We live in the age of video streaming with Netflix, Disney+, YouTube, Twitch, as well as domestic services such as Akiyay, Youku, Tencent Video and numerous live streaming platforms.
Cisco Visual Networking Index reports that IP traffic is expected to grow rapidly from 122 EB per month in 2017 to 396 EB/month in 2022, with Internet video set to account for 71% of the overall market traffic next year.
Such growth means that streaming providers must spend more money to maintain their own content delivery networks, and the solution can be to rent commercial cloud servers such as Amazon, AliCloud or others.
But no matter which solution is used, as traffic increases further, the costs will increase rapidly for streaming companies that typically pay large sums each year just for CDN bandwidth.
But beyond that, there are a number of issues that people with streaming solutions often struggle with. While CDNs operate resident data centers in many locations, their limited numbers reduce the efficiency of delivering streaming services to users, especially in remote and less developed areas.
Streaming users often faced problems such as poor picture quality, frequent rejections and unstable streaming. As technology advances, transmission problems become more severe, as higher resolutions such as 4K and 8K require much more bandwidth than the 720p or 1080p standards.
Theta Network is a fast-growing cryptocurrency project that seeks to provide a viable solution to all of the above problems by leveraging blockchain and a next-generation platform to decentralize the video streaming space.
Backed by blockchain technology, Theta Network is a next generation platform for video streaming and delivery.
Unlike traditional solutions on the market that utilize centralized servers for delivery, Theta provides streaming services through a decentralized network.
In Theta Network, viewers watching video can share their unused computing and bandwidth resources with others to optimize the user experience and the quality of the stream.
As a reward for user support, viewers receive Theta Fuel, one of two native Tokens used by the platform in its ecosystem. Users who contribute their device bandwidth and computing resources to Theta are called cache nodes.
Together, these nodes form a mesh network for video delivery and are responsible for delivering video streams to viewers. While the nodes are served globally, delivery is optimized for local use, meaning that the network will select the nearest node for streaming delivery (e.g., your neighbor’s computer around you).
Since the devices that viewers use to watch video are also used to deliver streaming content to others and are geographically closer, the quality of the stream can be greatly improved by reducing information round-trip time.
According to Theta’s predictions, video and streaming platforms can use Theta for a long time to reduce bandwidth costs by up to 80% if the number of caching nodes is large enough.
The platform features peer-to-peer connections between viewers and nodes, rather than through a central server.
It is for this reason that a distributed network like Theta does not face the single point of failure that often causes service outages. On the contrary, the more users in the network the more robust it becomes and the better the streaming quality will be.
Regarding Theta, it is important to note that the cryptocurrency project aims to provide streaming businesses with a cheaper and more efficient way to operate their services, while providing decentralized streaming platforms with the opportunity to enter the market through Theta’s protocol.
This is what makes Theta so successful in securing investments and partnerships with well-known companies such as Samsung, Google, Sony and Gumi Inc.
How THETA works
In order to understand how Theta works, let’s look at the important components of the network.
- Multi-layer Byzantine Consensus Algorithm (PBFT)
Theta has its own blockchain platform, which uses a BFT consensus mechanism based on delegated proofs of interest. consensus on Theta is reached through two layers. In the first layer, a small group of enterprise verifier nodes generate the blockchain as fast as possible.
Afterwards, they communicate with thousands of community-operated guardian nodes, which finalize the blockchain generated by a committee of validators on regular checkpoint blocks. This architecture is known as a dual defense system.
Although the first layer of validators can reach consensus quickly due to the small number of nodes, he also has to guard the nodes responsible for securing the network and has the final say in validating transactions.
At the same time the first tier verifier has to monitor the malicious activities of the enterprise nodes. While the committee of verifiers is increasingly centralized, the guardians at the second layer can reach consensus on a decentralized basis. As a result, the network can reach more than 1000 transactions per second in scalability, which achieves a good balance between decentralization and security.
- Aggregate signature broadcast scheme
When finalizing the blocks generated by the validator committee, the guardians choose to communicate by broadcasting data to all nodes in the second layer. However, while this is a feasible process in practice, it can significantly limit the throughput and scalability of the network.
For this reason, Theta uses a mechanism called an aggregated signature broadcast scheme to reduce the complexity of message delivery.
As part of this scheme, each guardian in the network combines some of the signatures from its neighbors before communicating the aggregated signatures to other nodes. As a result, communication between nodes can become faster and more efficient, while allowing the amount of information between nodes to shrink.
- Off-chain micro-payment pool
Theta has also designed an off-chain micropayment pool specifically for video streaming transactions. While it is double-spend resistant, this feature allows users to create an off-chain micropayment pool from which others can withdraw funds via off-chain transfers.
This way, users can pay for streaming content pulled from multiple cache nodes without the need for on-chain transactions. Doing so saves valuable resources for the Theta blockchain and allows the network to achieve better scalability.
