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Theta Network — Decentralized YouTube

Humans view a TON of video content. YouTube alone has 300 hours of video content uploaded to it every hour and millions of people tune into Twitch.tv to watch people play their favorite video games. In this article we’re going to be taking a look at Theta Network. The next generation of content delivery network that aims to decentralize the content ecosystem and also distribute value to those who view the content.

 

what is theta network

 

Problem and the Theta Solution

With the content delivery networks that are used for video streaming today many viewers around the world suffer from low quality streaming while the content creators themselves earn reduced rewards due to the organization of the system and high costs of maintaining it. Because of that organization the publishers of the content are solely responsible for the maintenance of the network which leaves less profit to give to those who make the website worth visiting in the first place.

 

 

Theta Network’s solution is to decentralize the content delivery network. This delivery structure removes the high costs of maintaining a centralized delivery platform, frees up more capital to be distributed to creators, and opens up new avenues of payment to reward those who view the content and maintain the network.

With Theta instead of a content producer uploading videos to a centralized database the viewers with free computer resources handle the tasks of providing the video files to other viewers. Viewers are compensated for their joining of the network, creators are able to directly earn rewards from viewers, and creators of such networks are then able to free up capital they would have used for centralized maintenance to pay content creators and innovate.

 

 

This entire system would be built off of the secure payment structure of blockchain technology that would be used to distribute the tokens that pay everyone within the network. Below we go through and take a more concentrated look at each of the players in this ecosystem.

The Network

Viewers are the cornerstone of the system as they would be the ones consuming the content, providing engagement with the videos that are being watching. In the system, viewers are rewarded through their viewership and may also be rewarded from viewing advertisements. Those rewards come in the form of Theta tokens.

Next, we have the content producers themselves. The video creators and streamers are the producers of the network and are rewarded for creating videos with Theta tokens. Lastly, there are advertisers. They pay to promote goods and services on the network and through videos. The currency used to purchase ad time is Theta.

 

 

Moving on to those who aren’t watching or producing content to be seen we have the backend system that makes it all possible the nodes. In the Theta Network, the nodes are used to run the blockchain and also for the decentralized viewing of video content. The nodes that are used to share video content are known as “caching” nodes and are made from individuals that share their computing and bandwidth resources to provide video streaming content. Those nodes are compensated with Theta for the resources they provide to the network.

The other type of node that runs the blockchain is known as a guardian and validator nodes and are used to secure the blockchain and validate blocks in the blockchain respectively. These nodes are also compensated via Theta tokens. For a full breakdown of how nodes function, the algorithms used to protect the network, and the reward process please see the updated Theta Whitepaper. So far I have only mentioned payment with Theta but the Theta blockchain has two tokens that it will be using.

Theta and Gamma

Theta much like other projects has sought a dual currency system for its blockchain. Those tokens are Theta and Gamma. Theta in the network will be used for staking, security, and governance of the Theta network and individual operations will be powered and paid for with the Gamma token.

One of the partners of Theta is Sliver.tv where the Theta token is already actively in use as part of the platform. Overall the goal of Theta is to expand this network with their mainnet launch and have their full ecosystem up and running. Once again that ecosystem consists of viewers, streamers, advertisers, and nodes.

Outlook

To understand the plans of Theta and what will be going on in the future we first have to look to the developments that occurred in Q4 2018. On November 11th 2018 Theta released their 1.0 version of the Theta Mainnet to Github which contained several advancements for the project. The first of which was the introduction of Theta’s upgraded consensus mechanism called Multi-Level BFT (Byzantine Fault Tolerance) which is a modified version of Byzantine Fault Tolerance. The Theta team describes the changes and consensus as one that “allows thousands of nodes to participate in the consensus process, while still supporting very high transaction throughput.”

Next, the updates saw the introduction of full support of Turing-Complete smart contracts to the Theta code. With that change the comes a smart contract runtime environment that is compatible with the Ethereum Virtual Machine. What that means practically is Solidity based Ethereum smart contracts can be ported over to the Theta ledger.

Lastly for the updates to the code the team built native support for off-chain payments. The solution the team created was built specifically with video streaming and payments in mind. With the system a user can view and pay for video content pulled from multiple nodes without the need for on-chain transactions. This innovation will improve the performance of the blockchain when its functional as those payments won’t be backing up the ledger.

Now let’s move onto the future of the project, along with the release of the code the team also outlined mainnet launch for the Theta blockchain. First off, the launch will take place on March 15th. That of course begs the question of if the code is finished why aren’t they launching sooner. Theta provides several reasons. Theta’s partners like Samsung VR, MBN, and CJ Group and others that have yet to be announced have provided feedback to Theta that requires other “extensions” to the platform that the team would like on their before officially launching. Next, the token swap from the Theta ERC20 token to the native Theta is a large endeavor and very important to holders. Theta assess based that exchanges would not be prepared for the swap until after the New Year. Lastly, Theta wanted to make sure they had thorough code audits, security and scalability testing completed before the mainnet launch.

When the switch occurs on March 15th the existing Theta ERC20 tokens will be swapped for Theta native tokens at a 1:1 ratio meaning the supply of 1 billion Theta will be maintained for the mainnet. Now, for the Gamma tokens, an initial supply of those will be distributed at a ratio of 5 for every Theta token held.

Price

Theta is currently traded at a price of 1233 Sats or $0.045. The total supply of the token is 1 billion and the circulating supply is sitting at 708 million. That puts the market cap of the project at $32 million. 24 hour volume on the token across exchanges was $1.7 million.

 

 

Exchanges

There are several exchanges that offer pairings for Theta with the highest volume being Coinbit, Bithumb, Binance, UPbit, and Huobi. Coinbit, Bithumb, and UPbit all offer KRW pairings for Theta and the exchanges have 36%, 25%, and 8% respectively of the daily volume. Binance’s highest volume pairing is with BTC at 11% daily volume. Lastly, Huobi’s highest pairing is its USDT pairing at 8% daily volume.

Coinbit — https://www.coinbit.co.kr/

Bithumb — https://www.bithumb.com/

Binance — https://www.binance.com

UPbit — https://upbit.com/

Huobi — https://www.hbg.com

Community

To learn more about Theta please see the following links:

Website — https://www.thetatoken.org/

ANN — https://bitcointalk.org/index.php?topic=2451089.0

Twitter — https://twitter.com/Theta_Network

Whitepaper — https://s3.us-east-2.amazonaws.com/assets.thetatoken.org/Theta-white-paper-latest.pdf?v=1547162984.773

Conclusion

There are of course several projects trying to take a bite out of the media pie through decentralized projects. What makes Theta Network stand out from all the others to me is their partnerships, advising team, and existence of an up and running streaming platform to launch off of. With the mainnet release coming up in March of this year it would be silly to not have Theta on your radar.

Thank you for reading today’s article! As always follow me on here or on Twitter @thant1194 or on InvestFeed @thant11 in order to stay up to date on all my articles as I release them. I am not associated with the Theta team and am a holder of their token. Thank you again for reading. I have to return some video tapes.