The Theta Network and their Theta.tv platform offers an alternative to traditional video delivery services. Current streaming sites rely on resource-heavy centralized models. While great for control, these systems feature specific points of failure that can bring down the entire network. During times of high usage, all traffic remains routed through those central servers. In contrast, the Theta Network leverages blockchain technology to create a distributed network of caching nodes.
Peer-to-peer media sharing is not a new concept – with Napster emerging in 1999. Unlike the file sharing sites of the past, Theta doesn’t directly provide content. Instead, their network provides infrastructure for eSports, streamers, and video delivery. Theta users earn TFUEL by engaging with the network – watching content and providing a portion of their upload capacity to the network. In theory TFUEL operates as Theta’s internal currency – as opposed to THETA, which is a more traditional cryptocurrency.
THETA Versus TFUEL
Users that earn TFUEL within the Theta.tv platform can use it in several ways within the Theta ecosystem. Watchers can donate their TFUEL to streamers in much the same way that users donate on Twitch. It also serves as a currency to pay for subscriptions, further boosting their preferred content creators. Theta’s shop also provides unique non-fungible token rewards for TFUEL in their shop. Yet, as TFUEL is readily tradable in traditional exchanges, it also has a real-world value.
Theta’s other token, THETA, provides the transactional infrastructure for the network. As a proof-of-stake token, it creates more traditional validator nodes. Staking THETA allows investors to participate in governance mechanisms moving forward. THETA’s volume is capped at 1 billion coins, but TFUEL will continue to be produced – and distributed – based on the amount of THETA staked.
The Internal Theta Network
Theta’s stated goal is to avoid end-user payment requirements in TFUEL. As such, content platforms will provide the necessary TFUEL to power the network. This isn’t far removed from the traditional model, with platforms providing the necessary resources, as they have the most to gain from high user engagement.
To offset the constant generation and distribution of TFUEL, the Theta Network also burns 25% of each payment. With the release of their 3.0 mainnet, Theta now must attract content providers. Thus far, they’ve done an incredible job, attracting providers like Lionsgate and SamsungVR.
Article By: Adam Stone