There’s no denying the truth that Theta is among the most mentioned cryptocurrency tasks available on the market in 2021, a lot in order that the Theta token has already made its way into the highest 10 checklist of cryptocurrencies by general market capitalization, in what looks like virtually no time in any respect.
In its most elementary sense, Theta will be considered a decentralized video streaming platform that has been constructed utilizing a blockchain framework. The platform seeks to mitigate most of the issues being confronted by the normal video streaming sector, permitting for the relay of high-quality video content material at comparatively low prices.
On a extra technical entrance, it bears mentioning that Theta’s video streaming mechanism largely hinges on a distributed community of customers who voluntarily contribute their spare computing sources to make it possible for the platform works easily. For his or her efforts, they’re rewarded within the type of Theta Gasoline (TFuel) tokens.
Community customers can even earn TFuel tokens as a reward for sharing their content material on-line through the platform’s native content material transcription and distribution decentralized software known as EdgeCast. Consequently, Theta has put forth the technological proposition of a user-driven holistic media ecosystem that focuses on offering everybody with uninterrupted leisure providers, all whereas eliminating the necessity for any centralized authority.
However is that proposition actually driving sufficient curiosity to benefit a prime 10 spot by market capitalization?
A more in-depth take a look at Theta’s efficiency
Theta’s rise for the reason that begin of the 12 months has been nothing in need of spectacular, as is greatest highlighted by the truth that the forex’s worth has surged from $1.82 to only over $14 throughout that timespan.
It additionally bears stating that the worldwide video streaming trade is projected to expand at a compound annual progress price of 20.4% throughout the subsequent six years. The Theta workforce appears to be betting on precisely this and has devised a number of avenues by way of which to ship tangible end-user worth inside this fledgling area.
Offering his ideas as to why Theta has been on a tear lately, Kadan Stadelmann, chief technical officer of Komodo — an end-to-end blockchain infrastructure resolution — opined that Theta’s token mannequin makes use of blockchain know-how to reward content material creators all whereas eradicating intermediaries from the equation. He added:
“The market potential for Theta in addition to related tasks is gigantic. Right now’s hottest video platforms are centralized, they usually can arbitrarily determine to take your video down or ban creators from monetizing their content material.”
Moreover, all issues thought of, Stadelmann believes that it was solely a matter of time earlier than a decentralized content material platform like Theta would emerge from throughout the crypto ecosystem. In his view, the surge we’re witnessing proper now could be largely pushed by the truth that the mission’s native token is beginning to be adopted by an growing variety of customers throughout the globe.
Expounding her views on the matter, Marie Tatibouet, chief advertising and marketing officer of cryptocurrency alternate Gate.io, advised Cointelegraph that the concept of a decentralized video streaming platform is very intriguing to her, particularly for the reason that Theta workforce has been in a position to rope within the co-founders of two prime video streaming platforms — a la YouTube and Twitch — to its advisory panel.
Equally, as regards to how Theta has been in a position to break into crypto’s prime 10 rankings, Tatibouet believes that a big half of what’s fuelling the forex’s progress is its growing reputation in South Korea, with Bithumb recording a quantity of almost $10 million in relation to the THETA/KRW pair making it the fifth-most used pair within the Theta market. She added:
“Now, is Theta really value all of the hype? I’m not certain as a result of it’s too early to inform. I need to see how effectively their mainnet does. Nonetheless, they’ve a stable advisory workforce and are fixing an vital drawback, in order that’s positively working of their favor.”
Not everyone is offered on the mission
Although Theta continues to develop from energy to energy, with every passing day, there may be numerous people who find themselves not huge advocates for the mission. For instance, Scott Cunningham, host of the Crypto And Issues podcast, identified to Cointelegraph that Theta’s latest ascent has largely been associated to the continuing nonfungible token increase, including:
“Theta.television is designed to take folks’s cash since you can’t withdraw funds. The folks benefiting from Theta are largely individuals who run nodes and other people collaborating of their NFT hype. Theta.television principally siphons away customers TFuel and could be very dangerous for the community’s popularity. I beforehand identified final 12 months that 94% of the individuals who owned TFuel had been from the unique airdrop to Theta customers from March 2019.”
He additional added that though at first look the mission’s proposition, at the very least on paper, seems to be spectacular — i.e., the extra web bandwidth one offers whereas consuming Theta’s digital content material, the extra tokens a person can earn — as soon as folks get to know the nitty-gritty of what’s really happening, they are going to start to comprehend that they’ll solely spend their earned tokens throughout the platform, that too solely on extremely particular gadgets.
If that wasn’t sufficient, he identified that every one deposits on the platform are completely non-refundable. So, in essence, Cunningham believes that Theta is basically utilizing everybody’s web at no cost whereas giving the neighborhood again only a tiny fraction of what they’re really taking — that too as per their very own guidelines.
Theta mainnet launch pushed again to June
Amid rising expectations, Theta Labs launched a press release on March 24 notifying everybody that the mission’s mainnet launch had been delayed until June for the reason that developer workforce remains to be working towards “incorporating some constructing blocks” for an NFT market into the Theta Mainnet 3.0.
As quickly as information of the delay went public, the worth of Theta plummeted quickly, dropping by 25% in less than 24 hours main into March 25. Nonetheless, following the dip, the forex appears to be on a path of regular restoration, gaining virtually half of its misplaced worth again.
When requested in regards to the value slide in addition to mainnet delay, Theta refused to supply any commentary to Cointelegraph.
The Theta Mainnet 3.0 launch is about to put the muse for an NFT market and add over 100,000 Elite Edge Nodes to the platform. Moreover, it’s going to make it extra environment friendly to reward customers in addition to allow Theta customers to stake TFuel tokens.
In Stadelmann’s view, devising a scalable community for person rewards is a extremely advanced activity, particularly on content material platforms the place surges in demand may cause potential throughput challenges. He closed out by saying:
“Taking the additional two months to undergo a safe code evaluate earlier than Theta Mainnet 3.0 is vital and one thing extra tasks within the area ought to do. Within the short-term, it’d result in value drops for Theta and TFuel, however the long-term imaginative and prescient and skill to create a safe product are what creates a sustainable analysis.”
Disclaimer: Scott Cunningham’s quote was up to date.