Theta Crypto Network (THETA): What It Is and How It Works

Theta Crypto Network (THETA) is a decentralized video streaming platform that has garnered widespread acclaim for its unique approach to distributing revenue across the ecosystem, benefiting creators, contributors, and viewers alike. In this article, we will delve into the intricacies of the platform, exploring its functionality, native currencies, and the revolutionary impact it’s making in the rapidly evolving world of online video content.

As internet users worldwide consume billions of hours of video daily, the video streaming industry has become a powerhouse in internet traffic. The sector’s profitability has captivated the interest of both companies and individual users. Recent data underscores this trend, indicating that the video streaming market’s value surged from $376 billion in 2020 to an impressive $419 billion in 2021, with projections anticipating its value to reach a staggering $932.3 billion by 2028. The COVID-19 pandemic, in particular, catalyzed a doubling of global interest in online video streaming.

Simultaneously, with the proliferation of blockchain networks, the advent of Web 3.0, and the growing embrace of decentralized approaches across industries, the video broadcasting sector has not remained immune to these transformative efforts. Blockchain technology is being harnessed by various networks to challenge centralized platforms like YouTube and Twitch, ushering in a new era for decentralized video streaming.

What is Theta Crypto Network (THETA) ?

Video sharing and streaming platforms have become major players in internet traffic, with giants like YouTube dominating the market. However, content creators, the driving force behind these services, often receive only a fraction of the profits. Theta Network addresses this imbalance by establishing a decentralized video streaming network that distributes rewards to content creators, viewers, and all contributors involved in the network’s growth. By democratizing the online video industry, all users can benefit from this innovative, decentralized platform.

Theta operates as an independent blockchain network featuring an open-source protocol akin to Ethereum. This architecture empowers developers and contributors to build decentralized applications (dApps) on the Theta network. Leveraging blockchain technology, Theta facilitates decentralized and peer-to-peer video transmission, distinguishing itself as a pioneering force in the realm of entertainment technology.

When users engage with videos on the Theta Network, a portion of their computing power is utilized to relay the same video to other users. In return for this contribution, users receive tokens as a reward. This unique model positions Theta Network as the next generation of entertainment technology, providing a decentralized video streaming infrastructure at a lower cost than traditional platforms. The platform supports diverse content, spanning sports, movies, series, and music, all powered by a peer-to-peer video transmission system.

History and Founders of Theta Network (THETA)

Theta Network was founded in 2017 by Jieyi Long, a virtual reality and live streaming expert, and Mitch Liu, an entrepreneur with a background in mobile gaming and online advertising startups. The duo launched Theta.tv, where users could earn Tfuel tokens by engaging with content. Mitch Liu’s prior experience includes the creation of SILVER.tv, a game broadcasting project similar to Twitch, laying the foundation for Theta Network’s development.

The advisory board of Theta boasts prominent figures from the digital communication industry, such as Steve Chen, co-founder of YouTube, Justin Kan, co-founder of Twitch, Jonathan Wong, product manager at Rakuten Viki, and Kyle Okamoto, senior director of Verizon Digital Media. Noteworthy leadership figures within Theta include Ryan Nicholas and Riz Virk, serving as Chief Product Officer and Chief Development Officer, respectively. The platform has also established business partnerships with Twitch and the virtual reality division of Samsung (Samsung VR), solidifying its position in the industry.

How Theta Crypto Network Operates

Theta Network employs a sophisticated proof-of-stake (PoS) consensus mechanism known as Multi-Level Byzantium Fault Tolerance (Multi-Level BFT). This mechanism optimizes verification speed by utilizing a select subset of nodes, enhancing network efficiency compared to traditional proof-of-work (PoW) networks. The key components of this process include:

1. Validator Committee: Comprising 10 to 20 nodes, this smaller subset conducts initial verifications of transactions before sending them to the larger group of verifiers.
2. Guardian Pool: The main body of verifiers, consisting of a larger number of nodes, is responsible for fully validating transactions and incorporating them into the blockchain ledger. This structure ensures a balanced approach to transaction capacity, stability, and decentralization.

