There’s no denying the truth that Theta is among 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 record of cryptocurrencies by total market capitalization, in what appears like virtually no time in any respect.
In its most elementary sense, Theta could 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 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 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. 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 better 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 forex’s worth has surged from $1.82 to only over $14 throughout that timespan.
It additionally bears mentioning that the worldwide video streaming business is projected to expand at a compound annual development 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 via which to ship tangible end-user worth inside this fledgling area.
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 comparable initiatives is big. Immediately’s hottest video platforms are centralized, and so they can arbitrarily determine 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 mission’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, informed Cointelegraph that the concept of a decentralized video streaming platform is extremely intriguing to her, particularly because the 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 forex’s development is its rising recognition 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 truly value all of the hype? I’m not positive as a result of it’s too early to inform. I need to see how properly their mainnet does. Nevertheless, they’ve a strong advisory group and are fixing an necessary drawback, in order that’s undoubtedly working of their favor.”
Not all people is bought 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 large 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 continued nonfungible token increase, 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 other people taking part of their NFT hype. Theta.television principally siphons away customers TFuel and could be very dangerous for the community’s fame. I beforehand identified final yr that 94% of the individuals who owned TFuel had been from the unique airdrop to Theta customers from March 2019.”
He additional added that although at first look the mission’s proposition, no less than on paper, seems 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 individuals get to know the nitty-gritty of what’s truly occurring, they’ll start to understand 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 actually utilizing everybody’s web at no cost 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 mission’s mainnet launch had been delayed until June because the developer group 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 forex appears to be on a path of regular restoration, gaining virtually half of its misplaced worth again.
When requested concerning the value 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 would 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 consumer rewards is a extremely advanced 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 assessment earlier than Theta Mainnet 3.0 is necessary and one thing extra initiatives 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.