Helium, is considering abandoning its own blockchain network to migrate to Solana. An important decision for the community, but is it really good news for the project?
What is Helium? A quick recap
Helium is a company that sells “hotspots”, devices that provide a wireless network for connected devices. The market value of a hotspot is around $500 and the router allows you to participate in the Helium network and mine HNT, the project’s native token.
In early 2021, Helium skyrocket thanks to its community, market context and thanks to its appearance in media like the New York Times.
In February 2022 it’s the consecration, the company gets a $ 200 million financing by Tiger Global, Andreessen Horowitz and FTX Ventures becoming in the process a unicorn.
Helium uses its own blockchain, but on August 31 a proposal is launched: migrate to the Solana blockchain.
Moving to Solana, the reason of Proposition HIP 70
The HIP 70 Proposal is a proposal to migrate to Solana. The argument behind it is that this migration would improve the operational efficiency of the network by giving Helium access to Solana’s tools, applications and development capabilities.
The proposal seeks to make three major changes:
- Change Helium’s Proof of Coverage (PoC) consensus and leave it to blockchain Oracles.
- Move the accounting of data transfers to oracles.
- Migrate the Helium network and all its tokens to the Solana blockchain.
If the company seems to be successful on its blockchain with its token currently 91st on Coingecko, why migrate?
For one simple reason: to improve its scalability, the eternal problem in blockchain. And because of its growth, Helium does not escape the rule. The use of Oracles will thus allow a better stability of the network and a much more important speed.
Finally, Solana being a blockchain with an active community, Helium developers will have access to many open-source tools to continue the democratization of Helium.
The vote will take place from September 12 to 18 and, decentralization obliges, it is up to the community to make a choice that will mark the direction the project will take.
Will the Helium community opt for a migration to Solana or will it stay on the current network? We will have the answer in the next few days… in the meantime, don’t hesitate to consult our latest guides and to follow us on our social networks.😉
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