What is cryptocurrency Theta Network (THETA) and how does it work?

What is Theta Network (THETA)?

Theta is a purpose-built blockchain for decentralized peer-to-peer video delivery. Traditional video streaming services suffer from the so-called “last mile” delivery problem faced by the Content Delivery Networks on which they rely. CDNs require data centers to be built around the world close to the viewers, but as these data centers are limited in number, they’re not close enough to most viewers. This creates bottlenecks in the streaming delivery pipeline which can lead to choppy streams and poor picture quality.

Theta’s solution is a peer-to-peer network in which viewers are incentivized to share their excess computing and spare bandwidth resources. This addresses the last mile delivery issue as viewers’ devices are much closer to each other than to CDN data centers.

The network and protocol are open source, meaning anyone can build on the Theta blockchain. Content providers are able to develop decentralized applications which are specialized for their audience. DApps on the network can provide a range of entertainment types, such as movies and TV, music, esports, live streaming, and distance learning. Video platforms already running on the Theta Network include Samsung VR, Cinedigm, Shout! Factory, and THETA.tv.

How Does Theta Network Work?

The Theta Network consists of three types of nodes. Edge Nodes are the most numerous and are hosted by Theta community members. They contribute bandwidth or help facilitate data delivery and edge computing in general. The release of Theta’s peer-to-peer “EdgeCast” technology significantly improved the capability of the Theta Edge Network. The network is now capable of caching and relaying live stream video data globally, as well as capturing live video and transcoding it in real time.

Enterprise Validator Nodes are a small group of companies that propose and produce new blocks in the chain. A larger group of community-run Guardian Nodes then seal blocks and check that Validator Nodes aren’t acting maliciously.

Theta employs a dual token system so that the utilities of each token can be kept separate. Theta Token (THETA) is the protocol’s governance token and is staked by Validator and Guardian nodes. Theta Fuel (TFUEL), on the other hand, is the “gas” token used for operations on the network such as interacting with smart contracts. Edge Nodes earn TFUEL for sharing resources and relaying video streams.

Who Are The Founders of Theta Network? (History of Theta Network)

Theta was founded in 2018 by CEO Mitch Liu and CTO Jieyi Long. Liu gained a degree in computer science and engineering from MIT, as well as a master’s degree from the Stanford Graduate School of Business. He has also co-founded various other projects, such as mobile social gaming studio Gameview Studios, advertising and app monetization platform Tapjoy, and live streaming dApp THETA.tv.

Long has a PhD in computer engineering from Northwestern University and co-founded THETA.tv with Liu. He has developed various patented technologies including video game instant replays and virtual reality live streaming. The Theta leadership team also includes CPO Ryan Nichols who was previously Director at Tencent for the Wechat app.

The project has a range of investors, such as Samsung, DHVC, IBC, and Sony Innovation Fund, while Theta’s media advisors include YouTube Co-founder Steve Chen and Twitch Co-founder Justin Kan.

What Makes Theta Network Unique?

Theta’s innovation is to bring the benefits of blockchain to the video streaming industry. This makes video delivery decentralized, thereby improving its quality. The peer-to-peer network eliminates infrastructure bottlenecks as data needs continue to rise. It also creates a sustainable ecosystem in which network users are incentivized to participate. This is powered by a unique dual token economy in which rewards encourage users to both consume network content and share network resources.

The project introduced ground-breaking technologies, such as Multi-level BFT, a modified Byzantine Fault Tolerant consensus which facilitates high transaction throughput; Aggregated Signature Gossip Scheme, which reduces messaging complexity; and Resource-Oriented Micropayment Pool, a double-spend resistant off-chain pool purpose-built for video streaming.

What’s more, the protocol is open source, enabling developers and partners to build dApps on the Theta blockchain. The Theta team’s own THETA.tv was the first dApp to be launched on the blockchain and has been followed by Samsung VR, Cinedigm, Shout! Factory, Pandora.tv, and Play Labs.

What Gives Theta Network Value?

The value of Theta Network derives from its benefits for the streaming industry, namely its facilitation of a decentralized peer-to-peer network for video delivery, which results in higher quality streaming and mitigation of the high costs for video delivery from third parties.

