How THETA Works

THETA is a decentralized, blockchain-based video delivery network designed with the goal of improving the video streaming industry. This network operates by leveraging blockchain technology to create a peer-to-peer (P2P) infrastructure, which reduces the need for centralized servers and other traditionally costly activities that are required for content streaming.

Decentralized Streaming

At its core, THETA enables decentralized streaming by allowing users to share their excess bandwidth and computing resources. Users who do this are referred to as "relay nodes," and they are incentivized through token rewards for their contributions. These tokens originate from the THETA ecosystem, and the process aims to create a more efficient and cost-effective way to distribute video content around the globe.

Theta's Two-Token System

The THETA network uses a dual-token structure:

• THETA Token: The THETA token is the governance token for the network, meaning holders of it can participate in the protocol's decision-making processes. For example, staking THETA allows the community to vote on governance issues such as protocol changes and various ecosystem developments.
• TFUEL: Unlike THETA tokens, TFUEL is used more as an operational token within the ecosystem. It functions as a payment for transactions such as video sharing, relaying, and compensating validators involved in securing the network.

How Video Streaming Is Enhanced

By enabling users to share their unused bandwidth, both THETA and TFUEL are geared towards improving video quality and reducing latency. When users participate as relay nodes, they create a mesh of data-delivery points across the globe, creating a more decentralized and reliable network. This, in turn, allows viewers to experience higher-definition streams without buffering, which is traditionally a significant issue in areas with poor connectivity.

Validators and Guardian Nodes

To ensure that the network maintains its security and operability, THETA uses validators and guardian nodes. Validators are responsible for processing transactions and maintaining the integrity of the blockchain. They are typically operated by large enterprises that hold significant amounts of THETA tokens. On the other hand, guardian nodes act as an additional layer of security by verifying blocks that have been proposed by validators.