What Is Theta Fuel (TFUEL) How It Works & Where To Buy It?

Theta Fuel is the operational token of the Theta protocol. Essentially, it powers the Theta network – gas fees, smart contract deployments, and TFUEL are issued to stakers.

The optimization of the Theta network is achieved through network participants that contribute bandwidth resources, in return for TFUEL rewards.

TFUEL token is currently the 96th largest cryptocurrency in the world by market capitalization.

How Theta Fuel (TFUEL) Works

Theta network aims to revolutionize video streaming and video content distribution around the world. It’s a decentralized video streaming platform that uses users’ computing resources and re-distributes them to other users across the network.

Simply put, spare bandwidth obtained from users watching videos on the platform helps other users to also watch videos on the platform. Individuals that give up their spare bandwidth are rewarded with Theta Fuel (TFUEL) tokens.

There was a need for a dual-token network because each token has its own utility. Theta is used for staking and Theta Fuel is for operations and for rewarding Theta stakers.

The Theta Fuel supply is 5x larger than the supply of Theta. This is necessary because while Theta tokens can be staked, drastically reducing the supply, TFUEL tokens are required to be used daily to potentially power millions of transactions and various actions across the network.

What Is Theta Fuel (TFUEL) Used For?

Theta stakers are rewarded with TFUEL tokens. TFUEL tokens are used across the entire Theta ecosystem, although to watch videos on the platform viewers aren’t required to buy Theta Fuel.

The supply of Theta Fuel tokens increases by 5% annually, or as decided by the protocol, in order to meet certain network needs. The Theta Fuel price may experience some decline as supply increases.

Essentially, Theta introduced guardian nodes to help keep the Theta network secured. The Theta governance token is the only token that can be staked – TFUEL tokens are used to pay for the deployment of smart contracts and gas fees. Users who share their compute data as edge compute nodes get rewarded in TFUEL tokens.

Video platforms have become incredibly popular and most people opt to video stream various shows, events, and series – the dual-token Theta network ensures that TFUEL tokens power all these operations.

Many individuals capitalize on the TFUEL tokens’ price volatility and try to make profitable trades when there are fluctuations in the tokens’ price.

Where To Buy Theta Fuel

TFUEL tokens are frequently traded and they are available to purchase on most cryptocurrency exchanges. In March 2021 TFUEL token saw its most significant trading volumes when daily trading volumes reached $1.24 billion.

Five of the most popular crypto exchanges used by US traders are:

1. Gate.io
2. Coinbase
3. KuCoin
4. HTX
5. Crypto.com

Users can benefit from DApps in the Theta ecosystem. However, users require wallets that are compatible with the Theta network.

Many users can earn yields by interacting with DeFi applications within the Theta ecosystem.

About Theta Fuel (TFUEL)

How long has Theta Fuel (TFUEL) existed?

Mitch Liu and Jieyi Long founded Theta in 2017. The founders are extensively experienced – Liu founded mobile gaming and various online advertising startups, whereas Long worked on innovative live VR streaming technologies. The co-founder of YouTube, Steve Chen, is also an important part of the Theta team.

Since the TFUEL token was listed it has seen price fluctuations. And the Theta network has rapidly grown to become one of the most popular decentralized video streaming platforms in the world.

What’s controversial about Theta Network and TFUEL?

New projects are continuously emerging in the crypto space. Users need to educate themselves and research as much as possible before they invest in any project. The legal framework surrounding projects is very opaque, and many projects use this to their advantage.

Many retail investors fall victim to scams and ”rug pull” projects and end up losing significant amounts of money. Research as much as possible, make sure projects are credible, and compare information from multiple sources before investing.

Let’s take a look at the top two controversies surrounding Theta Blockchain and TFUEL:

• Competition – Youtube is Theta’s largest traditional competitor. Essentially, the concept of Theta encourages users to use the platform because it will be affordable and they can earn rewards. Theta’s biggest competitor is YouTube though.

  An estimated 8 in 10 people have their own YouTube account and more than 2,3 billion people use YouTube. YouTube has a considerable upper hand and this might never change if the adoption of Theta doesn’t happen on a global scale.

