The term torrenting is probably familiar to many internet users. It is a peer-to-peer file transfer protocol that facilitates the faster transferring of files. The protocol should seem familiar to those looking into blockchain. They both promote decentralization and censor resistance.

A Look At The BitTorrent Protocol

Before we can dive into the token itself, we need to understand what the BitTorrent protocol really does. It was originally created in 2001 to aid large file sharing. When the internet was still young, large files posed a challenge for servers. The protocol allows servers to be eased of the burden of file sharing and creates a network of people downloading and sharing through use of .torrent files.

The actual torrent files only contain meta data for the files contained within. Users can download some or all of the files in a torrent. Once they do that they can contribute to the network by seeding the files back to others. Those downloading these files are known as leechers. Seeding is essentially offering additional download locations to the network which can boost speeds and availability.

There are many different websites that host torrent files, known as trackers. They allow users to search a large index and see how many seeders and leechers for each. More seeders meant the file was readily available for download, while those without seeders were essentially dead links.

BitTorrent, named after the protocol, is one of the most familiar clients as well. It was initially released in 2001 as the first client for the protocol. The client and the protocol have recently undergone some changes. In 2018 the protocol was picked up by the TRON Foundation. TRON relaunched it as an IPO on Binance, signaling the beginning of the BitTorrent token (BTT) as part of the ecosystem.

BitTorrent Tokenomics

BTT has a total supply of 990b tokens. They were initially distributed to different combinations of the TRON foundation, BitTorrent’s ecosystem, the dev team, and the public. The current circulating supply is 660b tokens. Although the price is still well below a cent, it has seen some growth in the last month to the tune of 422%.

Much of this growth can be attributed to a combination of the success of the TRON blockchain, partnerships, and the household name of BitTorrent. Regardless of price, the token still sits within the top 30 cryptos. It offers a 24 hour trading volume of a little over $3b, so it has a reliable amount of trading happening.

Use Cases for and Earning BTT

BTT is used to strengthen the protocol and offer incentives for using it. There are two main ways to earn and use BTT through the client. Alongside the in-client uses, there is also a staking opportunity outside of it.

BitTorrent Speed

BitTorrent Speed is the flagship service of the client. It allows users to spend BTT to get faster download speeds. This spent BTT is paid to the seeders of the file as a reward for contributing. This allows users of all kinds to get rewarded for using the network. Even though this service was launched, BitTorrent itself is still free to use for anyone like it always has been.

Since earnings depend on users using BTT to increase their speed, it can be hard to rely on receiving constant earnings. But if you’re able to find a high demand file, you have more potential for earnings.

I’m unable to find an up to date roadmap for BTT Speed, but it seems the service is pretty fleshed out as it is so I’m not sure there is much more happening.

BitTorrent File System

The second way to earn some BTT is through the BitTorrent File System (BTFS). BTFS acts as a distributed server for file storage. It offers users the opportunity to rent out hard drive space by becoming a node in the network. This storage is contracted out and the owner is paid in BTT, the amount can be specified by the owner.

Setup is pretty straightforward for BTFS. The first step is setting up the wallet in the client, this will be the first stop for any BTT earned and it can later be transferred out. From there the amount of hard drive space to allocated is specified. After the initial setup there is a validation phase that lasts up to three hours. This is the network validating the new BTFS node and then assigning a score to it.

As renters upload files, they are split into 30 shards and each shard is stored on a host. As mentioned earlier, the hard drive space is then contracted out and the fees for it are paid to the host every 30 days. As long as the host remains online, the shard is safely stored on the network.

Upcoming features to BTFS include staking, decentralized file validation features, and improved UIs for both renters and hosts. I’m happy to see improved UI to be listed, as it currently could be improved and more informative.

DLive

I won’t be going too deep into this streaming platform, but it is worth mentioning here. It was purchased by BitTorrent in 2019 and has since it offered a staking opportunity for BTT. The staking rewards come from 25% of every donation and subscription on DLive. They are paid out each day.

Transactions on DLive are paid with using their LEMON virtual currency which is valued at .012 and cannot be used outside the platform.

Final Thoughts

I really like the overall case in favor of BitTorrent. I think the project itself has a lot of good things going for it, especially being integrated in a tech that so many people use every day. The value of the token isn’t high right now, but it has a dedicated community behind it helping it maintain value and a solid market cap.

Right now I believe that the token needs a little more of a push to be truly successful. The brand name helps people recognize its use, and the rewards for participation are there. But they are unreliable right now, which can be off-putting for some.

I have high hopes that the project will mature into a great product. And I’m excited for the roadmap for BTFS. I think once the remaining features are in place, it will make it a more attractive way to be involved in file sharing.