An Overview of the THETA Blockchain’s Mechanism, Tokenomics

Theta Network is a blockchain platform for the media and entertainment industry. It allows video and media platforms to lower their content delivery CDN costs, earn more revenue, and reward end-users for sharing their storage and bandwidth on any device, such as a PC, mobile, Smart TV, or IoT device.

Theta supports smart contracts that can do anything, and it works well with Ethereum, making it possible to create many Web3 applications, such as NFTs, DEX/DeFi, and DAOs, for the new generation of media and entertainment platforms.

Theta Blockchain Mechanism

Theta Blockchain has a two-layer consensus mechanism that is Byzantine Fault Tolerant (BFT). It combines a group of 20-30 enterprise validator nodes with another layer of thousands of guardian nodes run by the community. 

Validator nodes develop and complete new blocks in the chain, on the other hand, guardian nodes observe over them and prevent them from being bad or broken. This technique creates the Theta Blockchain very decentralized, and the thousands of guardians create it extra securely. The Theta Blockchain can endure 1,000 transactions per second, and its consensus mechanism is fast, green, and without any carbon footprint.

The Theta blockchain also sustains smart contracts that can allow digital ownership, new ways of paying and consuming, equitable distribution of royalties, trustless crowdfunding, and considerably more. The Theta Virtual Machine is compatible with the Ethereum Virtual Machine, making it comfortable for contracts that operate on Ethereum to function on Theta too. This means thousands of smart contract developers can efficiently start building on Theta, using its growing user and capital base.

Theta Metachain 

Theta Metachain is a concept that Theta Labs announced in April 2022, and it plans to launch it on Dec 1, 2022. It is a network of blockchains that connects to each other, a “chain of chains,” that lets the Theta blockchain network scale up without limits and achieve very fast transaction speed and block confirmation time of 1-2 seconds or less. The Metachain has one “main chain” and many “subchains,” which run transactions separately. This allows the Metachain to increase its processing power infinitely. 

The subchain SDK will have a built-in channel for interchain communication that links the subchains and the main chain, allowing crypto assets like TNT20/721 tokens to move freely across the chains. The process of making a subchain is permissionless, meaning anyone can register and launch a subchain without needing Theta Labs’ permission.

Theta Network Token 

Theta Network has two types of tokens: the governance token, THETA, and the operational token, TFUEL. THETA is used to stake as a node, help produce blocks, and govern the Theta Network. By staking and running a node, users get a share of the new TFUEL created. The amount of THETA is fixed at 1 billion and will not change. 

TFUEL is used for on-chain activities like paying to Edge Node relayers for sharing a video stream, or for using or creating smart contracts. Relayers get TFUEL for every video stream they share with other users on the network. The amount of TFUEL grows every year at a fixed rate set by the protocol.

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.