01:06
the highest quality
01:15
coins tokens news reviews exchanges and
01:17
anything crypto related that comes to me
01:20
if this is what you’re here for
01:21
subscribe to the channel and ping that
01:23
notification bell to get more you can
01:26
use the timestamps below to skip around
01:34
just remember that watching the whole
01:36
way through will help this video get
01:38
found
01:39
so now that you know my intents let me
01:41
tell you how helium could decentralize
01:44
the internet
01:47
helium
01:49
helium was founded in 2013 by sean
01:52
fanning sean carey and amir haleem if
01:55
the first name sounds familiar that’s
01:57
because shawn fanning is the co-founder
01:59
of napster the first peer-to-peer music
02:02
sharing platform which amassed over 27
02:04
million users in its short three-year
02:07
lifespan
02:08
shawn currently serves as an advisor to
02:11
helium likely because he has half a
02:13
dozen other startups on the go
02:15
sean carey is a seasoned systems
02:18
architect and he served as helium’s cto
02:20
until he stepped down in 2015.
02:23
sean’s presentation about helium at
02:25
hardwired nyc is the oldest video about
02:28
the project that i could find and it’s
02:30
worth checking out if you have the time
02:32
it’s down in the description
02:35
amir haleem is a professional gamer and
02:37
video game designer and he was once the
02:40
best quake player in the world respect
02:44
he currently sits as helium ceo and is a
02:47
die-hard cypherpunk
02:49
now according to amir helium was the
02:51
outcome of one of the many conversations
02:53
he had with napster shawn over the years
02:56
after meeting him in 2005.
02:58
they basically wanted to recreate the
03:00
peer-to-peer model of napster with
03:02
wireless networks and without the risk
03:04
of being shut down for breaking laws
03:06
like napster did with copyright
03:09
initially they were hoping to target the
03:11
telecommunications market but realized
03:13
that the red tape would make it next to
03:15
impossible and the existing players had
03:17
too much financial and political power
03:20
at the time the concept of the internet
03:22
of things or iot was becoming
03:25
increasingly popular as wireless devices
03:27
were becoming more common
03:29
iot is the buzzword of all buzzwords
03:32
these days and it basically consists of
03:34
extracting data from the real world
03:37
using sensors
03:38
these sensors include things like
03:40
laptops mobile phones parking meters and
03:43
even dog collars
03:44
amir had some friends who had tried and
03:47
failed to get iot projects off the
03:49
ground and he realized that iot
03:51
companies were failing because creating
03:53
iot infrastructure in a centralized
03:55
manner made zero economic sense
03:58
the low frequency used for iot also has
04:01
no laws licensing or regulations
04:04
attached at least in the united states
04:06
where helium was based this made iot the
04:09
perfect fit for helium’s peer-to-peer
04:11
network
04:13
the only problem is that helium had no
04:15
way to incentivize people to set up this
04:17
peer-to-peer iot network and the whole
04:20
project stalled as a result
04:22
when crypto started making headlines in
04:24
2016 however amir realized that
04:27
cryptocurrency could create the right
04:29
incentives
04:31
after being inspired by the file coin
04:33
white paper in 2017 amir rallied the
04:36
gang and they got to work
04:37
in june 2019 helium revealed its first
04:41
physical helium hotspot devices which
04:43
would power its peer-to-peer iot
04:45
infrastructure
04:47
helium’s mainnet went live one month
04:49
later creating the cryptocurrency coin
04:51
which would incentivize people to join
04:53
their new decentralized network
04:55
so how the hell does helium work
04:59
helium essentially consists of three
05:01
things helium hotspots the helium
05:04
console and the helium block chain
05:06
helium hotspots are like the routers you
05:09
use for wi-fi the difference is that
05:11
helium hotspots don’t transmit a wi-fi
05:14
signal they transmit a quote long phi
05:16
signal similar to radio
05:19
this gives helium hotspots a range of
05:21
dozens and even hundreds of kilometers
05:23
compared to the measly 50 meter range
05:25
most wi-fi routers have
05:28
this makes it easy to transmit small
05:30
packets of data to from and between any
05:33
supported wireless devices which fall
05:35
within the range of a helium hotspot the
05:38
low signal frequency used by helium
05:40
hotspots also means that they use next
05:42
to no energy and take next to no energy
05:45
from the devices they communicate with
05:47
best of all the instructions to make a
05:49
helium hotspot are open source meaning
05:51
you could make your own helium hotspot
05:53
from scratch if you really want it
