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Theta’s native token (THETA) is a governance token that runs on the Theta network. These tokens help to secure the blockchain and are used to provide users with a host of functionalities. Let’s see what it is and if it is a scam?​

Understanding THETA​

THETA is the cryptocurrency powering the Theta Network and it can be staked by those wishing to become Validator or Guardian nodes. Theta Token is taking the blockchain to video streaming, seeking to decentralize video streaming and video on demand.

Their vision is to provide high quality video streams without the buffering issues often seen today. In addition, they plan on utilizing bandwidth and storage from users to reduce the cost of video streaming while also improving the quality.

THETA allows nodes to validate transactions, produce blocks, vote on changes to the network . Like many other cryptocurrencies, the supply of THETA is limited, meaning that according to the software’s rules, there will only ever be 1 billion THETA.

Is THETA a scam?​

So what about the question on everybody’s lips. Is THETA a scam?. Let’s first look at the advantages and disadvantages of this token.
The biggest pros of the Theta project, at least for now, can be found on the tech side of things rather than the cryptoeconomics. With support like a co-founder from YouTube and partnerships with the likes of Samsung VR, it’s possible that there’s something of real value here in terms of improving the state of online video streaming networks. If you are someone who is interested in creating a new online stream or you’re just a viewer of video streams, then you may want to check out the platforms built on top of the base Theta network to see if there are efficiencies in terms of lower costs for viewing and higher revenue for creating content.

There are a number of cons to look at in terms of the actual THETA token that underlies the overall Theta network. The most obvious issue is that the original token sale was not open to the public, which has led to an extremely high level of centralization around the initial distribution of THETA tokens.

In addition to the issues around token centralization, the general economics of the system in terms of how THETA is supposed to increase in value as more people use the network are unclear. THETA is basically a governance token for the overall Theta network, and the token is staked by Guardian Nodes and Validator nodes. However, these validators must be approved by Theta Labs. This brings into question whether a new cryptocurrency needed to be created for the Theta Network in the first place.

A problem with the token right now is that a large percentage of the tokens are still in the hands of early investors, so those investors cashing out could have a much bigger (and negative) impact on the price than any potential growth that the network sees. Additionally, it’s possible that a similar (or even more decentralized) system that uses bitcoin rather than the much less liquid THETA token could be created.

Pros and Cons of THETA​

Theta uses a Proof-of-Stake (PoS) mechanism which does not require as much computational power and which has a higher transaction throughput​
Theta cannot be mined as it uses a PoS and not PoW​
With PoS, there can be more devices that act as viewers and caching nodes​
There may be several challenges faced with competition in the field as there is increased development in video streaming technology​
Theta uses smart contracts to facilitate reward distribution as well as collection​
This is still a young project overall​
Theta has a dedicated, solid team of developers and supported​
Relatively low liquidity​

Well, Here is the end of the topic. What do you think about THETA. Is it a “scam” or “legit”? Let us know in the comment section below.

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