The wireless network is the gateway to the Internet, but it is not transparent, and this situation will soon change. Telecom services have dominated the communications stack for decades. As the internet transforms to host 4K video and millions of IoT sensors, some question whether the telecommunications industry will be able to serve the next generation of internet users.
Traditional wireless networks are limited by bandwidth, congestion, service delays and outages, and users must deal with complex and costly issues in addition to determining proper network coverage. Many others have no access to the Internet at all. A Cornell University study found that "network coverage in low-income areas is nearly 15 percent lower than in affluent areas," contributing to the mobile divide. Since many people in low-income communities access the Internet primarily through their mobile phones, adequate network coverage is critical. As a result, the decentralized wireless network (Decentralized Wireless, DeWi) was born.
The Decentralized Wireless Network (DeWi) aims to revolutionize the way communication networks are built, operated and owned by incentivizing operators to deploy and maintain telecom hardware in exchange for token rewards.
Thanks to the popularity of mobile phones, 66% of the world's population has access to the Internet, compared to only 7% in 2000. Internet connectivity and accessibility continues to expand across the globe, and the resulting volume of data will only increase. The rise of new technologies such as autonomous vehicles, the Internet of Things, smart cities and virtual reality has increased the global demand for higher bandwidth and lower latency networks. Traditional wireless (TradWi) network operators will not be able to meet this increased demand.
Before discussing DeWi in depth, we should take a look at traditional communication infrastructure. It's worth noting that telcos typically deploy new wireless networks every ten years. This process often involves the following aspects:
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Loaded with tens of billions of dollars in debt to fund capital expenditures and operating expenses.
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Purchase a government spectrum license.
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Leverage third-party manufacturers for proprietary hardware.
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Identify property owners willing to install cell towers and radios on their property.
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Mobilize thousands of field technicians to install and maintain complex equipment.
The top-down network building model used by telcos is not well suited for next-generation wireless networks. New network technologies such as 5G require far more radios and antennas than telcos can afford. Telecommunication models have historically prioritized coverage in densely populated areas, resulting in inadequate coverage in many less populated rural areas.
The past few years have seen some exciting changes in the world of telecommunications services. These three important shifts have laid the groundwork for the adoption of DeWi today: eSIM becoming mainstream, open wireless spectrum, blockchain technology and wireless hardware being more advanced.
Apple released the iPhone 14 last month with one notable difference from previous iPhones: It no longer has a physical SIM card slot. The latest iPhones support a digital alternative called eSIM, which users can activate by scanning a QR code. This is an important advancement for DeWi cellular networks, as it reduces carrier switching costs to near zero. Because the iPhone 14 has 6 eSIM slots, users can install a DeWi eSIM next to their existing traditional carrier's eSIM and use both cellular networks at the same time.
The Helium Network is a new decentralized network that aims to solve these systemic, expensive, and unfair problems by introducing an overlay mode operated by clusters of nodes, each node emitting radio waves from its location. Thousands of people can easily earn rewards for more reliable network coverage and contribute to building a strong network by allowing broad participation for all with a wireless hotspot (Hotspot).
While Helium offers a whole new way of building the web and opens up space like the open source movement of the Internet, it's unlikely to be a one-size-fits-all technology.
Telcos are all designed to cater to consumers, with speed and coverage, but their contract terms are too strict and there is little trust. Telcos aren't offering enough flexibility in rates or coverage for businesses using IoT devices, nor can they offer the low power consumption and high range services that IoT is going for.
How is it all connected ?
The Helium network uses a proprietary algorithm called Proof of Coverage, which verifies the location of hotspots. Proof of coverage will always confirm that the hotspot emits wireless network coverage from a specific location. It uses radio frequency (RF) technology to generate confirmation messages to help the network operate. According to the company, proof of coverage is based on three key characteristics: RF distance, RF strength and RF speed. They use a PoC challenge algorithm that checks hotspots to ensure broadcast coverage from their claimed locations.
The "challenge" consists of the hotspot that initiates the challenge, the hotspot that receives the challenge, and nearby "witnesses" who report the real existence of the challenge to the network. The challenger hotspot first generates a public/private key pair for the challenge. Then submit the SHA256 algorithm as a challenge proof request to the blockchain along with the public/private key. If the request is valid, the blockchain will accept the request and create a new block using the challenger's identity and public key hash. Hotspot will issue a challenge proof every 360 blocks and get HNT (Helium's token). Once the data from the hotspot has been checked and verified, it is stored on the Helium blockchain.
