Following the publication of a new HIP 70 governance proposal on Tuesday, the Internet of Things (IoT) blockchain network Helium may migrate to the Solana blockchain.

The core developers stated that they needed to improve operational efficiency and scalability to bring significant economies of scale to the network.

Users join the platform’s network by installing a Helium Hotspot, which provides decentralized wireless 5G coverage for online consumers in their area. It employs a novel consensus mechanism known as proof-of-coverage to validate network access and distribute HNT tokens to Hotspot providers when coverage is confirmed.

The proposal comes after developers emphasized the importance of resolving a variety of technical issues to enhance its capabilities:

"Both have been going to be difficult for participants in the last several months of the network, with much lowered Proof-of-Coverage activity due to the size and blockchain/validator load, as well as packet delivery issues."

According to its GitHub page, the HIP 70 proposal has been put forward to enhance these data transfer and coverage abilities.

Helium-based HNT, IOT, and MOBILE tokens, as well as Data Credits (DCs), would be added to the Solana blockchain.

Hotspot providers earn HNT for the network, node operators earn IOT for providing the LoRaWAN, 5G coverage earns MOBILE, and DCs are used to pay transaction fees.

The platform has functioned on its own blockchain since its inception in 2013. Arman Dezfuli-Arjomandi, the host of the Hotspot podcast, stated on Twitter that "Ethereum was too slow" and that "other options at the time weren't all that appealing:"

"When the protocol first started, it had to create its own Blockchain because there was no blockchain on which this could have been built at the time."

Despite having nearly one million Hotspots distributed globally and backed by companies such as Google Ventures, the network has received criticism.

Following the news that it was only producing $6,500 per month from data usage revenue, even after raising over $350 million, entrepreneur Liron Shapira blasted the network for its complete lack of end-user demand.

It also went down for four hours, preventing HNT token holders from exchanging their tokens and Hotspot miners from obtaining rewards.

The community responds positively

Several more community members have reacted positively to HIP 70, believing that integrating into Solana will greatly benefit developers.

Ryan Bethencourt, a partner at Web3 backer Layer One Ventures, told his 16,000 Followers on Twitter that if the recommendation is approved, the proposal will be "huge" for Helium and Solana.

Another Twitter user described the combination as "mind-blowing."

The HIP 70 vote is set for September 12 and will be accessible to HNT token holders via heliumvote.com. Voting will close on September 18.

The news does not appear to have positively impacted HNT's price, which is currently $5.23, down 15.5% in the last 48 hours.

Posted 
Sep 1, 2022
 in 
Crypto News
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