Every day, roughly more than 1,000,000,000 hours are being spent watching YouTube videos. Put these mind-boggling statistics together with the amount of time used up by Netflix, Twitter, Facebook, Twitch, TikTok, and so on… And you'll soon find that a large portion of our lives is spent consuming content. With trillions of gigabytes used up just to watch cat videos and memes, what if there's a better way of delivering that content to you? Cue our Theta Network review.
While we may not realize it, the logistics of beaming around bright and colorful videos is a very complex one. From one content creator's bedroom, the data is sent to a central server and then back to your computer on the other side of the world.
Imagine then if all that complexity could be simplified through the use of decentralized, peer-to-peer networks to stream and broadcast videos. In that case, read along our Theta Network review to find out if this is the next way forward.
What Is Theta Network?
Theta Network is a decentralized video delivery platform, which utilizes its blockchain network as a peer-to-peer hub for which videos can be cached, and then viewed more efficiently than through the existing centralized models.
Following Ethereum's philosophy of being “the world's computer,” Theta wants to be the world's main caching infrastructure for digital content. While initially built and powered by the Ethereum blockchain, Theta Network has moved onto its own blockchain system.
This was followed by its highly anticipated main-net launch in 2019. Since then, Theta Network has grown rapidly in size, now becoming one of the largest blockchain projects. It is by far the most prominent protocol as far as blockchain-based entertainment and content streaming.
Some of its partners include major companies and brands such as Google, Samsung, Sony, and Binance. A few of its advisors even include former executives from the likes of YouTube, Twitch, and Microsoft.
What Is Theta Network Trying to Solve?
At the time of writing this Theta Network review, they have identified a number of key limitations and problems within the current system of centralized content consumption, or more technically, content delivery networks (CDNs).
Mainly, it revolves around Theta Network trying to solve a lot of the “last mile” delivery problems when it comes to watching videos on your device. There are significant bandwidth bottlenecks with having those videos downloaded on your end, especially at higher resolutions.
Many people nowadays tend to watch content higher than 1080p, such as 4K or 8K resolutions. This high bitrate content isn't always able to stream smoothly with most internet connections, and it's a big problem for people who live far away from the central servers that host all these videos.
Therefore, it can cause immersion-breaking buffering or force the user to watch videos at lower resolutions. Plus, a centralized CDN often offers less revenue back to content creators.
How Does Theta Network Answer This Problem?
Now that we understand the underlying issues with the existing CDN model, our Theta Network review unveils how its blockchain-powered tech can solve it.
In short, Theta's decentralized network wants to encourage users to lend out their redundant computing and bandwidth resources that might otherwise be left idling in order to cache videos. By creating this global peer-to-peer mesh network, the excess memory and bandwidth can be used to ensure a seamless video-watching experience. By lending out their hardware, these users can earn tokens in return (more on that later) for helping out the network.
For those consuming content, a geographically optimized meshing would allow for the videos to be downloaded and streamed faster on your device, which inherently enables videos to load smoothly and at a higher quality than otherwise possible. Moreover, the lack of centralized servers means that there are lower infrastructure costs incurred on behalf of streaming platforms.
How Does The Theta Network Work?
So far then, we've seen in our Theta Network review how they can utilize this peer-to-peer, open-source, and decentralized CDN to provide three-fold the number of benefits – allowing users to earn money by sharing their computing and internet resources, smoother and higher quality videos being streamed back, and significantly lower costs on behalf of platforms. On Theta, partners can build special dApps (decentralized applications) for all sorts of different content that can be enjoyed.
This could be live news, sports, music videos, gaming walkthroughs, and so much more. But how does all this work? There are several key innovations adopted onto the Theta Network to make this happen. The most significant one is what powers its Proof-of-Stake (PoS) blockchain, which is a Multi-Level BFT consensus algorithm. Essentially, this decentralized structure sees the participation of thousands of nodes around the world that are powering and securing the Theta blockchain.
As of writing this Theta Network review, there are 14 Enterprise ‘Validator' nodes, 3,590 ‘Guardian' nodes, and another 34,939 ‘Edge' nodes. From top to bottom, the Validator nodes produce and validate new blocks (up to 8,192 transactions can be fitted onto a single block) before allowing the Guardian nodes to verify them once again and the Edge nodes to approve those blocks. The end goal is creating a secure and decentralized yet high-speed and low-cost ecosystem to run.
What Else Could Theta Network Do?
In the real world, our Theta Network review has found that its entire blockchain could easily run at speeds of at least 500 transactions per second (TPS) on-chain, while the adoption of native off-chain support could ramp up its entire network-wide throughput to far and above 10,000 TPS. This makes Theta one of the most scalable blockchains to date. Yet, the costs are fairly low, as the average transaction – or gas – fees across its network is only a minimum of just 0.000001 TFUEL.