Theta Token (THETA) and TFUEL (TFUEL)

Theta Network operates as an open-source protocol, facilitating the creation of diverse software on its platform. Two native currencies drive the ecosystem:

1. Theta Token (THETA): Serving as the governance currency, THETA manages the Theta protocol. Users participate in governance processes and block generation by staking THETA as validator or supervisor nodes. Rewards are distributed in the form of another digital currency called TFUEL. The total supply of THETA is fixed at one billion units.
2. TFUEL Token (TFUEL): Created to address the need for increased liquidity, TFUEL functions as a utility token, comparable to Ethereum’s Gas. It facilitates intra-chain transactions such as rewarding edge node operators for sharing and replaying videos. Advertisers also use TFUEL to incentivize viewers to engage with promotional content. The initial supply of TFUEL at the network’s launch was 5 billion units, with a 5% annual increase.

Goals of Theta Crypto Network

Theta Network’s overarching goals revolve around addressing significant challenges in the video streaming landscape:

1. Empowering Content Creators: Theta aims to provide a more equitable revenue distribution model for content creators, diverging from platforms with strict algorithms that often disadvantage new and non-paying creators.
2. Decentralization and Censorship Resistance: Theta seeks to mitigate the risk of centralized platforms removing channels arbitrarily by decentralizing the network. This ensures content creators have a secure and censorship-resistant environment.
3. Improving Streaming Quality: Theta aspires to enhance video streaming quality by leveraging a global network of decentralized nodes. This not only reduces buffering issues but also levels the playing field, offering equal access to content for users worldwide.
4. Efficient Cost Structure: The decentralized nature of Theta reduces infrastructure costs, making video streaming more affordable by eliminating the need for expensive hardware.

Rewards and Incentives for Users

Theta incentivizes users through the distribution of TFUEL cryptocurrency. Users can contribute their unused bandwidth to the network, receiving TFUEL rewards in return. This decentralized model ensures equal access to content worldwide and significantly reduces the cost of video streaming compared to traditional services.

Versatility and Development Opportunities

Theta Network isn’t limited to video streaming; it accommodates various use cases, including live streaming, VR content hosting, sports streaming, and music. Developers can harness the power of Theta by building their decentralized applications using the platform’s smart contract features.

In essence, Theta Network emerges as a groundbreaking intersection of blockchain technology and video streaming, striving to revolutionize the industry by fostering a fairer, more efficient, and globally accessible ecosystem for content creators and viewers alike.

Features of Theta Crypto Network

Theta Network offers a suite of services and features designed to enhance user experience, promote decentralization, and facilitate seamless transactions. Let’s delve into the key components of the Theta ecosystem:

Theta Swap Decentralized Exchange

ThetaSwap DEX stands out as the pioneering decentralized exchange built on the Theta blockchain network. Leveraging open-source smart contracts and the Automatic Market Maker Method (AMM), akin to UniSwap, users can trade tokens adhering to the TNT20 standard without intermediaries. Key features include:

• Requirement of Theta Wallet plugin activation for browser trading.
• Exclusive trading pairs with TFUEL as one of the currencies.
• Option to create liquidity pools for non-listed digital currencies.
• Liquidity pool contributors receive a portion of transaction fees.

Theta Explorer

Theta Explorer functions as a blockchain browser, enabling users to search, confirm, and verify transactions on the Theta network. Notable features include:

• Transaction details retrieval using transaction addresses or hashes.
• Access to balance, amount, and transaction history for specific addresses.
• Smart contract exploration, allowing developers to upload and verify source code.

Theta Wallet

Theta Wallet, introduced post-mainnet release, serves as the official wallet for storing THETA and TFUEL. Available on Android, iOS, and as a Chrome extension, it seamlessly connects to the Theta Swap decentralized exchange. Noteworthy features include:

• Multi-platform availability: Android, iOS, and Chrome extension.
• Integration with Theta Swap for decentralized exchange transactions.

THETA.tv

THETA.tv represents the first video platform operating on the Theta Network. Offering 24/7 Esports tournaments and top crypto video conferences, THETA.tv distinguishes itself with the following features:

• Continuous broadcasting of Esports and crypto events.
• TFUEL cryptocurrency rewards for viewers contributing bandwidth and processing power.
• Accessibility through THETA.tv mobile application and Littlstar program for PS4.