05:56
as of december 2020 manufacturers can
05:59
also apply with the helium community to
06:01
mass produce hotspots of their own
06:04
and more than 13 companies have
06:06
successfully done so to date
06:08
because helium hotspots are connected to
06:10
the internet this makes it possible for
06:12
developers to request data from any
06:14
compatible devices which fall within the
06:17
range of the helium network
06:19
individuals and organizations can also
06:21
deploy their own helium-compatible
06:23
devices to do things like supply chain
06:25
management and in the case of lime track
06:28
the status of electric scooters
06:31
all this data can be accessed requested
06:33
and managed using the helium console
06:36
which can be easily integrated with
06:38
popular platforms such as google drive
06:40
and microsoft azure
06:42
fetching data from helium hotspots costs
06:45
cryptocurrency and this is where the
06:47
helium blockchain comes in
06:50
the helium blockchain was built from the
06:52
ground up and it uses a novel consensus
06:54
mechanism based on honeybadger bft which
06:57
is specially designed to support nodes
06:59
with a spotty connection
07:01
this is needed because not all helium
07:03
hotspots are always online
07:06
it’s also possible that a helium hotspot
07:08
that’s part of the consensus group could
07:10
go offline in the middle of validating a
07:12
block
07:13
in addition to honeybadger bft helium
07:16
runs a sort of secondary consensus
07:17
mechanism called proof of coverage which
07:19
is helium’s primary incentive structure
07:22
as the name suggests proof of coverage
07:24
involves checking whether a helium
07:26
hotspot is broadcasting a long phi
07:28
signal or not this check is done by a
07:31
randomly selected helium hotspot within
07:33
the range of the helium hotspot which is
07:35
being challenged
07:37
this encourages network participants to
07:39
set up their hotspots so that their
07:41
signal range overlaps with others nearby
07:43
isolated hotspots can still earn rewards
07:46
but not nearly to the same extent
07:49
if a helium hotspot passes the proof of
07:51
coverage challenge both the challenger
07:53
and the challengee earn a portion of
07:55
block rewards
07:57
hundreds if not thousands of
07:58
proof-of-coverage challenges are taking
08:00
place at any given time around the world
08:03
the large percentage of block rewards
08:05
allocated to helium hotspot operations
08:07
have made hosting one quite lucrative
08:10
now this is a big part of why there are
08:12
over 200 000 helium hotspots and
08:15
counting
08:16
now in addition to helium hotspots there
08:19
are two other sets of network
08:21
participants which earn block rewards
08:23
one of these is helium’s validators
08:26
validators are a recent addition to
08:28
helium and they were brought in because
08:29
the rapid growth of the helium network
08:32
was making it harder for hotspots to
08:34
effectively participate in the honey
08:36
badger-based consensus
08:38
helium validators must stake exactly 10
08:41
000 hnt which is nearly 200 000
08:44
at the time of shooting
08:46
staking more or less than 10 000 hnt is
08:49
not allowed and delegation is not
08:51
possible
08:53
staking rewards vary according to the
08:55
amount of hnt being staked with the
08:57
highest staking reward being 360 percent
09:00
per year
09:01
although validators can withdraw their
09:03
staking rewards every 15 minutes or so
09:06
the 10 000 hnt they staked has a
09:08
staggering five month unlock period
09:11
validators must be online at all times
09:14
and a failure to do so will result in
09:16
fewer block rewards and other penalties
09:18
though slashing is not one of them at
09:20
least not yet
09:22
now even with these high barriers to
09:24
entry and harsh conditions helium has
09:26
attracted more than 2 700 validators and
09:29
counting with staking rewards sitting
09:31
slightly south of 7 per year as a result
09:35
now the third set of network
09:37
participants that earn helium block
09:39
rewards are helium investors and helium
09:42
inc the software company behind helium
09:45
and say that is a perfect segue into
09:48
hnt’s tokenomics
09:50
hnt is the native cryptocurrency of the
09:53
helium blockchain hnt has a maximum
09:56
supply of 223 million and there was no
09:59
pre-mine and no ico
10:02
this means hnt’s supply started from
10:04
zero and in the first two years a total
10:07
of 120 million hnt were minted
10:10
helium recently saw its first halving
10:13
event which cut this annual emission
10:15
down to 30 million
10:17
hnt’s emission will continue to be cut
10:19
in half every two years until the
10:21
maximum supply is reached and at the
10:23
current pace this should take about 50
10:25
years
10:26
as i mentioned a few moments ago newly
10:29
