The Helium Foundation recently proposed to move from its designated blockchain to the Solana blockchain.
Via a Twitter post, they explained that the proposal- HIP 70, would bring a move of Proof of Coverage and Data Transfer Accounting to oracles. After that, the blockchain network would migrate to the Solana blockchain.
While the proposal highlighted the benefits migrating would provide, the news was met with mixed reactions from Helium users and brought to light the company’s challenges.
The “Internet Of Things” And Acclaimed “People’s Network”
Helium is a peer-to-peer blockchain network designed to “incentivize the creation of decentralized, public wireless networks.” It utilizes long-range wireless hotspots to provide a cost-effective way for the Internet of Things devices to interact with reliable, decentralized internet.
The connected devices range from environmental sensors to smart pet collars, kitchen appliances, and bike trackers. Any compatible IoT device can utilize Helium’s connectivity without WiFi or a cellular network. The Helium hotspots can connect with devices up to hundreds of meters away.
While Helium provides a cheaper data transmission option but also incentivizes users, individuals can deploy hotspots and provide wireless coverage to other devices. They have been rewarded with HNT cryptocurrency for their contribution.
How Far Has Helium Network Achieved?
Helium has been praised for providing practical use cases of many crypto blockchains and proposed utilities.
The blockchain network was featured in New York Times for bringing more than “financial speculation and crimes,” two prominent features of the crypto industry.
Bringing solutions to non-crypto users created an appealing edge to normies unfamiliar with the technology. When an incentivized system was introduced, Helium witnessed many onboarders suddenly having an unquenchable interest in crypto investments.
However, the question remains this- with phenomenal growth, the introduction of 5G, and adoption in over 8,000 cities, why the proposal for migration?
Speculations point out Helium miners and their complaints over significant reward drops and the network’s inability to meet up with demands.
Helium’s Shortcomings and Solana’s Persuasive Edge
According to a Medium blog post, the Helium core developer team described the move as a decision to “improve the operational efficiency of the Helium blockchain significantly.”
They stated the move would help the network take advantage of Solana developer tools, applications, and scalable features to bring significant economies of scale. Solana, the team continued, was the most compatible L1 chain focusing on the importance of scalability and speed without sacrificing security.
Developers advocated migrating HNT, DC, IOT, and MOBILE, tokens, governance, and economics to
Named HIP 70, the proposal, if passed, would implement the following significant changes:
- •Moving Proof-of-Coverage, the novel work algorithm, to Oracles
- •Moving Data Transfer Accounting to Oracles.
- •Simplifying the network’s architecture allows it to focus on easy tasks like payments, transactions, and settlements.
In light of the announcement and the crypto bear market, HNT saw a 50% price drop. In the words of Alex Kruger, the influential crypto analyst- “‘ Helium’s price is getting torched since they announced moving HNT to Solana.” The boys at Helium must not be aware the market values layer 1s much higher than web3 apps.”
Whether the migration will happen remains to be seen as voting begins on the 12th of September.
The Helium Network stands a lot to gain from the move, irrespective of conflicting opinions. Also, if they claim Solana will solve the issues users struggle with, then the best thing is to wait it out and see.