There’s no denying the truth that Theta is without doubt one of the most mentioned cryptocurrency tasks in the marketplace in 2021, a lot in order that the Theta token has already made its way into the highest 10 record of cryptocurrencies by general market capitalization, in what appears like nearly no time in any respect.
In its most elementary sense, Theta will be regarded as a decentralized video streaming platform that has been constructed utilizing a blockchain framework. The platform seeks to mitigate lots of the issues being confronted by the standard 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 guarantee that the platform works easily. For his or her efforts, they’re rewarded within the type of Theta Gasoline (TFuel) tokens.
Community customers may also earn Theta tokens as a reward for sharing their content material on-line by way of the platform’s native content material transcription and distribution decentralized software known as EdgeCast. Because of this, 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 advantage a prime 10 spot by market capitalization?
A more in-depth have a look at Theta’s efficiency
Theta’s rise for the reason that begin of the yr has been nothing wanting spectacular, as is finest highlighted by the truth that the foreign money’s worth has surged from $1.82 to simply over $14 throughout that timespan.
It additionally bears mentioning that the worldwide video streaming trade is projected to expand at a compound annual progress charge of 20.4% throughout the subsequent six years. The Theta group 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 house.
Offering his ideas as to why Theta has been on a tear just lately, Kadan Stadelmann, chief technical officer of Komodo — an end-to-end blockchain infrastructure answer — 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 big. At present’s hottest video platforms are centralized, and so they can arbitrarily resolve to take your video down or ban creators from monetizing their content material.”
Moreover, all issues thought-about, 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 undertaking’s native token is beginning to be adopted by an rising variety of customers throughout the globe.
Expounding her views on the matter, Marie Tatibouet, chief advertising officer of cryptocurrency change Gate.io, instructed Cointelegraph that the concept of a decentralized video streaming platform is extremely intriguing to her, particularly for the reason that Theta group 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, with reference 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 foreign money’s progress is its rising recognition 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 truly value all of the hype? I’m not certain as a result of it’s too early to inform. I wish to see how effectively their mainnet does. Nevertheless, they’ve a strong advisory group and are fixing an essential drawback, in order that’s undoubtedly working of their favor.”
Not all people is offered on the undertaking
Although Theta continues to develop from energy to energy, with every passing day, there’s numerous people who find themselves not large advocates for the undertaking. 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 growth, including:
“Theta.television is designed to take folks’s cash since you can’t withdraw funds. The folks benefiting from Theta are principally individuals who run nodes and other people collaborating of their NFT hype. Theta.television mainly siphons away customers TFuel and could be very dangerous for the community’s popularity. I beforehand identified that 94% of people that owned TFuel have been from the ICO.”
He additional added that although at first look the undertaking’s proposition, not less than on paper, appears spectacular — i.e., the extra web bandwidth one gives 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 truly happening, they are going to start to appreciate 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 each one deposits on the platform are completely non-refundable. So, in essence, Cunningham believes that Theta is basically utilizing everybody’s web without spending a dime whereas giving the group again only a tiny fraction of what they’re truly 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 undertaking’s mainnet launch had been delayed until June for the reason that developer group continues 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. Nevertheless, following the dip, the foreign money appears to be on a path of regular restoration, gaining nearly 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 inspiration for an NFT market and add over 100,000 Elite Edge Nodes to the platform. Moreover, it is 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 complicated job, 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 overview earlier than Theta Mainnet 3.0 is essential and one thing extra tasks within the house ought to do. Within the short-term, it would result in value drops for Theta and TFuel, however the long-term imaginative and prescient and talent to create a safe product are what creates a sustainable analysis.”