Demystifying the World of Theta Coin and TFUEL: A Comprehensive Guide
Welcome to the world of Theta, a decentralized video streaming platform powered by blockchain technology. With the long-term popularity of Theta coin and its operational token, TFUEL, it’s time we take a closer look at this emerging technology. In this guide, we will dive into Theta’s background, its founders, how it works, and, of course, its native cryptocurrencies - Theta coin and TFUEL.
Source: Theta Twitter
Understanding Theta (THETA) and Its Purpose
Theta is a blockchain protocol that seeks to incentivize a global network of computers to operate a decentralized video streaming platform. Traditional content delivery networks (CDNs) struggle to keep up with the increasing demand for high-quality video streams due to their location-based limitations. Theta’s solution involves allowing users to relay videos by offering their spare bandwidth and computing resources, rewarding them for their contributions. As more users join the Theta network, more bandwidth becomes available, improving the overall streaming quality.
Central to running operations on its blockchain, Theta boasts two native cryptocurrencies: THETA coin, used for voting on protocol changes, and TFUEL, utilized for executing transactions. Being open-source, Theta encourages the creation of new applications and services on top of its platform.
The Brains Behind Theta
Theta was founded in 2017 by Mitch Liu, a startup veteran in mobile gaming and online advertising, and Jieyi Long, who previously worked on VR live streaming technologies. The Theta team is backed by an impressive board of advisers, including YouTube co-founder Steve Chen, Twitch co-founder Justin Kana, and senior executives from Verizon, Rakuten Viki, and CJ Hello.
In 2017, the Theta team held a private token sale, raising the equivalent of $20 million by selling 30% of the 1 billion unit supply of its THETA cryptocurrency.
Source: Mitch Liu twitter
How Does Theta Work?
Theta’s network comprises three groups of participants:
- Enterprise Validator Nodes - Companies that stake THETA tokens for the right to process transactions on the network. Current Validator Nodes include Google and Samsung.
- Guardian Nodes - Users who ensure the transaction blocks proposed by the Enterprise Validator Nodes are accurate.
- Edge Nodes - Users who share their bandwidth or relay video streams over the Theta network in return for TFUEL.
The Theta network also allows developers to build decentralized applications (dApps) on top of its blockchain, with examples including royalty distribution applications and crowdfunding mechanisms.
Theta network users can download the official Theta Wallet app to hold or stake their THETA and TFUEL tokens. Additionally, Theta has built a micropayment system for video streaming purposes, enabling content viewers and creators to send and receive THETA via the official wallet app.
Theta’s Modified Byzantine Fault Tolerance (BFT)
Theta’s modified BFT, a proof-of-stake (PoS) governance mechanism, ensures the distributed network of computers running Theta Network remains in sync. It differs from traditional PoS in that both validator and guardian nodes participate in the consensus mechanism, adding an extra layer of security to the protocol.
These nodes must stake THETA tokens to help power the blockchain, produce blocks, and vote on changes. Validator nodes are required to stake a minimum of 10,000,000 THETA, while Guardian Nodes need to stake only 100,000 THETA. Voting power is determined by the amount of THETA staked.
Source: Forkast News
What is Theta Fuel and what will it be used for?
Theta Fuel is the operational token of the Theta protocol. Users utilize Theta Fuel to complete transactions, such as paying a relay node to provide a video stream or deploying or interacting with smart contracts. Relay nodes earn Theta Fuel for every video stream they relay to other users on the network.
How will Theta Fuel be generated? At what rate?
The genesis distribution of Theta Fuel occurred when the Theta mainnet launched on March 15th. For each Theta Token held when the Theta Mainnet launched, users received 5 Theta Fuel to seed the ecosystem. After the initial distribution of 5,000,000,000 TFUEL (5 for each of the 1 billion Theta Tokens), the supply increased at an initial annual target rate of 5%. The new supply rate is determined at the protocol level and can be adjusted as needed by protocol consensus to provide the appropriate amount of new supply demanded by platforms on the Theta Network.
Technically, this is true at the protocol level. However, the actual model implemented on SLIVER.tv and initial partners like MBN and Samsung VR is that the cost of TFUEL falls on the video platform. Platforms subsidize users with the TFUEL necessary to pull video streams from relayers on the Theta Network. This makes sense because video platforms are the ones most directly benefiting from getting more viewers to pull their video stream from the Theta Network, resulting in lower CDN costs and higher user engagement. It is crucial that end-users never have to purchase any TFUEL tokens just to watch videos on the Theta Network, as this would create a significant friction point for adoption.
Theta Token (THETA): The governance token of the Theta protocol. THETA is used to stake as a Validator or Guardian node, contributing to block production and the protocol governance of the Theta Network. By staking and running a node, users will earn a proportional amount of the new TFUEL generated. The supply of THETA is fixed at 1 billion and will never increase. THETA currently exists as an ERC20 token and is traded on major exchanges. At Mainnet launch on March 15th, ERC20 THETA was replaced by new THETA tokens on the Theta blockchain at a 1:1 ratio.
Theta Fuel (TFUEL): The operational token of the Theta protocol. TFUEL powers on-chain operations like payments to relayers for sharing a video stream or for deploying or interacting with smart contracts. Relayers earn TFUEL for every video stream they relay to other users on the network. You can think of Theta Fuel as the “gas” of the protocol. At Mainnet launch on March 15th, TFUEL was created as a native token on the Theta blockchain.
FAQ about Theta
Where to buy Theta token?
You can purchase Theta tokens on various cryptocurrency exchanges such as Binance, Coinbase, and Crypto.com. Ensure you’re using a reputable exchange and follow the platform’s instructions to buy Theta tokens safely.
Theta contract address
Make sure to double-check the address before interacting with it to avoid potential scams.
Several factors can impact the Theta Coin Price and TFUEL Price, including market sentiment, overall demand, technological advancements, partnerships, and competition in the decentralized video streaming space. Keeping an eye on Theta token news and staying updated on the industry will help you better understand the market dynamics.
Theta and its native cryptocurrencies, THETA and TFUEL, are revolutionizing the video streaming industry by offering a decentralized platform powered by a global network of users. By leveraging blockchain technology, Theta aims to improve video streaming quality and create an ecosystem where users are rewarded for sharing their spare bandwidth and computing resources.
With a strong team behind the project, including the founders of YouTube and Twitch, Theta has attracted significant attention and partnerships with industry giants such as Google and Samsung. The future looks bright for this innovative project, and keeping up with Theta token news and developments will undoubtedly help you stay informed about the Theta Coin Price and TFUEL Price.
As a beginner or a seasoned crypto enthusiast, understanding the Theta network, its vision, and its potential impact on the video streaming industry will enable you to make informed decisions about investing in or using Theta tokens and TFUEL. Remember to always research thoroughly and follow best practices when dealing with cryptocurrencies. Happy streaming and trading!