It is better to start with the Theta network before going into the Theta coin. Well, if we consider streaming and web3 as the parents, then Theta Network is the child. But of course, there is more to it, and it is a bit more complicated than we think it is. Blockchain technology is believed to alter the face of content distribution and video streaming.
But if you are looking for a complete transfer of authority, then you cannot depend on the technologies which are inside the centralized system. This is where the Theta network comes in and changes it.
Peer-to-peer technology forms a network where the participants can agree upon the works of the network or what it will do. This is like adding one more layer to it and giving a lot more to the community itself. Theta network takes the use case and then applies it to streaming.
What is theta network?
Theta network is basically a blockchain network that focuses on entertainment and media. It aims for the smooth performance of high-bandwidth, free, and seamless content delivery. It allows drawing developmental revenues from the media platforms that are already existing, like esports, TV, movies, and music. Further, it helps in cutting content delivery CDN fees.
They also reward their customers for sharing the bandwidth or storage on other devices like mobile phones, PCs, and Smart TVs. They can also earn theta as a reward when they share videos through a DApp, content transcription by Theta Network, and Edgecast.
This network allows the developer to build decentralized exchanges, decentralized autonomous organizations (DAO), and NFTs. All f this has the potential to disrupt the traditional media platforms that are centralized. This particular infrastructure gives seamless support to Turing smart contracts.
How does theta network work?
Theta was primarily launched as an ERC-20 token; the project uncovered its own mainnet blockchain in March 2019, followed by a private token sale of $20 million in 2017. Theta is now a standalone project, but it still remains an ERC-20 complaint.
That means Theta can leverage the massive user base as well as the network benefits of Ethereum while they deploy the proprietary technologies and improve the streaming delivery and improve end-user experience.
Theta network works on the modified proof-of-stake(PoS) mechanism, along with another multi-level model known as the Byzantine Fault Tolerance (BFT) model. This network will provide security that is a lot similar to Ethereum and Bitcoin but with faster and higher trades and transactions per second.
There are three different sections of validators that sure this multi-level unique BFT consensus mechanism. To begin with, it has a committee of twenty to thirty Enterprise Validator nodes, and then comes a layer with thousands of or more Guardian nodes that are community-based. And lastly, the Edge nodes allow users to access relay video streams easily.
Enterprise validator nodes
These enterprise nodes are run by Samsung, Google, Gumi Crypto, Sony Europe, Blockchain Ventures, and Binance. Basically, it is used to validate the transactions on these networks by these companies as they stake Theta tokens. This is the first step to ensure the security of the network, and it is required to stake a million Theta coins by these companies.
Guardian nodes
Guardian nodes are a set of people who make the validator committee. They create a chain of blocks and also check the validity of the chain. To validate a block, it is required that two-thirds of the Theta guardians validate that block.
Edge nodes
Along with the Guardian nodes and Enterprise Validators, Edge nodes are also used by Theta Networks, which are run by community members. This technology of peer-to-peer “EdgeCast” was introduced in the 2.0 mainnet launch of Theta. It allows the users to get live relays of videos and also transcodes the video content, along with distributing excess bandwidth.
Primary features of Theta Network
- It is a network that has got three different types of nodes, Enterprise Validator, Edge, and Guardian.
- The blockchain that Theta uses allows developers to create decentralized applications.
- With the official Theta wallet app, users might be able to receive or send THETA for streaming videos.
- BFT is a PoS governance technique that maintains the network that has been distributed to machines that are running Theta Network.
- Theta network uses two variations of tokens. It pays its users to expand the computer bandwidth via TRUEL. The other one is the Theta Token which is the governance token of the network.
Pros & Cons of Theta Network
Let’s begin with the pros first.
- Online video streaming is decentralized on the internet.
- It plans to cut the steaming video cost by almost 80%.
- The main motive of this project is to improve the quality of videos while video broadcasting.
- It is collaborating with renowned platforms like Samsung Virtual Reality.
- They are consulting experienced personnel in the video streaming industry, like the co-founder of YouTube, Steve Chen.
Now we will discuss the cons.
- Theta network has low liquidity.
- This project is in the initial stage, and it cannot be said if it is a reliable platform or not.
- The initial coin offering is centralized and private, which negates transparency.
- Theta.TV requires a mentionable level of video buffering.
Theta coin and payement
The theta coin mainly takes care of the administration of the Theta protocol. Users can stake it to be a Guardian Node or Validator to help in producing new blocks and also participate in the protocol of the governance process.
The total theta token price is at a constant level of 1 billion. Theta network payment is a very simple and reliable method of paying and accepting money in the form of cryptocurrency.
And it’s a wrap!
Theta is currently focusing on video-on-demand programs and other entertainment-oriented programs. But their vision is to serve as a decentralized network that has an end-to-end protocol for delivering and processing the data that includes app updates, operating systems, and other forms of web content.
This is a relatively new project, and people might think that it is something sort of theta network payment scam, but it is too soon to tell what is going to happen in a few months or in a year.