Nova Labs, the developer of Helium, announced their intention to turn Helium into a decentralized platform on which any type of telecom network can reside. This strategic change transformed Helium into a network within a network. On various networks such as 5G, WiFi, VPN, and CDN, the process of rapid expansion of "Long Range Wide Area Network" (LoRaWAN) can be replicated.
With the success of Helium's LoRaWAN network, Helium has inspired many new DeWi network projects based on the Helium model. There are more than 14 existing DeWi networks, including cellular, WiFi, LoRaWAN, Bluetooth and hybrid networks :
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5G networks (cellular) : The Helium 5G and Pollen Mobile networks, which use the recently deregulated CBRS spectrum, are two prominent networks in the 5G category. The market opportunity for cellular networks is the largest when compared to other network market sizes.
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WiFi Network: DeWi WiFi Network aims to create a global shared WiFi network that anyone can connect to for free. WayRu and WiFi Dabba are two early projects in this space.
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LoRaWANs (Internet of Things) : LoRaWAN is a low-power long-range wireless communication protocol ideal for sending small packets of data (such as sensor data) over long distances, making it the network of choice for IoT devices. Helium and Foam also belong to this type of network.
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Bluetooth Low Energy Networking : Bluetooth low energy networking is ideal for low-power short-range applications. Nodle is a Bluetooth mesh network that connects IoT devices to the Internet using smartphones and Bluetooth low energy routers.
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Hybrid Networks : Decentralized Internet connectivity is performed through hybrid networks that combine various wireless technologies into a single solution. Althea and World Mobile Token are two examples of this.
Here we have a few examples of DeWi networks for you to explore and understand, and these networks are developing and building their own products.
HNT : Token of the Helium Network
At the time of writing, HNT is trading at $6.64 with a market cap of $1.5 billion and a circulating supply of 100 million HNT.
The reward distribution percentage of HNT depends on whether the node is a challenger, challenged or witness, and the type of work performed is verification, data transmission, or publishing new blocks to the network. Additionally, HNT mining is done using wireless technology, while traditional mining uses energy-intensive GPUs.
On the other hand, the DeWi network employs a novel token distribution mechanism that rewards participants for performing verifiable work in the real world. This incentive system is responsible for the economic flywheel, allowing the network to start without the help of a centralized entity.
Protocols can incentivize participants to steer the supply side of the network until its reach is broad enough for end users to use. This allows the protocol to gain adoption and gain the initial momentum needed to compete with centralized telecom services. By building the supply side of the network, operators take ownership of the advantages of the network, which motivates them to commit to the success of the network.
Compared with traditional wireless networks, what are the advantages of De Wi ?
Compared with traditional wireless networks, the most significant advantage of DeWi network deployment is lower capital expenditure and operating costs. Building a network in the traditional way requires a centralized entity to spend tens of billions of dollars to purchase spectrum licenses and vendor-specified proprietary hardware, lease land for deployment, pay thousands of on-site technicians to install and maintain the equipment, and maintain Extensive backend infrastructure for scheduling, onboarding, billing, and customer support.
Carriers can use DeWi to automatically enter into revenue-sharing agreements based on the revenue generated by each hardware device. In traditional wireless network deployments, operators must pay a fixed fee to the landlord of the land used for deployment. DeWi's revenue sharing model is not only more efficient, but also allows landlords to verify the revenue of the hardware on their properties, and then share.
Next-generation wireless networks require a non-traditional deployment model. Historically, macrocellular radios mounted on large cell towers or masts provided cellular coverage over wide geographic areas. But the problem with macro cells is that they offer a low-frequency range, and 5G networks, unlike older-generation cellular networks, require higher frequency bands for increased bandwidth. DeWi offers a more cost-effective solution for deploying 5G networks. DeWi will not replace the traditional wireless network, but can serve as its supplementary network. DeWi allows users around the world to build networks in parallel, which is much faster than centralized methods. Players who understand their coverage can focus on deploying infrastructure that meets local market needs. With the macro coverage of traditional wireless networks and the small cell coverage of DeWi, 5G networks will become more accessible globally.
conclusion
The decentralized web is the future of telecom services. Nova Labs is ready to expand and strengthen its coverage. The DeWi space is still in its infancy, but its potential to transform the telecom industry is undeniable. A large number of fast-growing protocols are vying for a share of the DeWi cellular market, showing the huge opportunity potential of this market.