HNT is the native cryptocurrency token that powers the Helium Network. Its utilization within the Helium ecosystem is two-fold. Firstly, it’s distributed as a reward for active Helium hotspots that either complete “Proof of Coverage” tasks or facilitate Network Data Transfers from IoT sensor devices. This type of crypto-incentivization is one of the primary ways in which Helium’s LongFi network has exponentially expanded over the course of the last year.
On the other side of the coin, HNT is used to purchase Helium’s Data Credits. These credits function similarly to “pre-paid cellphone minutes” and enable users to actually transfer data over “The People’s Network”. The price of Helium’s Data Credits is fixed at $0.00001 USD and the HNT that’s used to purchase them is permanently “burned” from the total supply.
When it comes to the Helium Network, all data-driven participants are required to purchase HNT in order to acquire Data Credits. So, let’s say you’re a smart scooter company hoping to use “the People’s Network” to transfer data from your scooters to the blockchain and beyond. In order to accomplish that, you’d first have to buy HNT and then convert it into Data Credits. Those Data Credits can then be utilized to send your IoT sensor device data across the network and finally to your servers.
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