Theta Project Roadmap (2018 – June 2022)

Theta’s development roadmap reflects its evolutionary journey from the initial release of Theta coin in 2017 to its roadmap milestones until June 2022:

• March 2018: Integration of Theta platform and SLIVER.tv.
• April to June 2018: Completion of proof-of-stake algorithm, demo protocol release, blockchain browser launch, and initial test network release.
• July to September 2018: Theta wallet supply introduction.
• August to December 2018: Introduction of Theta Coin on the mainnet.
• … (Detailed roadmap review spanning 2018 to June 2022)

Theta Crypto Wallets (THETA)

Theta Wallets serve as secure storage for THETA and TFUEL digital currencies. Available on Android and iOS, with a Chrome extension for web browsers, these wallets ensure a user-friendly experience. Supported wallets include Ledger, Trezor, MattWallet, TrustWallet, and SafePal.

In essence, Theta Network’s array of features caters to diverse user needs, from decentralized exchange transactions and blockchain exploration to secure storage solutions and immersive video streaming experiences. The roadmap illustrates the platform’s commitment to continuous innovation and expansion.

Theta Crypto Protocol Collaborations

In addition to its integration with prominent video streaming platforms like Lionsgate, Gumi Cryptos, and Pandora.tv, the Theta protocol has extended its reach to blockchain projects, fostering meaningful collaborations. Here are notable partnerships:

1. Collaboration with Chainlink for Advertising Fraud Mitigation

In 2020, Theta Protocol initiated a collaboration with Chainlink to combat multi-billion dollar fraud in internet advertising. The joint solution aims to enhance transparency and confidence in video data performance. Theta processes video data using the BigQuery analytics database, assigning scores to individual streamers. Chainlink’s Oracle transfers these ratings to the Ethereum blockchain, providing advertisers with reliable metrics and reducing the prevalence of fraud in the advertising space.

2. Partnership with Korean Video Streaming Platform Pandora.tv

Pandora.tv, a content creation portal boasting over 15 million monthly users, has joined forces with Theta to leverage its infrastructure solutions. By utilizing Theta’s platform, Pandora.tv aims to elevate the quality and speed of its video content, enhancing the overall user experience for its substantial audience.

3. Collaboration with SamsungVR for Theta Network Technical Development

Theta Protocol’s collaboration with SamsungVR focuses on the technical development of the Theta network. Samsung’s virtual reality platform, requiring significant bandwidth for high-quality 360-degree video content, benefits from Theta’s blockchain and peer-to-peer network. This collaboration results in a substantial reduction in required bandwidth, optimizing the streaming experience on SamsungVR.

Features of Theta Digital Currency Network

Theta digital currency network boasts three distinctive features:

1. High Speed and Scalability: Enabled by the Byzantine Fault Tolerance (BFT) consensus mechanism, Theta achieves faster block processing and superior scalability.
2. Efficient Data Dissemination: Leveraging the Aggregated Signature Gossip scheme and nearby nodes, Theta ensures rapid data dissemination, enhancing the overall efficiency of the network.
3. Enhanced Scalability: Incorporating off-chain processing and micropayments, Theta achieves high scalability, facilitating efficient and seamless transactions.

Theta Digital Currency Mining

Earning Theta digital currency involves contributing your internet bandwidth to the Theta network. The process, known as Edge Node mining, utilizes your internet to broadcast content within the network. Key points regarding Theta digital currency mining include:

• Theta mining focuses solely on internet bandwidth and does not involve other computer components like the CPU.
• The amount of TFUEL rewards is proportional to the internet speed you contribute.
• Mining requirements include connecting to peers, dependent on your Internet Service Provider (ISP) and geographic location.
• Mining profitability is influenced by the price of TFUEL in the digital currency market.

Theta TV and Long-Term Investment Perspective

Theta TV, the video streaming platform on the Theta network, rewards users for contributing bandwidth and processing power. The Golden Stream Key, which costs $1000, is a pivotal component in receiving these rewards. Users can choose to convert TFUEL earnings into dollars in the digital currency market or view Theta as a long-term investment, anticipating potential price increases.

Conclusion

Theta Network aims to revolutionize video streaming infrastructure by providing a decentralized, cost-effective alternative to centralized platforms. The protocol alleviates the burden on streaming services like YouTube and Twitch by distributing bandwidth and computing power in a decentralized and peer-to-peer manner. Theta’s users include both major companies, staking THETA for network infrastructure services, and individual users who act as edge nodes, earning TFUEL rewards for contributing their device’s bandwidth and computing power. Overall, Theta Network emerges as a dynamic ecosystem shaping the future of decentralized video streaming.

FAQ