minted hnt are divided between helium
10:31
hotspots validators helium inc and
10:34
investors
10:35
the percentage of newly minted hnt that
10:37
these participants earn will also change
10:40
over time
10:42
specifically the amount of hnt given to
10:44
the team investors and proof of coverage
10:46
rewards will decline and the lion’s
10:49
share will be given to helium hotspots
10:51
handling data requests from developers
10:54
now even though there was no ico for hnt
10:57
helium inc did sell security tokens to
11:00
investors
11:01
hnt rewards earmarked for helium inc and
11:04
investors are allocated according to how
11:06
many security tokens they hold so as a
11:08
simple example if helium inc holds 50 of
11:11
helium’s security tokens they will get
11:13
17.5 of all newly minted hnt
11:17
that’s half of the 35
11:19
that’s currently allocated to that
11:21
portion of the block reward pie
11:23
this clever architecture allowed helium
11:25
to raise over 145 million dollars from
11:29
token sales without actually conducting
11:31
any icos
11:33
those investors just purchased the
11:34
security tokens that guarantee them a
11:37
portion of future block rewards
11:39
now if that wasn’t crazy enough hnt
11:42
technically isn’t used to pay for
11:43
network fees
11:45
all transaction fees on helium are paid
11:47
in data credits including fetching data
11:50
from devices connected to helium
11:52
hotspots
11:53
data credits are created by burning hnt
11:57
and data credits are pegged to the us
11:59
dollar at a ratio of one hundred
12:01
thousand to one
12:02
so this means that burning one dollar in
12:05
hnt will create 100 000 data credits
12:09
data credits are non-transferable and
12:11
cannot be converted back to hnt
12:14
this makes hnt a deflationary
12:16
cryptocurrency
12:18
to ensure helium networks participants
12:20
are sufficiently incentivized after the
12:22
last hnt coin is mined the helium
12:24
community recently passed a proposal to
12:27
enable net emissions now net emissions
12:30
essentially involved taking a small
12:32
portion of data credits and converting
12:34
them back into hnt
12:36
net emissions are currently one percent
12:38
per year and will rise when demand for
12:40
data credits is low and fall when demand
12:43
for data credits is high
12:45
now the real question is what effect
12:47
hnt’s elaborate tokenomics will have on
12:50
its price and i reckon the answer here
12:53
is quite clear
12:54
hnt has been in a sustained uptrend for
12:57
over a year and this uptrend accelerated
13:00
in april when the helium community voted
13:02
to introduce support for 5g
13:04
infrastructure
13:06
after a few quiet months hnt spiked
13:09
again in august and this was for many
13:11
reasons
13:12
first there was the hnt halving which
13:14
took place on august the 6th
13:16
on august 10th helium announced that
13:19
andreas and horobits had led a massive
13:21
vc funding round for hnt which totaled
13:24
over 111 million dollars and featured
13:27
other big names such as alameda research
13:30
on august 31st freedomfi announced that
13:33
it would be the first to manufacture
13:35
helium hotspots with 5g support
13:38
the first 5g helium hotspot was
13:40
delivered just a few days ago and
13:42
freedom phi hopes to have 20 000 5g
13:45
enabled helium hotspots set up by the
13:47
end of the year
13:49
given that helium has onboarded over 150
13:52
000 hotspots for its iot network in less
13:55
than a year we will see at least the
13:57
same amount of exponential growth for
13:59
its 5g network and probably much more
14:03
this is because the demand for 5g
14:05
couldn’t be higher and there’s only one
14:07
reason why 5g hasn’t reached mass
14:09
adoption yet
14:10
as highlighted by helium founder amir
14:12
haleem centralized 5g infrastructure is
14:15
running into the same bottlenecks as iot
14:18
infrastructure
14:19
now for those who don’t know 5g signal
14:22
has a very short range and this signal
14:24
is easily disrupted something as minimal
14:27
as too much humidity in a room could be
14:29
enough to cut a 5g connection
14:32
this means 5g towers need to be
14:34
installed on almost every single home
14:37
for 5g to be usable and the cost of
14:39
setting up this kind of infrastructure
14:41
in a centralized manner is too damn high
14:45
that’s why helium’s goal is to
14:47
incentivize people to run their own 5g
14:49
towers and earn passive income for
14:52
providing that service
14:54
now because the currency used to pay for
14:56
this 5g connection will be hnt derived
14:59
data credits this will increase the
15:01
demand for hnt
15:03
if legacy internet service providers
15:05
begin leveraging helium as part of their
15:07
own 5g infrastructure as emea recently
15:10
hinted this would turn the hnt demand
15:13
dial up to 11.
