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A Beginner’s Guide to Theta Network

Theta Network is a blockchain-based video delivery platform. Its goal is to enable users to earn token rewards while watching video content.

Blockchain technology is steadily entering every aspect of our lives. It won’t be long until everything we do, including watching our favorite series, will link us to decentralized public ledgers. In this regard, Theta Network aims to establish a strong market position for when tokenized video consumption will be standard.

In this guide to Theta Network, we look closer at one of the latest innovations on the blockchain. Read on to discover its features and potential!

What Is Theta Network?

Theta Network claims to be the “next-generation video and entertainment blockchain” that consumers like you can power. Its goal is to reduce the centralization in today’s video streaming systems. Using blockchain technology and live streaming systems should provide viewers with more control over video content quality selection.

The project has its native token, the Theta Token (THETA), which powers a peer-to-peer network. Its mission is to increase video quality via resource sharing and create a rewarding incentive system for its holders.

Theta aims to improve the viewing experience for consumers by eliminating middlemen, such as ads and promotions. This way, it should also benefit content creators and give them more control over their work.

Theta consists of interconnected content distribution networks (CDNs) that share the same bandwidth. This enables the online streaming of high-quality video. Furthermore, this network operates on the Theta Blockchain, which encourages users to join the network. In return, it offers them Theta tokens as compensation.

Additionally, Theta offers another peer-to-peer mesh network to enhance the CDNs’ streaming capabilities. Users can link to this network and lend their devices as “caching nodes.” This way, they store video data as cache memory and ensure its long-term existence.

Consequently, the quality of streaming video improves as the number of caching and relaying points increase. In return for their services, users receive THETA tokens, which they can later exchange for real money.

How Theta Network Works

Theta creators advocated using blockchain technology to decentralize services built on Theta, but many blockchains are slow. Also, most video streaming services on the Theta Network use centralized servers. However, the decentralized nature of the cache makes content censorship difficult. Finally, the team has issued several features to make the Theta blockchain ideal for video streaming. The most important ones are:

Dual-Level Consensus Mechanism

To increase throughput, Theta blockchain splits into two layers. For example, the first one consists of “validator committees,” small groups of a maximum of 20 validating nodes. Also, they operate on a modified Byzantine Fault Tolerance consensus algorithm.

The validator committees seek to construct chains of blocks in the shortest possible amount of time.

Alternatively, the second layer consists of several “guardian nodes.” They are responsible for ensuring consensus by confirming validation at preset points.

This dual-consensus system enables Theta to increase throughput speed and decentralize its content delivery approach.

Resource-Oriented Micropayments Pool

Streaming videos requires an off-chain “Resource Oriented Micropayment Pool” (ROMP). Also, the platform may use off-chain transactions to withdraw from a user’s off-chain micropayment pool, which is double-spend resistant.

Streaming a video to oneself would be impossible because the network would not allow it. It’s more probable that a malevolent user will benefit the network. Therefore, this checkmate is possible because users don’t get to pick which peers get their data.

What Is the THETA Token?

To utilize the Theta Network, users must share their cache and bandwidth with each other. The system requires this high level of commitment.

Theta Network operates a double-token system that encourages participation. Its native token THETA works as a reward for nodes who contribute to the network.

Here is a simple explanation of how it goes into circulation:

In exchange for their participation, viewers can choose to earn tokens from advertisers. Next, they can give them to their favorite influencers and content creators. So, the platform uses these tokens to pay for advertising campaigns for influencers, streaming websites, and viewers.

Alternatively, Theta Network has a second token, TFUEL, which only guardian and edge nodes can receive. TFUEL has a larger supply and can only increase in value by 5% per year. Usually, participants to the network use it as a tip or for subscription and in transactions.

At the time of writing, THETA was trading for $7.14. Also, it had a market cap of $7.12B and ranked 31 amongst cryptocurrencies in terms of market cap.

Where to Buy THETA

You can buy THETA tokens on cryptocurrency exchanges such as Binance, Bithumb, and Huobi. The trade of theta tokens is prevalent in the Korean market.

You can store THETA in any crypto wallet compatible with ERC-20 tokens. Alternatively, you can keep your tokens in the online wallet that Theta Network offers.

Is Theta Network Safe?

Theta Network is relatively secure. However, the platform has received criticisms in the past from industry and users. For instance, some complain that the platform’s revenue has severe limitations. Also, consumers do not appreciate that their deposits are not returnable.

Additionally, many dislike that Theta exploits its consumers’ bandwidth and only returns a meager percentage of the value they offer.

Lastly, Theta Network deterred some of its users when it delayed the release of its 3.0 mainnet. Furthermore, this happened because the developers rushed to integrate an NFT marketplace. As a result, THETA’s value plummeted by 25% in a single day.

Final Thoughts

Blockchain technology has effectively reshaped the global digital economy as well as the media and entertainment business.

Theta Network promotes a decentralized peer-to-peer model to solve scaling, transparency, and security issues. Furthermore, Google’s involvement in Theta’s decentralized infrastructure has made it an even better investment prospect.

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Nevertheless, the project has a long way before it becomes the standard service for decentralized video streaming. For now, it should address industry criticism and user complaints to improve its services.

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