Theta: Everything You Need to Know

Annie Li  Apr 09, 2021 17:54  UTC 09:54

3 Min Read

Theta network

The Theta network was created by Theta Labs. This project aims to use blockchain technology to provide decentralized peer-to-peer video delivery for online video streaming and allow users to share any type of content and data and computing resources on a global scale.

The Theta mainnet operates as a decentralized network in which users share bandwidth and computing resources on a peer-to-peer (P2P) basis. For a project that was launched in the first quarter of 2019, the journey to the elite range has shown how sustainable the network's offering has been and its adoption by investors around the world.

The difference between the Theta network and traditional streaming

At present, the traditional streaming media industry mainly relies on Content Delivery Network (CDN) to transmit and deliver content. In order to allow global subscribers to access content in a timely manner, most of the web traffic on the market such as Facebook, Netflix, and Amazon have set up multiple CDN server base stations around the world.

However, the expensive construction cost of building server base stations and the very high cost of using CDN make CDN become one of the main pain points of streaming media transmission today.

The Theta network was created to solve this pain point in the traditional audio-visual market. The Theta network can reduce the load on the content distribution network by placing certain content on Theta's blockchain network, thereby reducing the bandwidth cost of content distribution.

Dual Token mechanism

In order to pay for data transmission, the Theta network uses an operating pass called Theta Fuel (TFUEL). This has a similar function to the gas fee on Ethereum. Streaming media platforms will encourage users to share video content in the form of rewarding TFUEL tokens.

The Theta Fuel (TFUEL) currently has a circulation of 5,270,590,400 TFUEL, with a market value of up to $1,990,333,036.

Another native token of Theta Network is THETA. This is a governance token that lets users participate in THETA operations and obtain benefits. It aims to help the community manage the Theta blockchain and control its future development direction.

The total supply of THETA Token is fixed at 100 billion, and the current market capitalization is as high as $12,677,420,955.

Operating mechanism

By encouraging users to share their computer memory and broadband resources, the Theta network will reward THETA tokens to user for assisting in attracting viewers, increasing revenue, and providing different content and viewing experiences.

Thus, providers become the cache node of the streaming media platform, effectively solving the problem of low performance that can sometimes be observed in the traditional media streaming industry. 

In exchange for sharing excess bandwidth and resources and participating in the Theta network, viewers earn rewards under the form of Theta Fuel.

Future outlook

Theta’s Mainnet 3.0 launch, which was previously anticipated for this April, has been pushed back to June 30, 2021. 

This network upgrade will provide some benefits which will feature Elite Edge Nodes and TFUEL staking and burning.

Image source: Shutterstock

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