What Is Theta (THETA): Everything You Need to Know 2022

Theta Network is a decentralized blockchain network for video streaming. It aims to solve the main problems of the streaming industry, reduce the cost of the content delivery network (CDN), optimize the transmission of high-definition video and bitrate, and encourage individual users to share their computing resources to support broadcasts.

THETA is a token that serves as an incentive mechanism for users. Viewers can use it to pay for access to content as a donation tool. Initially, the token was launched on the Ethereum blockchain, but it was transferred to the Theta blockchain after the mainnet launch. The number of tokens is strictly limited to 1 billion, and all were issued initially and are in circulation.

Basic Protocol Concepts

Theta Network is built on three key concepts:

Multi-Level BFT

The advanced BFT consensus mechanism provides very high network throughput (more than a thousand transactions per second) and enables thousands of nodes to participate in the consensus process. This mechanism is called ‘multi-level’ since it provides several levels of security: the first is a committee of validators (in the amount of 10-20 participants), and the second is a protective pool of thousands of nodes that will be difficult for an attacker to compromise.

Aggregated Signature Gossip Scheme

The multi-signature system based on the block hash transfer has low scalability, which is already noticeable with a thousand or more nodes. The scheme used in Theta is designed so that each node collects signatures from neighboring nodes. The volume of transmitted data is small, and information reaches all nodes in the network at an exponential rate. At the same time, data transmission costs are also reduced.

Resource-Oriented Micropayment Pool

The technology allows users to create their own micropayment pool that is resistant to double-spend attacks and enable the counterparty to send autonomous transactions personally to creators. Thus, viewers can, for example, pay for video content, and transactions are carried out not on-chain but off-chain, that is, outside the chain, which significantly increases the blockchain scalability.

Content Delivery Network

Peer-to-peer audio and video content streaming imply a maximum speed close to real-time. This works best when many users tune in to the same stream simultaneously. The bigger the number of users online, the more peer-to-peer resources are available, and the more efficient streams use.

The disadvantage of pure peer-to-peer streaming is that it is difficult to predict its availability. Peers come and go, and their power can also change. The goal of Theta Network is to achieve maximum CDN throughput without sacrificing the quality of service. This can be achieved by ensuring that neighboring nodes effectively identify each other.

Anyone can create a node — clients are available for Windows, Linux, and macOS operating systems. The launch is available via a command line. 

Project Tokenomics

The Theta network uses two types of tokens:

THETA is a main payment tool within the platform, which exists in the amount of 1,000,000 tokens, and new units will not be added. The reason for this decision is to protect against attackers who want to generate enough tokens to threaten the network. Since all the volume has already been generated, the only way to get hold of 51% is to buy them. Still, the price will get higher and higher with each new purchase.

All-Time THETA Price Chart

Gamma is an operational token of the Theta blockchain, whose role is to pay fees for microtransactions. At the time of the mainnet launch, 5,000,000,000 Gamma tokens were generated. Once the multi-level BFT consensus mechanism is launched, validators and guard nodes are required to stake Theta tokens to perform their functions. It is planned to increase the number of Gamma tokens by 5% per year (the rate can be adjusted based on demand).

Theta Fuel (TFUEL). Fuel is used in the form of a TFUEL token, whose functionality is similar to ‘gas’ in the Ethereum or NEO networks, to pay for network transactions. TFUEL serves to pay for operations such as setting up caching nodes or creating smart contracts. This asset can be earned, for example, by staking THETA, providing caching power to other users, or interacting with the Theta.tv platform.

Where to Buy Theta (THETA): Switchere Exchange

If you’re wondering where to buy THETA, you should definitely think about buying it at Switchere. On our platform, you have an opportunity to buy THETA in the fastest and most convenient ways using any available payment method. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.

How to buy THETA with USD or EUR? At Switchere, you can buy crypto for fiat money or swap crypto for crypto. In addition to traditional purchases with a bank card, you can use alternative payment methods available (SEPA, SOFORT, M-Pesa, Asian local banks).

Here is an easy step-by-step guide on buying THETA at Switchere!

  • Visit our website and log in to your account.
  • Choose the currency pair for exchanging, enter the amount and your THETA wallet address.
  • Check the transaction details and click on the ‘Make Payment’ button.
  • Enter your card details and click on the ‘Pay Now’ button. Please take into account that you have a limited amount of time to send your funds. Elsewise, the transaction will be canceled automatically.
  • Once you send the funds and your transaction receives the required number of blockchain confirmations, the amount of purchased THETA will be sent to your provided wallet address accordingly. Click on the ‘Show Order Status’ button to check the status of your transaction.
  • Congratulations! The transaction is completed, and now you can check your THETA wallet.

Usually, Switchere transactions take 5-30 minutes. If you have any troubles with the exchange process, let us know at [email protected]

Conclusion

The Theta network and its economic incentives allow users to share their computing resources and throughput to help solve specific technical and business challenges. In the future, the developers plan to actively fight against piracy, expanding the platform’s functionality to other types of services, and increasing the throughput of transactions almost to infinity. The latter is planned to be achieved using the Plasma sidechain.

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