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THETA: Passive income from validating/guarding node, and relaying
Theta is a decentralized peer-to-peer video streaming network that incentivizes the sharing of bandwidth. Theta’s development team realized that the current video delivery networks are deficient in some of the services they offer, especially in less developed countries and developed the Theta network to solve those issues using the blockchain technology.
Theta is made up of two parts. The first one is the video delivery network that is composed of nodes that join the network and allow users to contribute their bandwidth. The second part is its blockchain which is designed for incentive purposes, to help convince more people to join the video delivery network.
The Theta network is unique in that it would run two tokens. The Theta token (THETA) is the primary cryptocurrency, and it is used to govern the platform. It is used by the validate blocks, allowing users to contribute to Theta’s block production and the governance of the network.
The second token, TFUEL, meanwhile will be the operational coin of the network. It would be used to pay relayers for sharing content on the platform and would act as the gas of the network.
Let us not focus on how we can generate income from this blockchain and its cryptocurrency.
How to make passive income with Theta
- Become a guardian/ validator node
- Relaying and sharing content
How to become a Theta guardian
Guardians on the Theta network are validators that are in charge of finalizing specific blocks on the blockchain. The requirements and reward for validators on the network are the same for guardians. The system is designed to provide multiple levels of security to the blockchain and its video-sharing network.
- To run a guardian node on the Theta network, you will have to be registered on the Theta platform.
- The Guardian node functionality is expected to launch to the mainnet in the third quarter of the year, and interested guardians must have at least 100,000 Theta tokens. This is to ensure that malicious actors are not allowed to become guardian nodes on the network.
- For each Theta token, a guardian/validator holds at the time of the mainnet launch; five TFUEL tokens would be rewarded to the holder.
- There are hardware requirements for this post including an internet speed of 5Mbps+ up and down, CPU of 8 cores or more, computer memory of 32 GBytes or more, and hard disk space of 1TB or more.
- The network will have to verify the requirements before approving a guardian node. By meeting these conditions, you will stand a chance to earn TFUEL rewards in your Theta wallet. TFUEL is the other operational token of the network and would be the one guardians would receive once the node goes live in a few months.
- As a guardian node, you will be required to finalize blocks in the network’s Multi-BFT consensus protocol. You will be amongst the second line of defence for the network that downloads and examines the blockchain and reaches a consensus with other nodes on finalized checkpoints.
- You can find more information on guardian node here.
How to make passive income from relaying and sharing content
- To earn passive income by sharing video contents, the first thing to do is register on the platform.
- The relayers would earn the TFUEL token for sharing content on the platform. You can get more information on this from their Github repository.
Theta a quick review
Theta is a unique platform in the cryptocurrency space, and it has a few qualities that could make it a success.
- Tokenomics: the dual currency used by Theta is something that gives the blockchain a unique touch. The tokens would be used to govern the network and to reward validators, guardians, and relayers. The mainnet was launched on March 15, and it is still unclear if the prices of THETA and TFUEL would be tied together. There are 5 billion TFUELS and 1 billion THETA tokens. To curb the inflation rate, the developers would burn 5% of the TFUEL tokens used for transactions annually to balance the total supply of the two tokens.
- Technicality: Theta wants to ensure it builds a high-speed network by approving 10 to 20 validator nodes that generate blocks. They are broken down to 2/3 guardian nodes that finalize blockchain checkpoints to ensure the security of the blockchain.
- Decentralized network: As a video sharing platform, Theta is entirely decentralized. Anyone can become a guardian/validator or a relayer once they meet the requirements put in place by the developers.
- Usage: the Theta network is still very much in development, so usage of the video sharing platform is low at the moment. That could change; however, as the chance to stream high-quality videos might attract more users to the platform.
For validators and guardians, the potential for passive income depends on the amount of THETA tokens in your possession. The higher the THETA tokens, the higher the TFUEL tokens you will receive. For content relayers, it depends on the number of networks shared on the platform.
More info on Theta
Here are links to find valuable info on Theta