What Is the Theta Crypto Token and How Does It Work?

Theta Network has drawn big tech into the crypto space, with partnerships including Google, Samsung, and Sony. Here’s how the Theta crypto token (THETA) works.

May 24, 2024
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What Is Theta Kv

Key Takeaways:

  • Theta Network facilitates decentralised video streaming by allowing users to share bandwidth and computing resources to relay video streams.

  • This decentralised model improves scalability and streaming quality compared to traditional content delivery networks (CDNs)​.

  • Theta Network has attracted partnerships with major companies like Google, Samsung, and Sony.

  • The network uses a dual token system with THETA as the governance token and Theta Fuel (TFUEL) as the operational token.

  • THETA is used for staking, voting, and earning TFUEL, while TFUEL is used for transactions, smart contracts, and rewarding users for sharing resources​.

  • Theta Network includes the Theta Edge Network, a decentralised cloud infrastructure designed for high-demand tasks like AI computing, video transcoding, and 3D rendering.

  • Theta Blockchain is an EVM-compatible network that supports Ethereum decentralised application (dapp) development tools and languages.

What Is the Theta Crypto Token?

THETA is the governance token of Theta Network, a decentralised platform for video streaming, AI computing, and smart contract execution. The network is designed to offer a decentralised infrastructure for these services, providing a unique alternative to traditional, centralised models. 

In this article, we take a look at what Theta crypto token and the Theta Network are about and guide you through the steps to buying THETA.

How Does Theta Network Work?

​​The Theta Network is primarily used for decentralised video streaming, edge computing, and smart contract applications. It is designed to overcome the limitations of traditional content delivery networks (CDNs) by utilising a global pool of users who share their spare bandwidth and computing resources to relay video streams. This decentralised approach, also known as decentralised compute, leads to enhanced streaming quality and scalability as more users join the network and contribute resources​. 

Learn more about decentralised compute crypto tokens here.

Additionally, Theta Network incorporates edge computing, allowing it to handle high-demand tasks like AI computation, video transcoding, and 3D rendering. This is made possible through a vast network of global nodes that provide distributed GPU power, offering a scalable and cost-effective solution for various applications​.

The network’s compatibility with Ethereum also allows developers to create dapps. This flexibility has attracted partnerships with prominent entertainment brands and companies like Google, Samsung, and Sony, further reinforcing Theta Network’s role in the evolving media and entertainment landscape​.

Decentralised Video Streaming

Theta Network aims to create a decentralised video streaming platform where users can share their bandwidth and computing resources to relay videos. By leveraging a global pool of users, Theta Network improves streaming quality and scalability. Users who participate in the network are rewarded with TFUEL, incentivising them to contribute their spare bandwidth and computing resources​​.

BFT Consensus

Theta Network employs a unique consensus mechanism based on a multi-level Byzantine Fault Tolerance (BFT) structure. The network is powered by two types of nodes: Enterprise Validator Nodes and Guardian Nodes. 

Enterprise Validator Nodes are typically large companies that stake a significant amount of THETA (minimum 10,000,000) to propose new blocks. They are operated by major companies like Google, Samsung, and Sony, which stake THETA to gain the right to validate transactions on the network. These nodes ensure the stability and security of the Theta Network blockchain.

Guardian Nodes, operated by community members, verify and finalise these blocks, providing an additional layer of security. This structure allows Theta Network to process up to 1,000 transactions per second (tps) with low energy consumption​​. By participating as a Guardian Node, users can contribute to the network’s security and earn TFUEL as a reward​.

Compatibility With Ethereum

Theta Network is compatible with Ethereum’s infrastructure, allowing developers to build dapps on the Theta Network blockchain. This compatibility means that existing Ethereum-based applications can be ported to Theta Network with minimal modifications, expanding the network’s potential use cases. Additionally, the Theta Virtual Machine supports smart contracts, enabling developers to create new dapps.

Theta Edge Network and Edge Computing

Theta Network includes the Theta Edge Network, a decentralised cloud infrastructure designed to handle AI computing, video streaming, 3D rendering, and other tasks. This edge computing platform is powered by a vast network of global nodes, providing a scalable and cost-effective solution for high-demand computing tasks. 

The Theta Edge Network is expected to play a significant role in future AI applications and cloud-based services​​.

Theta and Theta Fuel: Dual-Token Design

Theta Network uses a dual-token model with THETA and TFUEL. THETA, serving as the governance token, is used for staking and voting on protocol changes. By staking THETA, users can become Enterprise Validator or Guardian Nodes, contributing to the network’s consensus mechanism and earning TFUEL rewards. The total supply of THETA is capped at 1 billion tokens, ensuring a fixed supply​.

TFUEL is the operational token, used for on-chain operations, such as payments to Edge Nodes for video streaming, cloud computing, and deploying smart contracts. TFUEL is also required for executing transactions, acting as gas for the Theta Network blockchain. The initial supply of TFUEL was 5 billion, with a fixed annual increase of 5%​​.

How to Buy Theta Crypto Token (THETA) With Crypto.com

Crypto.com offers a user-friendly platform to buy THETA crypto tokens and engage with the Theta Network. 

Follow these steps to buy THETA on Crypto.com:

  • Complete the necessary verification process to unlock full access to the platform.
  • Deposit funds into the Crypto.com account; users can utilise fiat currency or other cryptocurrencies to fund their accounts.
  • Navigate to the ‘Buy’ section of the App and search for the THETA token.
  • Specify the amount of THETA tokens to acquire and review the transaction details.
  • Confirm the transaction and wait for the order to be executed.
  • Monitor the THETA token holdings in the Crypto.com App, which doubles as a wallet.

Crypto.com provides a secure and reliable trading environment, ensuring that users can trade THETA tokens with confidence. Take advantage of the platform’s intuitive interface, advanced trading features, and competitive fees to make the most of the Theta Network token trading experience.

Conclusion

Theta Network, powered by the THETA crypto token, is a platform that combines blockchain technology with decentralised video streaming and cloud computing. Its unique consensus mechanism, dual-token design, and compatibility with Ethereum make it a versatile solution for various applications. As the network continues to grow and attract partnerships with major companies, it could become a key player in the media, entertainment, and AI industries​.

Due Diligence and Do Your Own Research

All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation.

Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a digital asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.

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