The THETA token, on the other hand, is valuable for its utility in the dual token Theta Network economy. Guardian and Validator nodes require THETA for staking, while it is also important as a governance token.

The project has attracted well-known contributors. Companies running Enterprise Validator Nodes include Google, Sony, Samsung, and Binance. Meanwhile, Theta has a range of strategic partnerships, such as with Metro Goldwyn Mayer, Lionsgate, NASA, Fail Army, and the World Poker Tour. The popularity of these partners could lead to more users for the Theta protocol, which could make the project and its THETA token more valuable in the long term.

How Many Theta Network (THETA) Coins Are There In Circulation

THETA has a capped max supply of 1 billion tokens, all of which have already entered the circulating supply. The tokens were distributed among network participants, the THETA team, and a reserve pool.

Other Technical Data

As of July 2021, there were 16 Enterprise Validator Nodes, including Google and Samsung, more than 3,600 Guardian Nodes, and about 135,000 Edge Nodes. Theta’s Multi-level BFT mechanism enables a small number of Validator Nodes to produce blocks as fast as possible, while a much larger group of Guardians finalize the chain at regular checkpoint blocks. This means a large number of network participants with a high transaction throughput.

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How is The Theta Network Secured?

The security of the Theta Network is guaranteed by the huge number of nodes participating, which makes the network much more difficult for attackers to compromise.

How To Use Theta Network?

Theta community members can stake THETA in order to become Guardian Nodes. They can also host Theta Edge Nodes by contributing their computing resources for video capturing, transcoding, caching, and relaying.

The THETA token is used for staking as Validator and Guardian nodes, as well as for participating in protocol governance.

How To Choose a Theta Network Wallet?

THETA tokens can be stored in the project’s own Theta Wallet, which is available for Android, iOS, and web.

There are also plenty of other places you could store your THETA and the wallet you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of THETA for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of THETA or more novice users.

Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your THETA, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.

Kriptomat offers a secure storage solution, allowing you to both store and trade your THETA tokens without hassle. Storing your THETA with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling THETA, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

Theta Network Proof of Stake

The Theta blockchain uses a Proof of Stake consensus mechanism, with both Validator and Guardian nodes needing to stake THETA to participate. The Multi-level BFT mechanism solves the so-called “impossible triangle” by achieving a balance between consistency, transaction throughput, and decentralization.

Conclusion

The Theta project provides some much needed improvements to the current video streaming industry by improving video quality and meeting ever-growing data needs without the bottlenecks in the current infrastructure.

The unique dual token economy separates token utilities and solves potential consensus issues, in a system that incentivizes sustainable long-term network participation. While TFUEL is used for paying for operational costs and rewarding participants, THETA is used for staking and governance.

Video streaming has grown to become a huge global industry over recent years, and with prominent Enterprise Validator Nodes and partners, Theta Network and its THETA token could become a valuable part of this industry.

Theta Network FAQ

Who can run an Edge Node?

Anyone can set up an Edge Node by downloading the app for Windows or macOS, or running the command line version on Linux. This enables users to earn Theta Fuel (TFUEL) by relaying video streams over the Theta Network in order to support platforms such as THETA.tv. They can also broadcast their own video streams for distribution over the network.

Who can run a Guardian Node?

Running a Guardian Node means installing the software through GUI, CLI, or Google Cloud Marketplace. Users need a minimum stake of 1,000 THETA and the hardware requirements are an internet speed of 5Mbps, CPU of four cores or more, and memory of at least 8 GB.

How to Buy Theta Token?

Buying THETA is as easy as visiting Kriptomat’s how to buy Theta Network page and choosing your preferred method of payment.

How to Sell Theta Token?

If you already own THETA and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

Theta Coin Price

THETA price is influenced by a lot of the traditional factors such as project news and development details, market sentiment, the flow of cryptocurrency on exchanges, and the economy in general. 

THETA price is also affected by the demand for governance rights over the project and demand for TFUEL from the Validator and Guardian nodes who require THETA for staking. Another fundamental influence is the popularity of the video streaming industry in general and the improvements blockchain brings to it.

The current Theta Network price is EUR.

The 24-hour trading volume of THETA is EUR. THETA is currently ranked of all cryptocurrencies by total market cap, with a market cap of EUR. It has a circulating supply of .

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