Aside from the Multi-Level BFT, Theta has developed a couple of other novel ideas for its blockchain. One of them is a resource-oriented micropayments pool. This allows users to create an off-chain pool for micropayments, which other users could withdraw for off-chain transactions. There's also the “aggregated signature gossip scheme,” having optimized the way in which signatures are shared quickly across nodes, thus significantly reducing the on-chain communication overhead.
What Are Theta Network's Native Cryptocurrencies?
Theta Network uses a dual-token model to best hone in its on- and off-chain tokenomics and to ensure efficient computation across its entire blockchain. Its two native cryptocurrencies are the THETA and TFUEL tokens. THETA is used as a governance token, where holders can take part in its Proof-of-Stake blockchain by staking them and becoming node validators. This also opens up the opportunity for holders to take part in its governance. TFUEL, on the other hand, is a utility token.
It can be earned by users who contribute their resources to Theta. For every video stream they relay to other content consumers on the network, they can get TFUEL in return. Or, it can be spent within Theta in a few ways, such as paying gas (transaction) fees for deploying or interacting with dApps and smart contracts on the Theta Network. Another alternative way of spending TFUEL is by using it to buy subscriptions for certain platforms or gaining access to special or premium content.
How Are The Tokenomics Like on the Theta Network?
The supply of THETA tokens is capped at 1,000,000,000 THETA, while TFUEL is programmed to have its supply inflate by around 5% every year. As the Theta Network has since moved out of the Ethereum blockchain, its tokens too have migrated from the ERC-20 standard. While writing this Theta Network review, their video delivery platform as a whole has seen explosive growth, with more than 500,000 unique sessions from SLIVER.TV, Samsung VR, and MBN.
As such, the value of both THETA and TFUEL has risen substantially in the past year or so. As for THETA, its price at the time of writing is around $9.98. With a market cap of $9,976,748,387, this makes Theta's THETA the 20th-most valuable cryptocurrency on the market, although it did make it into the Top-10 for a brief moment. This marks a huge year-on-year appreciation in value by nearly 25,000% since its all-time lows in March 2020.
Meanwhile, TFUEL has since captured THETA's subsequent growth to become the 79th-most valuable cryptocurrency with a market capitalization of $1,730,037,517. This is on top of its current circulating supply of around 5,270,590,400 TFUEL. As of this Theta Network review, one TFUEL is worth $0.328244. This price marks an even bigger leap of more than 36,000% in gains from its all-time lows just one year ago in March 2020.
What Do Theta Network's Future Roadmap Updates Look Like?
While Theta continues to expand its broad reach of both content consumers, video creation, and streaming platforms, as well as nodes to complete its end-to-end peer-to-peer global network, our Theta Network review has found quite an extensive roadmap timeline for future improvements to come. Having passed Q1 of 2021, Theta has started embracing NFTs (non-fungible tokens) on its network, which includes the ability to buy, sell, and exchange them through a built-in marketplace.
The next big update should come in the form of ‘Theta Mainnet 3.0', which is bound to launch sometime in Q2 2021, specifically around 48 days after the time of writing. This should see the introduction of more dApps and faster video transcoding or encoding. Q3 and Q4 will be more ambitious, following up the 3.0 update that'll bring new computation to support stuff like games, machine learning, AI, as well as a focus on developing new smart contracts and more dApps.
Theta Network Review – Conclusion
In rounding off our Theta Network review, they've given us great hope for the months and years ahead in pioneering the merger between nascent blockchains and the tried and tested past-time of watching pixels fly by your eyeballs. Its decentralized, peer-to-peer content delivery ecosystem is already seeing tremendous growth, and we should certainly keep a very close eye on new partnerships as creators become keener to hop aboard.
That's not to mention their foray into other, highly lucrative forms of entertainment such as NFTs. We certainly believe that Theta could be the next step in the evolution of watching videos, just as how the idea of online streaming disrupted old-school cable television.
Theta Network Review
- Ease of Use
- Project Values
- Tokenomics Model
- Long Term Sustainability
- Enables smooth and high-quality video streaming anywhere in the world.
- Regular users can earn money (tokens) by sharing unused memory and bandwidth.
- High throughput speeds capable of 10,000 TPS to ensure easy future scalability.
- Very low on-chain transaction (gas) fees.
- Greater robustness thanks to its decentralized P2P model, where significant downtimes can be avoided.
- Dual-token model allows for users to better monetize their cryptos, either for staking and governance, or spending it for fees and microtransactions.
- The current network is more centralized, as nodes are distributed mainly to early token holders and investors.