Some time ago, a twitter thread made the community react about the amount of $6600 of communications consumption on the Helium network. This thread was full of approximations in order to present negatively the growth of the Helium network. But it is also an opportunity to take stock of the development of the use of the network. We will see in this article who operates the Helium decentralized network, what are the current data volumes and what are the associated financial metrics.
In short, we cannot talk about Nova Labs’ revenue with respect to direct communication costs because these costs are associated with different third parties offering the packet routing service. We cannot rely on this cost to estimate an associated business volume because there are many indirect costs as I have already specified in my blog post analyzing the running costs of a Helium router/console. Finally, regarding a long period where gamers found a way to earn a few dollars on the back of Nova Labs, involving many ancillary costs, distorted the data for June. You will understand all this in the rest of the article.
Disclaimer: I’m the owner of the public helium console helium-iot.eu (oui 6) – no need to makes comment like “he have written this because he own … blablabla”
The HIP-51 (Helium Improvement Proposal #51) starts a new way for Helium network. When it has started about 2 years ago, Helium has been designed to propose a global LoRaWan network. But, has I explained at the beginning of this journey, it’s not just a network, its the uberization of the telecom industry. In other words, once you find a good way to transform an industry, there is no reason to just transform on of its services, better is to transform all.
Telecom are not single network, they have IoT networks with LoRaWAN, NB-IoT, LTE-M, they have some WiFi services and 4G/5G services. The HIP-51 is basically a way to go that multi-service direction to compete with telecom industry.
I’ll detail in this post the way this is working (as much as I understood it, reading the HIP-51 currently under vote), and try to explain what will be the impact on the network and tokens.
The Helium router (aka console) is the LoRaWan network server. In a previous post I described how to setup a Helium router / console. In this post I will give you some details of what you can see in the grafana monitoring dashboard and this will help you to understand better how the network works to process the LoRaWan packets. We are going to detail what is an offer, a packet and the different monitoring information we can get from the router.