15:15
this would send hnt well past the moon
15:17
and into the next galaxy
15:19
now with a market cap of under 2 billion
15:21
hnt could easily 10x within the next
15:24
year assuming the crypto market
15:26
continues to rally
15:28
besides 5g helium has a whole host of
15:31
other milestones on the horizon these
15:33
can be found on the helium github as
15:35
helium improvement proposals or hips
15:39
there are about a dozen hips currently
15:41
being discussed and a few are worth
15:43
pointing out
15:44
the first is hip 24 which wants helium
15:47
to introduce block reward splitting this
15:49
would make it possible for helium
15:51
hotspots to send their hnt rewards to
15:53
multiple wallets instead of one
15:56
the second hip worth pointing out is hip
15:58
31 which wants helium to introduce
16:01
on-chain governance via hnt token
16:03
locking the proposed governance
16:05
mechanism is quite robust and i
16:07
recommend giving it a read if you have
16:09
time link will be in the description
16:12
the third hip worth pointing out is hip
16:14
33 which wants helium to optimize hot
16:17
spot rewards in certain regions
16:19
something which is arguably required
16:21
given the different rules regulations
16:23
and network resources around the world
16:26
the fourth hip worth pointing out is hip
16:28
34 which wants helium to mask validator
16:31
locations on the grounds that publicly
16:33
broadcasting their ip could pose a
16:35
security risk and i reckon that’s a
16:37
reasonable concern
16:39
the fifth hip worth noting is hip 37
16:41
which wants helium to adjust block
16:43
rewards to sufficiently incentivize and
16:45
compensate hotspots running other
16:47
networks including 5g the sixth hit
16:51
worth pointing out is hip 38 which wants
16:53
helium to allow validators to become
16:55
oracles for the hnt data credit
16:57
conversion rate something which is
16:59
currently done by just nine unknown
17:01
oracles
17:03
the seventh notable hip is hip 39 which
17:06
wants helium to redenominate hnt by a
17:08
factor of 1000 meaning one hnt would be
17:12
split into 1000 new hnt
17:15
the author of the hip admits that
17:16
redenomination has a habit of increasing
17:19
price so that’s definitely something to
17:21
keep in mind
17:22
now one hip that seems to be missing is
17:24
a scaling solution for the helium block
17:26
chain which will be required for it to
17:29
sustain its exponential growth and this
17:32
conveniently brings me to the concerns i
17:34
have about helium
17:36
as incredible as helium is it has no
17:38
shortage of competition from legacy
17:40
network providers
17:42
the elephant in the room here is
17:44
spacex’s starlink project which is
17:46
looking to bring the internet to the
17:48
entire planet via satellite
17:51
to be fair starlink cannot provide the
17:53
5g speeds that helium is hoping to host
17:55
and it’s possible if not likely that the
17:57
two could co-exist
17:59
the question is whether enough people
18:01
would care to use 5g if a functional
18:03
connection is available without having
18:05
to use a complicated cryptocurrency
18:08
in terms of iot amazon seems to be dead
18:11
set on becoming the king of the iot
18:13
industry with the alexa devices and
18:15
something tells me that it took a few
18:17
pages from helium’s playbook
18:19
i suspect this because amazon announced
18:22
amazon sidewalk in october 2019 just a
18:25
few months after helium’s main net went
18:27
live
18:28
helium’s code is open source which would
18:30
make it easy to copy
18:32
and helium must have been on amazon’s
18:34
radar too because google ventures was
18:36
one of helium’s early investors
18:39
helium founder amir haleem seems to
18:41
suspect the same thing because in 2017
18:43
he was saying open source all the way
18:46
quote almost entirely open source is
18:49
what helium’s documentation says today
18:52
keeping secrets close to your chest is
18:54
best when you’re trying to topple
18:56
trillion dollar tech giants but it could
18:58
also create some serious issues for
19:00
helium down the line
19:02
one thing that comes to mind is the
19:03
classification of hnt as a security by
19:07
us regulators which is almost certainly
19:09
the case
19:10
heck helium literally has security
