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Table Of Contents
What is the Theta Blockchain?
The Theta blockchain is a purpose-built decentralized video delivery network and cryptocurrency. This innovative platform provides both technical and economic solutions to the problems facing the streaming sector. As such, the Theta blockchain was designed to incentivize the sharing of bandwidth across the network. Specifically, users gain the opportunity to contribute their excess bandwidth and computing resources in exchange for token rewards.
Theta’s developers attempt to tackle various challenges the video streaming industry faces today via an innovative new blockchain. In particular, the platform’s layout eliminates the bottlenecking of traditional content delivery pipelines. This issue is known as the “last-mile” issue by professionals. It’s a major concern for high-resolution high bitrate 4k, 8k, and next-generation streaming platforms.
Benefits of the Theta Blockchain
Theta users enjoy access to a global infrastructure for video content and data delivery. This open-source project provides esports, music, TV/movies, education, enterprise conferencing, peer-to-peer streaming, and more. Additionally, the decentralized nature of the platform ensures that Theta is powered by users.
Another major benefit of the Theta network is its expandability and interoperability. The network supports the creation of vertical decentralized apps (Dapp). These apps live on top of the platform and leverage its powerful technical toolset. Notably, the first Dapp to launch on the network was SLIVER.tv.
How Does Theta Blockchain Work?
Theta is an ERC-20compliant decentralized video delivery network. This categorization means that Theta users can utilize the Ethereum ecosystem to simplify their crypto experience. Ethereum is the largest Dapp ecosystem in the world and ERC-20 tokens enjoy a massive variety of wallets, DEXs, and games. Theta leverages the security and efficiency of Ethereum and combines it with various proprietary technologies to improve the quality of stream delivery.
The Theta blockchain is the only end-to-end infrastructure for decentralized video streaming and delivery at this time. The blockchain’s design permits maximum functionality in this regard. For example, the system can pull streams from peering caching nodes. This approach allows video platforms to significantly reduce content delivery network (CDN) costs.
Theta tokens are the governance token of the Theta network. They provide users with a host of functionalities. This token is what you use to stake as a Validator or Guardian node, to produce blocks, and to participate in the protocol’s governance. There are 1,000,000,000 Theta tokens in circulation at this time. Interestingly, this is also the total amount of tokens the platform intends to issue.
TFUEL tokens function as the man utility token in the Theta ecosystem. These tokens serve multiple purposes within the network. Primarily, TFUEL tokens incentive and encourage individual users to share their redundant computing and bandwidth resources as caching or relay nodes for video streams.
Theta.tv is the network’s main streaming service. Users can view and post their videos from here. Impressively, this Dapp is set to be included on future Samsung Galaxy phones. The integration will put Theta software on 75 million existing devices. Consequently, this move would give Theta a worldwide user base moving forward.
Theta introduces a new form of the Proof-of-Stake consensus mechanism known as Multi-Level BFT. This style of consensus is much faster than traditional Proof-of-work systems. The Multi-level BFT mechanism utilizes a small set of nodes to speed up approvals.
Specifically, a small group of nodes acts as a “Validator committee.” Once these nodes give the first approval, a much larger group, consisting of thousands of nodes, known as the “Guardian Pool”, fully validates the transactions and adds them to the blockchain. Keenly, this mechanism provides Theta with high transaction throughput.
Resource-Oriented Micropayment Pool
Theta also introduces a resource-oriented micropayments pool to streamline the network process. This protocol creates an off-chain micropayment pool that any other user can withdraw from using off-chain transactions.
History of The Theta Blockchain
Theta entered the market in 2018 following a $20 million private token sale hosted a year prior. The San Francisco-based firm behind this project is Theta Labs. Originally, Theta developers chose to host the platform on Ethereum. Since that time, the firm has gone on to construct a native blockchain.
Theta has seen growing interest from investors. The platform’s Co-Founder and chief executive officer, Mitch Liu is well known in the industry as a pioneering force. Additionally, Theta managed to secure some big-name advisors. These advisors include the Co-Founder of YouTube, Steve Chen, and Justin Kan, the Co-Founder of the gaming streaming platform, Twitch. In November 2018, Tencent Games announced a collaboration with SLIVER.tv to bring Theta rewards to Ring of Elysium players.
How to Buy Theta
Theta is available on many popular exchanges at this time. Binance, the world’s top exchange in terms of market capitalization, offers users easy access to Theta. To utilize Binance, you will need to register for the exchange. There are desktop and mobile Dapp versions available to suit your needs.
The signup process for Binance is simple. The initial part only takes seconds. However, it can take a couple of days to complete your KYC/AML compliance because it requires you to submit a photo ID and await approval. Once your account is active, you need to fund your wallet.
Funding your wallet requires you to load fiat currency onto it and then convert these funds into cryptocurrency, or load Bitcoin or Ethereum directly. The latter option allows you to start trading instantly. If you load fiat currency, you will want to convert it to Bitcoin or Ethereum as those are the two Theta trading pairs offered at this time.
How to Store Theta
Users get a lot of flexibility in terms of how to store Theta. The coin is an ERC-20 token, so you can choose from a huge variety of ERC-compliant options. One of the most popular wallets used to store Theta is Metamask. Metamask is a cryptocurrency wallet and browser add-on. The wallet is the most popular ERC-20 wallet option due to its interoperability and easy installation and use.
If you seek to make a major investment in Theta or if you are planning on HODLing this crypto for long periods of time, a hardware wallet is the best option. Hardware wallets keep your crypto stored offline in “cold storage.” This strategy makes it impossible for online threats to access your holdings. The Ledger Nano S or the more advanced Ledger Nano X both support Theta (THETA).
The Theta Blockchain- Streaming to Meet the Demands of Tomorrow
Theta appears to fill a key niche in the sector. As such, there is a growing demand for this token in the market. For now, interested investors will find it easy to score some Theta tokens and help further this decentralized streaming platform’s goal to provide a better UX for all.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com
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