Theta ranks 9th in market capitalization

9 mins read

While the virtual currency market such as Bitcoin is totally depreciated due to the deterioration of the financial market, the decentralized streaming related stock Theta is going backwards. CMC’s cryptocurrency market capitalization ranking has risen to 9th place. A year ago, in March 2008, the market capitalization was 78th.

Theta price increased by 255.6% month-on-month, more than doubled, and recorded a year-on-year increase of more than 200 times. It should be noted that the feeling of overheating at the feet is very strong and the risk of a sudden rebound is undeniable, but it can be said that it is an exceptional breakthrough.

Theta Network provides a video distribution platform (THETA.tv) to distribute content such as MGM, Lions gate and NASA. In order to maintain the network, we will put in place a PoS system that stakes Theta tokens to nodes.


Strong background

The following three factors are considered to be the main factors behind the soaring price.


  • Four funds staking Theta worth a total of 10 billion
  • Started distribution for Japan on LINE block chain
  • US Grayscale Considers THETA Investment Trust


Main net 3.0

The announcement on the 24th revealed that Sierra Ventures, Heuristic Capital, VR Fund, and GFR Fund are staking a total of $ 100 million worth of Theta into “enterprise valid data nodes”. According to the announcement, the total assets under management of these funds exceed.

In addition, regarding the alliance with the largest communication app LINE, on the 9th of this month, we started providing content services for Japanese users on the LINE block chain. Domestic Android users have a history of being able to download from the Google Play Store.

At the end of February, Grayscale, the largest US cryptocurrency investment company, announced that it is considering 23 cryptocurrency investment trusts, including Theta. It seems that Theta was also wondering because it came to offer five new stocks on March 18.

Furthermore, the launch of “Main net 3.0” is scheduled for April 21st. The new main net will implement the TFuel ecosystem of gas tokens and introduce mechanisms such as TFuel’s staking (Elite Edge Node) and burn.


Architecture and consensus in Theta

The Theta protocol is based on a “proof of stake” consensus algorithm integrated with a multi-level protocol BFT (Byzantine fault tolerance)




Multilevel BFT

With the aim of obtaining a good balance between scalability and decentralization, suitable for the purpose of video streaming, the system is composed of a validation committee ranging from 10 to 20 nodes, with the task of producing blocks at high speed, followed by a pool of participating nodes called “guardians” with the task of finalizing the chain of blocks.

The main idea is to have a small set of validation nodes, to produce a block chain as fast as possible, with a high degree of difficulty to prevent attacks that compromise the integrity of the block chain and to reduce the risk of fork of the network.

The guardian nodes are then called to finalize the chain, generated by the validators. By “finalization”, we mean convincing 2/3 of the guardian nodes to accept the same block chain. As we will see this happens thanks to the gossip scheme of the aggregate signature.


Aggregate signature gossip scheme

The transmission of the entire hash of the block, transmitted to the guardian nodes, would produce an overload, due to the large number of these, with respect to the validator nodes, compromising their speed. Therefore Theta uses the gossip protocol, requiring each node to continue combining the partially aggregated signature from the neighboring node (instead of the entire hash) and thus continue to spread the signature., keeping the message size small.


Full Turing smart contract support

There is a runtime environment of smart contracts, of the complete Turing type, fully compatible with Ethereum Virtual Machine (EVM). The aim is to use the large Ethereum developer family and allow its pool of experts to work on it. Smart contracts will allow to optimize the efficiency of the platform:

  • Different payment options
  • Special events and loyalty programs


Support for off-chain micropayments

A block chain focused on video streaming, needs support for a high number of throughputs (frequency with which data is transmitted) and for high scalability. This is why Theta allows a pool of micropayments, which allows users to create transactions between them, for a short period of time and with slasher guarantees (protocol suggested by Ethereum, to overcome the double spending system, in a ” proof of stake “), in an off-chain environment, so as to significantly increase the scalability of the network.


Dual currency system and token mechanics

With the intent to protect the network, apply adequate governance, Theta uses a dual currency system.

We have the Theta token, used for “staking”, for network protection and management, suitable for governance. The Gamma token, more operational, used for individual transactions (segment transactions, smart contract transactions, etc.) suited to network utility-based transactions.

There are two main reasons behind this system:

  • First, it allows to separate the purpose and usefulness of each token, “staking” inherently reduces the supply of circulating money, while transactions for video segmentation and smart contracts require a highly liquid token, which can guarantee millions of dollars. daily transactions.
  • Second, two tokens are needed to solve consensus issues. A token with high liquidity, used for “staking” would be more likely to be accumulated by “malicious” actors considering the high exchange on the open market, potentially threatening the security of the network. By separating the two functions, the risk is significantly reduced.


How Theta can be used

The use cases vary according to the needs of the actors involved in the ecosystem, smart contracts can be used by content creators, viewers and platform providers to customize mechanisms that require the use of tokens, citing some examples:

caching nodes gain from caching registration, transferring video streams to other viewers.

Viewers could earn tokens from advertisers, as engagement rewards, and in turn reward favorite content creators.

Streaming sites and platforms can increase and generate new revenues from the sale of premium goods and services and from the greater involvement of new users through Theta.

The possibility for streaming platforms to download up to 80% of the costs related to the CDN network.



The live video streaming sector, as well as that of eSports, expect an increase in market size in 2021 and thus to increase in 2022. Massive use of Theta is expected starting from 2021, a success due not only to the substantial funding, with their technical consulting background, each member of the team has extensive experience in building successful businesses and in the ownership of patents related to VR technologies and video streaming.

However, there is no shortage of concerns and criticisms from the community. Native Theta tokens are set at 1 billion, which means that new Theta tokens will no longer be created, this factor, combined with the fact that ICOs have been discontinued and capital is raised only by “institutional investors”, is increasing the risk to centralize the money in the hands of a limited group of actors.

As curious and open to new developments as we are, we will continue to follow the project and its evolution.



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