Theta is a decentralized peer-to-peer network founded in 2017 by Mitch Liu, Ryan Nichols, and Jieyi Long. Theta’s tokens were initially issued as ERC-20 on the Ethereum network.
Even though the network provides its own token, the THETA coin, it also has other purposes. The platform is a decentralized video delivery network and was created to share bandwidth all over the network. Theta’s users have the chance to contribute with extra bandwidth and resources and be rewarded with tokens. The platform also allows people to develop DApps on its smart contract platform.
How does Theta work?
Theta issues two types of coins:
- THETA is a governance token that secures the blockchain and helps users run the network’s features. There are 1,000,000,000 in circulation for the moment, and this is the only amount of tokens the platform plans to issue.
- Theta fuel (TFUEL) is a type of token that users are rewarded with when they watch streams on the network. The more users share content with each other, the more tokens they are given. Being very similar to Ethereum Gas, TFUELs are also used for smart contracts, and the total supply is 5,000,000,000.
Theta’s blockchain is based on a proof-of-stake protocol, and token holders have the faculty to make governance decisions.
Advantages of Theta
- Theta is multifunctional and offers video content and data delivery about music, movies, education, and much more.
- The platform is expandable and interoperable, and it supports the creation of dApps.
- The network has a streaming service called Theta.tv where users are able to post and stream videos.
- Its proof-of-stake consensus mechanism is known as Multi-Level BFT and needs a small group of nodes to vote and make decisions. A set of nodes, called “Validator Committee” gives the first approval for the “Guardian Pool” which is made of thousands of nodes.
Once they confirm the validation, transactions can be added to the blockchain.
- Theta has ongoing partnerships with important names like Google, Samsung, and Nervos, which is a blockchain from China.
Theta has surpassed everyone’s expectations the past year, and there are signs that the cryptocurrency could have a great future ahead.
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