Theta Network is the proof of stake-based blockchain protocol that has attracted attention lately. The Theta Network is a blockchain network that prioritizes the media and entertainment sector. This network is designed to facilitate the delivery of content smoothly, at no cost, with high speed, and large data transfer capacity.
Theta adopts a peer-to-peer network model to reduce bandwidth costs and streaming latency. This is achieved through the concept of sharing bandwidth and user computing resources.
To understand more about Theta Network, from how it works to its features, check out the full review below!
What is Theta Network?
Quoting docs.thetatoken.org, Theta Network is a blockchain focused on media, artificial intelligence (AI), and next-generation entertainment.
The Theta Web3 infrastructure enables existing video and media platforms to increase revenue and reduce CDN content delivery costs incrementally. It also rewards end users who share their storage and/or bandwidth on any PC, mobile phone, Smart TV, or IoT device.
Theta supports full Turing smart contracts and is fully compatible with Ethereum. This allows a wide range of interesting Web3 applications to be built on the Theta Network.
Examples include non-fungible tokens (NFTs), decentralized exchanges (DEX/DeFi), and decentralized autonomous organizations (DAOs), which could become critical components in next-generation media and entertainment platforms.
Global leaders, including Google, Samsung, Sony, Creative Artists Agency (CAA), Binance, Blockchain Ventures, DHVC, and gumi, lead Theta’s corporate validators and governance board.
Theta leverages the user base of millions of viewers on the Theta Network to grow its peer-to-peer video network alongside premium content partnerships with Lionsgate, MGM Studios, NASA, and others.
Popular video platforms integrated with Theta’s infrastructure include CONtv Anime, Cinedigm, Samsung VR, GameTalkTalk, MovieBloc, Ultra, GFUEL, and other OTT media, entertainment, and live streaming services.
Strategic corporate investors include Samsung NEXT, Sony Innovation Fund, Bertelsmann Digital Media Investments (BDMI), Creative Artists Agency (CAA), and Silicon Valley venture capital firms such as DCM and Sierra Ventures.
The Theta Network is a “dual network” made up of two interacting subsystems, the Theta Blockchain and the Theta Edge Network. Theta blockchain provides payment, reward, and smart contract capabilities.
Meanwhile, the edge network is responsible for storing and delivering media assets such as images and videos.
The History of Theta
Quoting forkast.news, Theta was founded in 2017 by Mitch Liu, a serial entrepreneur who previously co-founded mobile gaming and online advertising startups, and Jieyi Long, an expert in virtual reality live streaming technology.
In 2017, the team behind Theta held a private token sale, selling 30% of a limited supply of 1,000,000,000 THETA units to raise the equivalent of $20,000,000 as an initial boost for their project.
Theta Labs, the company behind Theta Network, also has its streaming site, Theta.tv. This site pays viewers with TFUEL to watch video content, which, during viewing, is “forwarded” to other viewers using some of the main user’s processing capacity.
Theta Network’s advisory board includes Twitch co-founder Justin Kana, YouTube co-founder Steve Chen, and several senior Verizon executives.
Theta’s Blockchain Network is Powered by 3 Types of Nodes
Quoting the forkast.news page, the Theta blockchain network is powered by the following three categories of participants:
1. Enterprise validator nodes
These are companies that lock THETA tokens to process transactions on the network. Some of the most well-known validator nodes on the network include Sony, Creative Artists Agency, Google, and Samsung.
Validator nodes are the network’s main line of defense and require participants to lock up 1,000,000 THETA coins.
2. Guardian nodes
Guardian nodes are community nodes responsible for maintaining consensus by securing validation at predetermined points. They are users who ensure the transaction blocks created by the company’s validator nodes function accurately, adding a second layer of security to the protocol.
If a malicious block escapes the validator nodes, the guardian nodes will stop it. Guardian nodes only need to lock 1,000 THETA coins.
3. Edge Nodes
Edge Nodes allows users to forward video streams and share their bandwidth for streams on Theta.tv. They are rewarded with TFUEL for supporting the network.
The Theta network allows users to stream peer-to-peer without needing a centralized content delivery network.
How Theta Network Works
The Theta blockchain network is based on a peer-to-peer (P2P) protocol that rewards participants with real-time payments for content distribution.
The network also allows developers to build DApps (Decentralized Applications) on its open-source blockchain protocol.
