What is THETA?
THETA Network is a decentralized video delivery platform which utilizes proprietary blockchain technology to incentivize bandwidth sharing amongst viewers to improve quality and decrease cost.
This might sound complicated, but it’s a simple solution to a mounting pressure point, especially since video streaming is more popular than ever.
Generic Streaming Mentions have risen +67% YoY on a 90-day moving average.
As video quality increases, viewers naturally expect a higher quality:
Mentions of streaming in 2k an 4k resolution are up +60% YoY on a 90-day moving average.
These trends are putting immense pressure on existing content delivery networks, which are traditionally centralized:
In an effort to avert the trillions in infrastructure spending required to propagate the current system, the team at Theta Labs has pioneered a revolutionary new way to delivery content online.
The chart below details a basic breakdown of how the system works.
The Nitty Gritty
The content delivery system is supported by two unique cryptocurrencies: THETA and TFUEL.
THETA (THETA-USD) is akin to a share in the Theta blockchain itself, whereas TFUEL (TFUEL-USD) is the currency that makes it all work.
THETA functions as the governance token. THETA holders can stake their tokens, which helps keep the blockchain running and earns them TFUEL as a reward.
TFUEL is then leveraged by content providers to incentives viewers to share their unused bandwidth via proprietary edge computing algorithms. TFUEL can also be used to directly compensate content creators and as a currency for purchases on the platform itself.
Imagine paying your Netflix subscription with the cryptocurrency that you earned by watching Netflix. This is how the Theta blockchain is meant to work.
If this all sounds to-good-to be true, just look at some of the companies already running enterprise validator nodes (these are what really hold the blockchain together): Google (GOOGL), Sony (SNE), Samsung, and Binance.
These massive entities all have an apparent interest in what the Theta blockchain has to offer and their cosign serves as a massive vote of confidence.
Furthermore, Theta Labs has received 3 U.S. Patents for it’s decentralized data streaming and delivery network.
The technology is legit, and investors have started to take notice as well.
THETA Awareness is on the Rise
Comparing cashtag mentions of THETA and TFUEL against some of the largest cryptos in the market shows that awareness is growing rapidly:
Combined Theta & TFUEL cashtag mentions are up +4015% YoY on a 30-day moving average.
The number of retail investors talking about buying into the Theta blockchain is skyrocketing as well:
Some of this investment chatter can be chalked up to the meteoric rise in price which both THETA & TFUEL have experienced, yet, neither are available to buy and sell on a major U.S. exchanges.
Of course, early adopters clamoring for this eventuality — Mentions regarding THETA & TFUEL being listed on US exchanges are up +161% QoQ on a 30-day moving average.
The Theta blockchain has been purpose-built to address an impending problem for the streaming industry at large. It also has a variety of potential applications that could be expanded upon in the future (NFTs for example).
As with most blockchain technologies, the project is still in its infancy, but the Theta team is rife with industry professionals, including Steve Chen (co-founder of Youtube) and Justin Kan (co-founder of Twitch), and it has the backing of some the largest names in tech.
Impressive considering the relative lack of media attention the Theta project has received.
We’ll be watching THETA and others in the crypto space as consumer interest remains piqued.