This whitepaper introduces the Theta Network, a new blockchain and token as the incentive mechanism for a decentralized video streaming and delivery network.
The Theta Network and protocol solves various challenges the video streaming industry faces today. First, Theta Tokens are used as an incentive to encourage individual users to share their redundant computing 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 4k, 8k and next generation 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.
The Theta blockchain introduces novel concepts:
● Resource Oriented Micropayment Pool: We have designed and implemented an off-chain “Resource Oriented Micropayment Pool” that is purpose-built for video streaming. It allows a user to create an off-chain micropayment pool that any other user can withdraw from using off-chain transactions, and is double-spend resistant. It is much more flexible compared to off-chain payment channels.
● Proof-of-Engagement: The micropayment records can be used as
“Proof-of-Engagement (PoE)”. Each payment for the video segment is associated with the ID of the video (i.e. the resource ID) and can be used to track delivery of video segments to end viewers. With PoE, viewers can earn tokens as rewards from advertisers in exchange for their attention to video streams and by providing PoE. PoE is used to prove that viewers legitimately consume the video streams, providing better transparency and a basis for viewers to earn Theta Tokens for engaging with content.
This white paper will describe these concepts and the Theta blockchain in detail. The Theta Network launched with ERC20-compliant tokens and were integrated into the SLIVER.tv platform in December 2017. A new blockchain and native Theta Tokens is planned to launch in Q4 2018, at which time each ERC20 Theta Token can be 1:1 exchanged for a native Theta Token.
Theta white paper