• Blockchain competitors – Multiple blockchain projects have similar platforms. Theta is up against competitors in the blockchain and traditional space.

  The development of the metaverse will be a catalyst for content distribution and the way users engage with content. Projects like Bloktopia and Verasity are building platforms that will revolutionize the way people interact. Theta is going to need to show its versatility and innovation to outperform its competitors.

How many Theta Fuel (TFUEL) tokens are there?

At the time of writing, Theta Fuel (TFUEL) has a circulating supply of 5,300,000,000 TFUEL and the total supply of Theta Fuel (TFUEL) is 5,300,000,000.

Can TFUEL be mined?

TFUEL is not a mineable cryptocurrency. Unlike Ethereum which uses proof-of-work consensus algorithms and requires intensive rigs to mine – Theta blockchain uses a proof-of-stake consensus algorithm.

Individuals who stake Theta tokens earn TFUEL tokens as a reward. Major edge nodes and guardian nodes receive the largest rewards because they have the highest allocations of tokens.

Users are encouraged to use the official theta wallet app – this is necessary to participate with DApps in the ecosystem.

Some centralized exchanges also offer TFUEL holders rewards if they stake their tokens for a certain duration, normally a minimum of 30 days.

What is the market cap of TFUEL?

The following calculation is a simple and effective way to work out the market cap of any cryptocurrency: the total amount of coins in circulation times the current market price.

TFUEL Market Cap = 1,300,000,000 x $0,1017 = $539 million (96th largest cryptocurrency by market cap).

The market cap continuously fluctuates according to circulating supply and market price.

Biggest Competitors Of Theta Network And TFUEL

Theta has quickly grown to become a majorly successful project which has a global reach. However, competition in the blockchain space is tough and the Theta team needs to keep building platforms and products which appeal to consumers.

The main competitors of Theta Network are:

• BRAVE (BAT)
• Cosmos (ATOM)
• APE Coin (APE)
• Bloktopia (BLOK)
• Verasity (VRA)

The entertainment and video streaming sector is flourishing at the moment and continues to see exponential growth. However, YouTube is currently the largest video streaming platform in the world. Projects like Theta, which are blockchain-based, have the potential to take over some market share from platforms like YouTube.

What Are The Future Plans Of Theta Network And TFUEL

Theta has managed to build a secure network that services consumers around the world. The adoption of Theta products and platforms is affected by the number of investors, both retail and institutions, that support the project.

Simply put, the platform plans to compete with YouTube and Netflix. Theta blockchain relies on running sustainably and securely to truly cater to a global market.

At the moment, there are numerous scandals and issues relating to censorship. Many people believe that the only true way to win back some freedoms is by decentralizing video streaming and ensuring these platforms are censorship-resistant.

As the Theta token grows in popularity it bolsters the popularity and utility of the TFUEL tokens.

Pros And Cons Of Theta Network And TFUEL

Pros:

• Decentralized system – Theta utilizes a system where the sharing of bandwidth lowers the cost to stream and makes it accessible for other users to benefit from the platform. Since its inception, the Theta blockchain supported the sharing of bandwidth and the rewarding of Theta stakers with TFUEL tokens.
• Rewards mechanism – Users that share their computing resources are rewarded with TFUEL tokens.
• Experienced team – The core team of founders and developers is extremely experienced in various global sectors – including mobile gaming, online advertising, and VR live streaming. Steve Chen is also a key member of the team – he’s the co-founder of YouTube which is the largest streaming platform in the world.
• Use case – Data is becoming unattainably expensive for many people around the world. Since the quality of video continues to increase at an exponential rate, the rate of data consumption has increased too. People from developing countries struggle to afford expensive data costs. The Theta network is capable of cutting data costs by more than 80%.

Cons:

• Competition – 8 in 10 people have their own YouTube account and the number of people that use the YouTube platform already exceeds 2 billion. Theta will have a significant challenge as it tries to compete in an already over-saturated market.

  Statistically speaking, it looks unlikely for a project like Theta to outperform competitors like YouTube. Theta’s decentralized platform has minuscule adoption rates compared to the platform’s competitors.

• Inflationary – TFUEL’s supply is said to increase by 5% annually. The supply of TFUEL is already 5 times larger than the supply of the Theta.