What Is A Data Only Hotspot
A Data only hotspot is almost the same as the Light hotspot. You need a hotspot, an antenna and an internet connection for both. But how they work and what they do is slightly different for both hotspots. As you know the light hotspot earns HNT for the Proof of Coverage and for transferring data over the network whereas the Data only hotspot only earns HNT for transferring data and not for the Proof of Coverage. This doesn’t mean you shouldn’t upgrade your Data only hotspot with a better antenna or a filter because it is still very important to hear as many hotspots as you can to transfer their data.
When Should You Buy A Data Only Hotspot
Light hotspots earn most of their reward with Proof of Coverage. But the amount you earn each time is heavily impacted by the transmit scale. You earn the most HNT when your transmit scale is 1. When the max amount of hotspots in an area are reached your transmit scale is going down. For example when you earn 1 HNT for a Proof of Coverage challenge but your transmit scale is 0.25 you will earn 25% of 1 HNT. So when you live in a very crowded area with a poor transmit scale your return on investment when buying a Light hotspot can be very poor. In this case it is better to buy a Data only hotspot which is way more cheap and the return on investment can be very good in these crowded areas because the amount of data transfers are very common and large in size in these areas.