Theta is a decentralized video delivery network, powered by users, running on a dedicated blockchain (Theta Network). Its value proposition is to reduce the costs of content delivery networks by effectively creating a mesh network of shared content.
Initially launched as an ERC-20 token, Theta has run its mainnet since March 2019, following a $20MM raise via private token sales in 2017.
Theta Network leverages three core features:
Modified BFT consensus mechanism: a modified BFT consensus mechanism that allows thousands of nodes to participate in the consensus process, while still supporting more than 1,000+ TPS.
Off-chain pool for micropayments: a system that relies on a set of guardian nodes to keep a signature through the partial aggregation of signatures from its neighbors before gossiping it out the aggregated signature. Through this system, it allows the signature share of each node to reach other nodes at an exponential rate while keeping the communication overhead small.
Aggregated Signature Gossip Scheme: built for video streaming purposes, it allows users to benefit from an off-chain micropayment pool.
Its crypto-economics is centered around a two-token modelwith THETA and TFUEL:
THETA is the governance token of the Theta protocol: it is used to stake as a Validator or Guardian node, to produce blocks, and to participate in the protocol's governance.
TFUEL is the operational token of the Theta protocol: it is used by users to complete transactions (e.g., for a relay node to provide a third party with a video stream, to deploy / interact with smart contracts). Nodes earn TFUEL for every video stream they relay to other users on the network.