Theta uses a proof-of-stake consensus mechanism similar to the Tendermint blockchain protocol based on staking.
This means that participants lock up many THETA tokens to gain the right to process blocks of transactions.
Theta Network Goals
Quoting forkast.news, Theta aims to change the future of video delivery platforms with the help of blockchain technology and its network of validators.
The software is built to encourage its global network of users to create and support a fully decentralized video streaming platform.
Despite great technological advancements, video streaming quality and loading times do not always match viewers’ high expectations. This is due to server location restrictions on video streaming platforms and content distribution networks.
Regular content distribution networks are paid to deliver video content to end users, but centralized servers cannot keep up with the growing demand for streaming quality.
Theta aims to bridge the gap between streaming quality and speed by enabling its global users to forward videos using available computing power and bandwidth.
The more users active on the network, the more bandwidth available for video streaming, increasing streaming speed and quality with each new node.
Theta allows creators more control over their content and monetization, likely increasing the network’s popularity. Investors who believe the future of shared video streaming platforms is built on blockchain technology also support Theta.
Features of Theta Network
Quoting id.beincrypto.com, the following are the main features of Theta Network, including:
1. Three types of nodes
As explained earlier, Theta is a network consisting of three types of nodes, namely Enterprise Validator, Guardian, and Edge.
A variant of the network’s unique BFT (Byzantine Fault Tolerance) mechanism is part of its Proof-of-Stake (POS) governance structure.
It organizes the peer-to-peer network of nodes participating in Theta Network’s operations.
2. Customizable DApp development capabilities
Theta Network allows developers to create decentralized applications or DApps.
3. Theta TV
Theta TV realizes the platform’s vision of video streaming using blockchain technology. The Esports Entertainment platform allows content creators to earn TFuel through viewer subscriptions.
They can also request donations from viewers using credit cards, which will be paid to the creators’ wallets in USD stablecoins.
Pros and Cons of Theta Network
The Theta Network has some advantages and disadvantages that are important to know. Here is an explanation of the pros and cons:
1. Pros
- Backed by a team of experienced experts in the video streaming industry, including Steve Chen, co-founder of YouTube, who is a consultant to Theta.
- Provides decentralized online video streaming services.
- Collaborate with leading platforms such as Google and Samsung Virtual Reality.
- Strategizing to reduce costs in video streaming services.
- Focusing on efforts to improve video quality and online video broadcasting.
2. Cons
- As a relatively new project, sustainability is key in determining the platform’s reliability.
- Low level of liquidity.
- The Initial Coin Offering (ICO) is private and centralized, which may reduce transparency.
- Theta.TV experiences high levels of video buffering.
Double Tokenomics: THETA and TFUEL
Quoting id.beincrypto.com, the Theta tokenomics model is designed to provide fair rewards to all stakeholders in the Theta ecosystem to increase the security and utility value of the Theta Network.
This ecosystem has two native crypto assets, THETA and Theta Fuel (TFUEL). Currently, THETA is trading at US$0.81, with a market capitalization of approximately US$810,000,000. Meanwhile, TFUEL is trading at US$0.035, with a market capitalization of approximately US$212,000,000.
The Theta Mainnet 2.0 is enriched with the TFUEL inflation incentive, which involves a 5% annual reward for Theta staking. This reward is given to holders who keep the blockchain network secure through Theta’s multilevel-BTTA consensus design.
With TFUEL, users can integrate Theta’s P2P video delivery protocol into their infrastructure, providing additional rewards to end users for their participation in the network.
In addition, the protocol rewards Theta’s edge nodes after the launch of Mainnet 3.0 in June 2021. Edge nodes are another important participant that provides video delivery services.
The improved economics include new TFUEL inflation, staking, and burning. Meanwhile, network transaction fees and smart contract fees are also burned, so Theta Fuel is withdrawn from circulation.
As additional information, you can also read various other interesting information in the collection of articles on INDODAX Academy.
INDODAX Academy presents a variety of materials covering various levels, from basic concepts to more in-depth aspects related to blockchain technology.
Conclusion
In conclusion, Theta has demonstrated a leading role as a pioneer in realizing the blockchain revolution in the entertainment industry.
Focusing on fair rewards and a balanced tokenomics model, Theta aims to improve the quality and speed of video streaming globally.
Through its innovations, Theta has given hope to change the entertainment surfing experience positively by applying blockchain technology.
Invest in Theta Crypto Asset on INDODAX
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