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Building a Mobile Network on Helium Blockchain
The Helium mobile network operates by allowing users to plug in a small hotspot at their homes and earn tokens in return. Users can buy the Helium mobile plan at a significantly cheaper rate compared to traditional carriers like Verizon or AT&T. The network routes traffic through Helium hotspots, which are much more cost-effective than using T-Mobile's network. The company managing the mobile plan, Noble Labs, benefits from managing costs efficiently by routing data through Helium hotspots. The Helium token supply increases when data flows through the Helium network, leading to cash flows and token burn from data credit purchases. The two-sided marketplace of Helium's network, involving the supply of hotspots and demand from mobile phone users, creates a strong moat and potential monopoly, making it challenging for competitors to replicate the network's success.