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.
The Theta blockchain introduces three novel concepts:
Reputation Dependent Mining: In the Theta protocol, the caching nodes play the role
of miners in the blockchain. The block reward is not a constant, but depends on the
reputation score of the caching node that mined the block. To obtain more mining
rewards, miners not only spend computation power to mine blocks, but also relay
video streams to downstream viewers to increase their reputation scores.
Global Reputation Consensus: We propose a mechanism for the Theta network to
reach the global consensus on the reputation scores for each caching node.
Proof-of-Engagement: We introduce a novel Proof-of-Engagement scheme to prove
that viewers legitimately consume the video streams, providing better transparency to
advertisers and a basis for viewers to earn Theta tokens for engaging with the content