19:12
tokens that are held by helium inc and
19:15
its investors
19:16
this could mean that hnt won’t be
19:19
listing on any u.s exchanges anytime
19:21
soon and that’s where most traders and
19:24
investors are located including the ones
19:26
that invested into helium inc
19:29
the solution is for helium to become
19:31
sufficiently decentralized and that’s
19:33
probably why amir has been very hesitant
19:36
to answer any questions related to a
19:38
roadmap it would send a signal to
19:40
regulators that helium inc has retained
19:43
control of helium
19:45
this does seem to be the case though and
19:47
it’s easy to understand why
19:49
helium has been a massive success and
19:51
helium inc could someday become one of
19:54
the biggest companies in the world as a
19:56
consequence
19:57
handing over helium to the community
19:59
would be nothing short of crazy for
20:01
helium inc and its investors which is
20:03
why i think the proposal to introduce
20:05
on-chain governance will pass
20:07
this will conveniently give control of
20:09
the protocol over to hnt holders and
20:12
it’s likely that helium inc and its
20:14
investors hold most of its supply
20:17
especially since they’ve been running
20:18
hotspots since the start
20:21
this ties into another concern i have
20:23
and that’s the potential privacy risks
20:25
people could face for installing hotspot
20:27
devices
20:29
i’ll start by saying that all of the
20:30
data transmitted over the helium network
20:33
is encrypted and helium ink’s own
20:35
hotspots protect privacy to the fullest
20:37
degree as noted by emea in many
20:40
interviews
20:41
however helium’s own documentation seems
20:44
to imply that this isn’t the case for
20:46
all third-party hotspots and it even
20:48
recommends you do your own research so
20:51
you know what you’re getting into
20:53
the last real concern i have with helium
20:56
is the chip shortage that’s currently
20:58
going on
20:59
some experts believe this chip shortage
21:01
will continue for years and this means
21:03
hotspot costs could stay inflated for a
21:06
very long time
21:08
even though helium’s decentralized
21:10
incentive structure makes 5g feasible if
21:12
the price tag for the hardware is too
21:14
high then not many people will be
21:16
willing to participate
21:18
this could put pressure on helium to
21:20
increase hnt rewards going to 5g
21:23
hotspots so they can easily make back
21:25
the cost but this could then put a
21:27
strain on the hundreds of thousands of
21:28
people who jumped on the longfire train
21:32
the good news is that all these issues
21:34
can and likely will be resolved in due
21:36
course and helium will almost certainly
21:38
continue to thrive
21:40
if helium’s peer-to-peer networks
21:42
managed to reach global adoption it will
21:44
change the world forever and it will
21:46
make cryptocurrency truly unstoppable
21:51
that’s just my two cents though and if
21:53
you folks have some thoughts about
21:54
helium i would definitely love to know
21:57
drop me a comment down below and don’t
21:59
forget to click that like button before
22:01
you go
22:02
subscribe to the channel too and ping
22:05
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next video gets to you
22:09
if you’re looking for more i have a
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second channel that you can explore
22:13
you can also find me on twitter tiktok
22:15
and instagram and you can get your dose
22:17
of daily crypto updates by joining my
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telegram
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my weekly newsletter is where i lay out
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my master plan you can see which videos
22:25
are coming next and where my crypto
22:26
holdings currently stand
22:28
and last but not least you can consider
22:30
purchasing a coin bureau hoodie or tea
22:33
the coin bureau merch store is where
22:35
you’ll find cool designs just like these
22:38
so just follow the link down below if
22:40
you please
22:41
thank you all so much for watching it’s
22:43
been a pleasure as always until next
22:46
time you can’t go wrong if you just keep
22:48
calm and hodl on
22:54
[Music]
23:00
you