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 seems like virtually no time in any respect.
In its most simple sense, Theta might 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 ensure that the platform works easily. For his or her efforts, they’re rewarded within the type of Theta Gas (TFuel) tokens.
Community customers can even 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. In consequence, 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 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 12 months has been nothing in need of spectacular, as is greatest 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 stating that the worldwide video streaming business is projected to expand at a compound annual progress price of 20.4% inside the subsequent six years. The Theta workforce appears to be betting on precisely this and has devised a number of avenues by means of which to ship tangible end-user worth inside this fledgling house.
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 comparable initiatives is gigantic. At the moment’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 of, Stadelmann believes that it was solely a matter of time earlier than a decentralized content material platform like Theta would emerge from inside the crypto ecosystem. In his view, the surge we’re witnessing proper now could be largely pushed by the truth that the venture’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 officer of cryptocurrency trade Gate.io, instructed Cointelegraph that the concept of a decentralized video streaming platform is very intriguing to her, particularly because the 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, 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 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 positive as a result of it’s too early to inform. I wish to see how properly their mainnet does. Nonetheless, they’ve a strong advisory workforce and are fixing an necessary downside, in order that’s positively working of their favor.”
Not everyone is bought on the venture
Although Theta continues to develop from power to power, with every passing day, there may be quite a few people who find themselves not huge advocates for the venture. 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 continued nonfungible token growth, including:
“Theta.television is designed to take individuals’s cash since you can not withdraw funds. The individuals 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 may be very dangerous for the community’s status. I beforehand identified that 94% of people that owned TFuel had been from the ICO.”
He additional added that despite the fact that at first look the venture’s proposition, a minimum of on paper, appears to be like 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 individuals get to know the nitty-gritty of what’s really happening, they’ll start to appreciate that they will solely spend their earned tokens inside 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 free of charge 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 venture’s mainnet launch had been delayed until June because the developer workforce 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. Nonetheless, following the dip, the foreign money 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.Zero 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 overview earlier than Theta Mainnet 3.Zero is necessary and one thing extra initiatives within the house 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.”