What is Theta Network? Everything You Need to Know
4 Sep 2023 by Crypto Presale 4 min read
What is Theta Network? Everything You Need to Know

In a world where screens come alive, video streaming has evolved into an industry of immeasurable worth in the past years. Live video streaming encapsulates the allure of broadcasting and integrates it together with the freedom and spontaneity that viewers cherish.

Interestingly, video streaming hasn’t always been what it is today. We are where we are today all thanks to YouTube and Twitch (Formerly JustinTV) for spearheading the journey. As a testament to how far live video streaming has come, did you know it commanded an amazing two-third of internet’s traffic in 2015 and ranked number one category by traffic share last year? Yes it did, according to Sandvine’s report.

Amidst all these reports, the industry is far from perfect. We’ve all been there, paying premium fees for video streaming services, only to be subjected to buffering and low quality.

So, what’s the solution?

According to Theta Network (THETA), the solution lies with blockchain powered video delivery.

Is this really the solution? Well, let’s take a look at a comprehensive look at Theta Network and what they’re building.

An Overview of Theta Network (THETA)

Imagine if Web3 and streaming had a child, that would be Theta Network.

As we know, traditional video streaming services suffer from something called “Last Mile” delivery issues, a concern shared by the Content Delivery Networks (CDNs) they depend on. CDNs require many data centers to be built across the world for seamless video delivery; however, the centers are limited.

Theta Network knows this hence why they leverage blockchain technology to create a Peer-to-Peer delivery network where users are incentivized to contribute their surplus computational power and unused bandwidth resources to address the Last mile delivery issues.

Content providers are empowered to create decentralized applications (dApps) tailored to their specific audience on Theta Network because of its open-source model. This ecosystem of dApps accommodates diverse forms of entertainment, spanning from movies, television, and music to esports, live streaming, and educational content. 

Notable video platforms are running on the Theta Network, including industry names like Samsung VR, Cinedigm, Shout! Factory, and THETA.tv.

How Does Theta Network Work?

Theta Network was primarily launched on the Ethereum Blockchain and it’s not operating as a full Blockchain network itself.

Within this ecosystem, three pivotal entities interact: users, validators, and edge nodes.

  • Users: These are the consumers of video content on the Theta Network platform. They have the unique opportunity to channel their surplus computing resources and bandwidth into the network, effectively transforming into individual edge nodes.

This contribution aids in relaying video streams to fellow viewers, thereby diminishing dependence on CDNs.

  • Validators: Theta Network runs on PoS (Proof-of-Stake) consensus mechanism hence why they have validators whose primary responsibilities encompass validating transactions and safeguarding the network's integrity.

Like every other blockchain network running on PoS, selection as a validator hinges on the amount of Theta Tokens (THETA) the validator has staked.

  • Edge Nodes: The video transmission sequence on the Theta Network encompasses several phases. Content creators initiate by uploading their videos onto the network, where the content is then transformed into diverse quality tiers and disseminated across the network's array of edge nodes.

Upon a viewer's request for a specific video, nearby edge nodes collaborate to relay the stream, thus minimizing latency and enhancing the streaming quality.

Theta Network’s Dual Token Economy

The Theta Network features two tokens, THETA and TFUEL:

  • THETA: THETA is the governance token for Theta Network. It provides stakers the opportunity of becoming a validator on the network. THETA has a total supply of 1 billion tokens and a market cap of over $627 million. Holding THETA enables performance in governance within the Theta ecosystem.

  • TFUEL: This is another utility token in Theta ecosystem. To bolster engagement and ensure the network's robustness, both users and edge nodes are rewarded with Theta Fuel (TFUEL), the utility token for Theta Network. Users earn TFUEL for sharing their resources, whereas edge nodes receive TFUEL for adeptly relaying video streams. Moreover, content creators are also duly compensated with TFUEL in recognition of their contributions.

TFUEL has a total supply of over 6 billion tokens and a market cap of over $200 million.

Theta Network Customized Applications

  • Theta Network Wallet: If you’re aiming to store your tokens (THETA and TFUEL) in a Decentralized wallet, then downloading an official Theta Network wallet is a must.

The wallet is available via mobile apps (IOS and Android) and web browser’s extension.

  • Theta Tv: Formerly known as SLIVER Tv. This is Theta network’s Esport entertainment platform where content creators can earn TFUEL from viewers’ subscription. 

  • ThetaDropNFT: It’s an NFT marketplace where NFTs (Non Fungible Tokens) minted on Theta network are traded for TFUEL or stablecoins (USD). It was launched in summer of 2021.

How to Buy THETA 

Both THETA and TFUEL are widely available on major Centralized and Decentralized Exchanges. So if you want to purchase, follow these steps:

  • Choose a Platform: Pick a cryptocurrency exchange that supports THETA and or TFUEL tokens (e.g. Binance, Kucoin, Kraken).

  • Create an Account: Sign up for an account on the chosen exchange.

  • Verify Identity: Complete identity verification as required by the exchange.

  • Deposit Funds: Deposit funds (usually in a major cryptocurrency like Bitcoin or Ethereum) into your exchange account.

  • Search for THETA or TFUEL: Find THETA or TFUEL token and its pairs on the exchange and select it.

  • Buy: Choose the amount of THETA or TFUEL you want to buy and place an order.

Final Words

Theta appears to be filling a hole in the video streaming industry, providing a decentralized approach to the state of video streaming. This approach not only enhances video quality but also effectively addresses the prevailing infrastructure challenges.

Consequently, there’s a growing demand for THETA and TFUEL in the market. Hence why Video streaming is poised to become something huge in the coming years.

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This article is intended for educational purposes and is not financial advice.