The Theta Network project is designed not only to become a base for video data exchange, but also to solve a number of problems of the stream industry. The network functions to improve the processes of creating and consuming video content in three directions:
- Enhance the quality of streams by offering optimal technology that solves the problem of the “last mile”.
- Reduce the cost of networks and simplify the processes of delivering content to the consumer.
- Improving the efficiency of the video ecosystem and transparency of payments and advertisement.
The Theta ecosystem is divided into two levels. The first level is a global network of delivering video content. The second level is a chain of blocks, internal tokens, which serve as an award for participants. Each user can make their PC one of the network nodes for transmitting video materials. So that it is not free, for video hosting services you will receive payments in digital tokens. It will almost halve the cost of delivering video content, and significantly improve the quality of transmission. At the same time, a decentralized network will be more stable and reliable, and serious failures in the information processing center can paralyze the video file sharing infrastructure of an entire country or region.
Like all blockchain ecosystems, TH is open and, thanks to a modified Proof of Stake (PoS) consensus algorithm, has a high throughput, while remaining a decentralized and secure system. The chain itself is also two-level:
- Validation Committee.
- Theta Guardian Node (Guards).
Validators are responsible for creating blocks and monitoring the activities of all other nodes in the ecosystem. The checking nodes are assigned by the network administration. There can be as many guards as you want, everyone can download the corresponding software on the official website of the project and launch a new network node to earn money on checking the blockchain at one of the specified points. In this way, TH preserves the decentralization, without compromising the processing speed. It is assumed that there will be a lot of micropayments within the network, so the position of a guard promises normal dividends. Users can get awards by launching caching nodes to provide video hosting services.
The new network’s functionality is based on the concept that users can use the unused computing power of their PC to transmit the streams of other participants, thus forming a global video delivery infrastructure and receiving an award in the form of THETA cryptocurrency. Direct interaction of viewers with advertisers and content creators within a peer-to-peer network will improve the quality of streaming and reduce the cost of its distribution, as well as help reduce the final cost of video for consumers. The platform's functionality is based on the following key elements:
- Proof of Interaction — the Proof-of-Engagement algorithm, which ensures the legitimacy of content consumption by viewers and transparency for advertisers (no remuneration is awarded if the video is not fully viewed).
- Global reputation-a consensus mechanism that determines the amount of video stream retransmission and the amount of remuneration for each specific caching node-depending on the global reputation score.
- Dependent mining — accruing a reward for a block in accordance with the reputation score.
The TH blockchain uses an aggregated sign pattern. This means that the validators do not pass the signatures to each guardian, but send them to the nearest nodes, which pass them further down the chain. This speeds up the exchange of information. And there is also a payment scheme outside the block chain, to protect against the Double-spending attack. The interaction algorithm is simple: when viewing the video, the user receives “fuel” THETA Fuel. THETA Fuel — digital coins that are transferred to other participants who have provided their video caching capacity. Each user also becomes part of a decentralized network and participates in the distribution of content, for which they receive an award in the form of THETA Fuel.