Theta is a blockchain and token that will be used to power a decentralized video streaming and delivery network. The Theta Token functions as an incentive mechanism that encourages users to share their unused memory and bandwidth, serving as video caching and relay nodes for the network. Theta will be an open-source project that will be shared with industry and community participants, and our long-term vision is to have all video platforms participate in the network by building decentralized apps (Dapps) on top of the Theta protocol. Applications such as TV, movies, esports, music, education, and enterprise conferencing can benefit from building on the Theta Network.
This whitepaper introduces a new Decentralized Streaming Network (DSN) and Theta, a new blockchain and token as the incentive mechanism for the DSN. DSN and the Theta protocol solve various challenges the video streaming industry faces today. First, Theta tokens are used as an incentive to encourage individual users to share their redundant memory and bandwidth resources as caching nodes for video streams. This improves the quality of stream delivery and solves the “last-mile” delivery problem, the main bottleneck for traditional stream delivery pipelines, especially for high resolution high bitrate 360° virtual reality (VR) streams. Second, with sufficient amount of caching nodes, the majority of viewers will pull streams from peering caching nodes. This significantly reduces content delivery network (CDN) bandwidth costs, which is a major concern for video streaming sites. Lastly, the Theta network greatly improves the streaming market efficiency by streamlining the video delivery process. For example, advertisers can target end viewers at a lower cost and reward influencers more transparently.