- Edge Nodes
Theta’s verifier board and guardian node architecture allows video streaming platforms to work more efficiently, but requires them to operate using their own servers, CDNs or decentralized technologies.
However, with the release of Theta’s mainnet 2.0, the encryption project introduced another set of community-hosted nodes called Edge nodes.
Edge nodes provide support for Theta’s Edgecast peer-to-peer streaming dApp, allowing users in the network to relay, transcode and share excess resources with other users without the need for centralized servers.
To solve other users’ tasks, Edge nodes receive TFuel rewards that are placed in a smart contract that acts as an untrusted custodian until the submitted solution is verified by other nodes.
With Edge nodes, streams can now be created, uploaded and viewed without the need for any central server or CDN on Theta.
Theta Virtual Machine and Smart Contracts
Theta has an Ether Virtual Machine (EVM) compatible virtual machine which allows developers to roll out their ETH based solutions on the previous platform with simple modifications and then.
In addition to this, Theta supports smart contracts, which cryptocurrency projects can use to create and launch their own TNT-20 Tokens on the video streaming blockchain platform.
In addition, content creators on Theta can also launch their NFTs, while users can use the platform’s smart contract-powered DEX to exchange Tokens.
So what is Theta Token (THETA)? And how is it different from Theta Fuel (TFUEL)?
First, Theta uses two TOKEN structures to operate. The first is THETA, which is primarily used for governance and pledging.
While holders can use THETA to vote on future changes, updates and other important matters regarding the video streaming protocol, validators and guardians will pledge the cryptocurrency to generate new blocks and finalize them in the consensus process.
The total supply of THETA is fixed at 1 billion Tokens, and no coins will be released in the future.
TFUEL, on the other hand, plays a similar role in the network to Ether’s gas with some additional features.
While TFUEL is used for smart contract interactions and to pay for on-chain transactions, it is also distributed as a reward to users who make bets for THETA as well as to edge nodes, viewers, and content creators.
TFUEL has an initial supply of 5 billion coins, which features a 5% annual increase in supply. After collecting $20 million from contributors in January 2018, THETA’s price has remained relatively stable, a situation that has been maintained until July 2020.
However, since December 8, 2020, THETA has experienced nearly 1,500% growth, with year-to-date returns of 428% as of May 6, 2021.TFUEL is in a very similar position, achieving 1,000% growth in 2021 and a historical ROI of over 2,350%.
Theta’s ecosystem is growing rapidly, with the video streaming blockchain platform at the forefront, and a series of initiatives have been taken by Theta to address deficiencies in all areas.
- Theta Wallet
Theta has its own cryptocurrency wallet, which you can use to hold, receive and send THETA, TFUEL, TNT-20 and the platform’s NFT.
Theta.tv, formerly known as Sliver.tv, is the project’s own decentralized video streaming platform where you can earn TFUEL by contributing your device to improve the streaming quality of other users watching content on the service.
Theta Edgecast is the project’s own dApp that provides users with the ability to create, upload and watch video streams in a completely decentralized way. edgecast does this by using thousands of Edge nodes to maintain the dApp.
Theta Swap is the platform’s local decentralized exchange. Through this platform, Theta users can exchange between THETA, TFUEL and TNT-20 tokens using smart contracts, and there are no intermediaries.
5、Theta Token Minter
Theta Token Minter is a solution for developers and cryptocurrency projects to create and launch their own TNT-20 tokens on the blockchain of the video streaming protocol.
ChainGold Analyst Opinion
Theta is a success story that uses decentralization to solve the most pressing problems in the video streaming space.
Video streaming is becoming increasingly popular, but traditional providers are facing multiple issues such as increasing costs and last mile delivery problems.
Theta aims to solve these problems by creating a decentralized video streaming protocol using blockchain technology. In addition to having better picture quality and cheaper costs, Theta uses TFUEL Tokens to incentivize users to share their device resources with others as they watch content on the platform.
Although the project was only launched three years ago, it has been evolving rapidly, and Theta plans to release the third version of its main network in the coming weeks.
Theta Master Network 3.0 will introduce two major upgrades.
One, elite edge nodes, upgraded edge nodes can earn additional TFUELs by pledging tokens and by delivering higher performance on the streaming platform.
ii. TFUEL destruction mechanism to counteract TOKEN bloat by introducing a fee for using the Theta Edge network. The project will destroy at least 25% of the per-payment TFUEL fee at the protocol level to reduce the supply of encrypted TOKEN.
With this main network upgrade, theta will be further improved in security and stability, and the economic model will be further optimized. We believe that as video streaming grows further, the importance of theta will be further highlighted and its market share will increase further.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/theta-blockchain-the-pioneer-of-decentralization-in-the-video-streaming-industry/
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