Currency name(s): ERC-20 during the beta testing; Theta Token (THETA) now, used for holding a stake of the network and Theta Fuel (TFUEL), used to hold and transfer value within the network
Genesis Block: January 2018 for Theta Token; March 2019 for Theta Fuel
Total Supply: 1 billion Theta Tokens; around 870 million are currently in circulation. 5 billion Theta Fuel, almost 4 billion are in circulation at the moment.
Algorithm: PoS consensus algorithm, Multi-level BFT, Aggregated Signature Gossip Scheme, Resource Oriented Micropayment Pool Features: low-cost video delivery, decentralized, peer-to-peer
The Theta network is a blockchain technology that was created with a purpose to bring high-speed, high-quality streaming to its users by employing decentralized technology, and all of that at a very low cost to both the media outlets and the users. In essence, the Theta network aims to either improve the current state of high-quality video content delivery or replace it. From its conception, the idea behind Theta was based on Bitcoin and Ethereum, and today it operates in a similar manner. But, instead of storing the data for an indefinite amount of time (as all transactions are stored on Bitcoin blockchain for example), the nodes within the Theta blockchain network are in fact used to transfer data from one end to the other without necessarily storing it. As almost all media outlets and video streaming platforms have limitations when it comes to transferring data between the server and the end-user – for example latency is visible, the video is constantly buffering, or a large number of viewers are watching the same content so it is not available since the server is being overloaded – the Theta network is conceived to solve these issues by creating a blockchain where all users contribute to the overall streaming speeds by lending their computing and bandwidth resources to the network. Of course, for this sign of good faith, the users who opt in are compensated and rewarded with Theta Fuel tokens.
For investors that are curious about the Theta network, a difference needs to be made between Theta Token and Theta Fuel. As we mentioned, the Theta Token is what an investor interested in owning the Theta network should consider holding. On the other hand, Theta Fuel is the unit of value used within the Theta network – and is utilized to manage transactions between viewers and video providers. By having this clear difference between owning and using the network, the team behind Theta wants to bring as many video providers as well as users to use the network, so that the network itself improves.
Unlike other blockchain technologies that are used primarily for completing transactions (such as Ethereum and Bitcoin, among the most notable ones), the Theta network’s primary use case is to cache and transfer data from one point to another by using a worldwide mesh of interconnected nodes which pull the real-time stream from one another. Essentially, the more viewers tune in, the better the signal across all nodes becomes, as all nodes share in the computing and broadcasting resources. However, the downfall of this peer-to-peer approach is that viewers connect and disconnect at random, so as a backup there is a dedicated content delivery network if not enough peers are available.
Regarding the Theta network’s underlying blockchain technology, it is supported by a proof-of-stake mechanism and 3 other algorithms.
Multi-level BFT (short for Byzantine Fault Tolerance) consensus mechanism is used for effectively validating the active chain blocks by dividing them into two levels. The first level, which consists of ‘validator committees’ is used for generating chain blocks, while the second level, consisting of ‘guardian’ nodes maintains the consensus and secures the validation process.
The second mechanism the Theta network uses is Aggregated Signature Gossip Scheme, which is implemented to reduce messaging complexity. Each guardian node keeps the signatures of its neighbors and then shares it onto the network, therefore exponentially increasing the sharing of signatures, and reducing the node-to-node communication.
Finally, the Resource-Oriented Micropayment Pool is a mechanism that allows users to create a micropayment pool from which other users can withdraw funds. It is used for off-chain transactions.
Our Theta network market analysis shows that the Theta Token (THETA) sits at around $0.11 per token, with a market cap of around $100 million. The lowest price for Theta Token was $0.04, while the highest was $0.31 per token. Regarding Theta Fuel (TFUEL), the price now sits at around $0.004 per token. The highest price recorded for Theta Fuel was $0.025, while the lowest was $0.004, and both of these prices occurred this year. The market cap for Theta Fuel is around $16 million. Both Theta Token and Theta Fuel are listed on Binance, where they can be bought and sold using USDT, Bitcoin or Ethereum.
Although Theta is not a standard type of cryptocurrency such as Bitcoin or Ethereum that many are familiar with today, as stated above, the investors interested in the Theta network and the underlying technology should think about what part of Theta they would like to own. If they would like to own a stake in the network, then Theta Token is the best choice. If they would like to own a part of the peer-to-peer value carriers, then Theta Fuel is for them.
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