Despite lingering confusion around the definition of blockchain, its use is spreading across industries, and a decentralized 5G network can now be added to the list.
Nova Labs recently signed an agreement with T-Mobile to launch Helium Mobile, a decentralized coverage service building off of Helium’s distributed Internet of Things (IoT) network.
The Mobile Virtual Network Operator (MVNO) will enable Helium Mobile users to access both T-Mobile and local Helium 5G networks created by users. But unlike traditional MVNOs, Helium's network will add to T-Mobile's existing network rather than functioning on top of it.
Nova Lab's GM of Wireless Boris Renski told SDxCentral the decentralized structure creates cost savings for both network operators and consumers, as well as the ability to use blockchain technology to more accurately verify connection shortcomings as the network is built out.
While the service is built out, subscribers can opt-in for crypto-based MOBILE token rewards for sharing data about coverage quality and helping identify Helium dead spots.
Helium launched in 2019 and has since deployed over 900,000 hotspots and 1,000 units added daily, according to the release. Currently, there are over 2,500 active Helium hotspots with 5G in 889 U.S. cities since launching in August 2022, according to the company.
Breaking Through Bureaucracy ... for $5 a MonthRenski explained one of the biggest benefits is the way the system’s cost savings on the operator side translates to the cheaper pricing model – starting at $5 per month.
“The biggest cost of deploying small cell networks today … is the cost of site acquisition. Because getting the permits to put a small cell on the roof of some building or inside of some stadium, it takes a long time, and it takes a lot of paperwork,” he explained.
With traditional models contribute to the operator’s capital expenditure, Helium’s model puts “people in control in that they can purchase the small cell,” he continued. Every time someone adds a cell to their home, they are lending the space and “internet connection to the benefit of the global network.”
Because this individual deployment cuts out the bureaucratic paperwork, installation, and insurance, Renski said that those cost savings get directly translated to the cheaper data and voice plans for users.
“As we get started, the cost savings are going to be less pronounced because the network is still relatively nascent. But as more and more cells get deployed, there's going to be more and more cost benefit to the end user,” he added.
Blockchain BenefitsAccording to Renski, the incentive of opting into the anonymized data collection offers benefits to the network’s buildout as well.
“As I walk around, my phone will anonymously transmit statistics about the locations where, for example, the latency is very high, or where maybe there's not enough bandwidth on the network, or where maybe the handover between the T-Mobile network and our network took too long or broke the sessions,” Renski described. To the extent that users share statistics and help improve the network, users earn MOBILE tokens.
While certain crypto types are known for high carbon emissions, Renski explained that while Bitcoin or pre-merged Ethereum were emissions-heavy, Helium is built on the Solana blockchain and, “uses a completely different set of concepts that does not require you to burn electricity," he said.
“So there is no sort of negative impact to the environment. It's just a structure that allows us – without any sort of middleman in the center – to validate that there is coverage in the network,” he added.
Renski said the blockchain mechanism used to create consensus of verified connection, called “proof of coverage,” is an essential component of mapping out Helium’s coverage points as it expands.
“There is enormous opportunity to innovate at the intersection of the blockchain and wireless when it comes to coming up with creative ways to incentivize users,” Renski conveyed. He looks at the incentive as an exchange for subscriber risk as the network continues to grow, but believes “blockchain in general allows you to be endlessly innovative.”
While there are plenty of deployments coming from consumers, Renski added that a lot of Helium's member base is becoming industrialized, listing tower operators, real estate companies, and vending machine companies all engaging with the service.
“Decentralized wireless has evolved into an industry with multiple layers,” he added.
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