There’s no denying the truth that Theta is likely one of the most mentioned cryptocurrency initiatives in the marketplace in 2021, a lot in order that the Theta token has already made its way into the highest 10 checklist of cryptocurrencies by total market capitalization, in what appears like nearly no time in any respect.
In its most simple sense, Theta may be regarded as 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 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 make it possible for the platform works easily. For his or her efforts, they’re rewarded within the type of Theta Gas (TFuel) tokens.
Community customers may 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 utility referred to 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 companies, all whereas eliminating the necessity for any centralized authority.
However is that proposition actually driving sufficient curiosity to advantage a high 10 spot by market capitalization?
A more in-depth take a look at Theta’s efficiency
Theta’s rise because the begin of the yr has been nothing in need of 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 business is projected to expand at a compound annual progress fee of 20.4% throughout the subsequent six years. The Theta staff appears to be betting on precisely this and has devised a number of avenues via 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 resolution — opined that Theta’s token mannequin makes use of blockchain expertise to reward content material creators all whereas eradicating intermediaries from the equation. He added:
“The market potential for Theta in addition to comparable initiatives is big. As we speak’s hottest video platforms are centralized, they usually 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 and marketing officer of cryptocurrency change Gate.io, instructed Cointelegraph that the thought of a decentralized video streaming platform is extremely intriguing to her, particularly because the Theta staff has been capable of rope within the co-founders of two high video streaming platforms — a la YouTube and Twitch — to its advisory panel.
Equally, as regards to how Theta has been capable of break into crypto’s high 10 rankings, Tatibouet believes that a big half of what’s fuelling the foreign money’s progress is its rising reputation in South Korea, with Bithumb recording a quantity of practically $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 positive as a result of it’s too early to inform. I need to see how effectively their mainnet does. Nevertheless, they’ve a stable advisory staff 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 power to power, with every passing day, there may be various people who find themselves not huge advocates for the undertaking. For instance, Scott Cunningham, host of the Crypto And Issues podcast, identified to Cointelegraph that Theta’s current ascent has largely been associated to the continuing nonfungible token growth, including:
“Theta.television is designed to take individuals’s cash since you can’t withdraw funds. The individuals benefiting from Theta are largely individuals who run nodes and folks collaborating of their NFT hype. Theta.television principally siphons away customers TFuel and could be very unhealthy for the community’s repute. I beforehand identified final yr that 94% of the individuals who owned TFuel have been from the unique airdrop to Theta customers from March 2019.”
He additional added that although at first look the undertaking’s proposition, not less than on paper, appears to be like spectacular — i.e., the extra web bandwidth one supplies whereas consuming Theta’s digital content material, the extra tokens a person can earn — as soon as individuals get to know the nitty-gritty of what’s really happening, they may start to understand that they will 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 actually utilizing everybody’s web without spending a dime 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 undertaking’s mainnet launch had been delayed until June because the developer staff 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. 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 worth slide in addition to mainnet delay, Theta refused to offer 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 should 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 process, 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 assessment earlier than Theta Mainnet 3.0 is essential and one thing extra initiatives within the house ought to do. Within the short-term, it would result in worth 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.”
Disclaimer: Scott Cunningham’s quote was up to date.