The Helium project wants to deploy a parallel and decentralized internet. However, facing the limitations of its own blockchain, the project is considering a migration to the Solana network. A boon for both projects.
Helium: towards a decentralized internet
Launched in 2013, Helium is an ambitious project that aims to create a decentralized internet. To do this, the network relies on a consensus called Proof of Coverage.
Thus, miners are replaced by issuing terminals. These terminals, called Helium Hotspot, emit a network around them. Eventually, the Helium project aims to have millions of hotspots around the world, allowing to create a widespread internet coverage.
In total, the project has 4 different tokens:
- HNT: obtained by Helium Hotspot operators;
- IOT: obtained by the operators of complete nodes;
- MOBILE: obtained by 5G Hotspot operators;
- Data Credit (DC): used to pay transaction fees.
Helium wants to migrate to solana
Since its launch, nearly one million Hotspots have been deployed around the world. However, the project encounters some problems that slow down its evolution.
Indeed, Helium is facing important scalability problems. That’s why the developers have considered a migration to the Solana network via the Helium Improvement Proposal 70.
The objective would be twofold. On the one hand, Helium will have access to a better infrastructure and better performance. On the other, its users would be able to access Solana’s application ecosystem.
“Most importantly, it will allow the network to solve the scaling issues that have the most impact on UX: inconsistent PoC and data transfer. It’s hard to convince hotspot operators and potential customers to use the network when those elements aren’t solid.”
If the migration goes through, the project will abandon the concept of staking as we know it in favor of staking in a DAO. This will take the form of a vote-escrow similar to that implemented by the Curve Finance protocol. This model allows to improve the voting system, better fight against governance attacks and limit the power of whales.
The vote on this proposal will be submitted to the community governance on September 12 and will close on September 18.
A mixed reception
In the comments following the announcement on Twitter, the community seems divided.
It seems that the migration to another blockchain is generally well received. However, many Internet users question Solana’s choice. Indeed, they point the finger at the downtime encountered by the chain since its launch. Others criticize the fact that Solana is a channel “owned by the VCs”.
Last February, the Helium project raised $200 million in a round of financing backed by FTX Ventures.