Gold Rush 2021: Cryptocurrency May Provide No-Cost Internet in California

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Last week, San José, CA Mayor Sam Liccardo announced a partnership between the city, blockchain-powered decentralized wireless network Helium, and the California Emerging Technology Fund (CETF) to cover the cost of internet for 1,300 low-income residents for one year. ZDNet reported that cost is the number one barrier to entry for broadband for those residents of San José who lack service. 

The collaboration aimed at closing the digital divide is about to enter a six-month pilot program, after which the San José Mayor’s Office of Technology and Innovation will decide whether to move forward with the effort, reported ZDNet. The complex program will “self-monetize IoT networks and blockchain-based solutions.”

The pilot program will work like this: 

  • Helium hotspots will be purchased by CETF and installed in homes and small businesses of volunteers to “mine” HNT, the Helium cryptocurrency. 
  • The Helium-compatible hotspots will act like “mini cell towers,” sharing “long-range connectivity with other IoT devices around them.”
  • Each hotspot should produce approximately $20 in cryptocurrency monthly, using the same amount of energy required to light an LED bulb. 
  • The CETF will convert the mined HNT into prepaid, $120 cash cards that will be dispersed among low-income households to subsidize internet expenses. 

The Mayor’s office will work with the San José Digital Inclusion Fund and CETF to determine which residents qualify for the program. Recipients will likely include those that have a child enrolled in the National School Lunch Program, receive CalFresh (food stamps), Supplemental Nutrition Assistance Program, Supplemental Security Income, Social Security Disability Insurance, or Medi-Cal.

“Becoming a smarter city means leveraging emerging technologies that improve how we serve our community, making it safer, more sustainable, and more equitable,” Liccardo said. “This first-of-its-kind partnership between the Mayor’s Office, Helium, and CETF represents one of many innovative public-private partnership models that we’re advancing to bridge the digital divide for residents.”

According to ZDNet, the plan also involves expanding Helium’s wireless network to power IoT infrastructure, including “air quality monitoring, fire detection, water leakage, and climate-related issues.” Currently, there are over 200,000 Helium hotspots worldwide, constituting a “peer-to-peer, IoT network.”

“The ultimate goal of Helium is to provide a long-range network for IoT devices,” Frank Mong, COO of Helium, told ZDNet. “The positive side effect of the blockchain-based incentive model powered by HNT is enabling the hosts to offset costs related to connecting hotspots.”

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