Theta Token 101- What you need to know before investing
Remember back in 2005 when YouTube revolutionized the traditional video industry and everyone thought that that was the future of video entertainment. Well, the future is ready to be changed again. The theta token is taking the video entertainment a step further and delivering next-generation videos which will be powered by the users.
The Theta protocol is aimed at solving the video streaming problems prevalent in the entertainment industry today. It is building a platform for decentralized video streaming that is going to challenge the way the Content Delivery Networks work currently.
The present video-streaming scenario
The renowned content owners such as Amazon, CNN, Netflix etc. reach their viewers via a Content Delivery Network (CDN) wherein the providers build centres in locations across the globe. When the content is disseminated, the closer the viewers are to the centres, the better streaming they experience. This doesn’t work fairly for all the viewers around the globe especially in the economically underdeveloped regions. Moreover, the high bandwidth cost for the CDN providers poses a major problem.
How will Theta Token change this?
The Theta Network is attempting to provide a solution for this problem by replacing the CDN with a Decentralised Streaming Network (DSN). The company aims to achieve this by employing the blockchain technology to create p2p, decentralized network where viewers will be incentivized (in Theta tokens) for sharing computing and bandwidth resources with other users.
The viewers from around the globe will have the opportunity to turn their devices into caching nodes and hence forming a mesh network responsible for delivering any given video content to viewers worldwide. The caching nodes can earn tokens for relaying video streams to other viewers.
This will also allow the advertisers to target their audience directly, at a much cheaper cost. The viewers will also earn Theta Tokens for their engagement and attention with the content. The influencers (content providers) will earn Theta Token as a reward of viewer’s engagement.
The Theta Protocol
The Theta Protocol will be launched completely with the implementation of a new blockchain and a native token wherein:
- Advertisers will have the opportunity to fund their campaigns with tokens to support streaming sites, influencers, and viewers.
- Caching nodes will earn rewards for streaming the content.
- Viewers can earn tokens as rewards for their engagement.
- Streaming sites can reduce their costs by 70-80%.
How will the protocol work?
The protocol will work on the concept of Proof-of-Engagement and a Resource-Oriented Micropayment Pool. The latter is an off-chain pool which users can employ to create off-chain micropayment pools and any other user can use to withdraw from these transactions. That is to say, this will allow viewers to pay for a video content pulled from multiple caching nodes without any on-chain transaction. This is aimed at increasing the scalability of the blockchain.
This off-chain micropayment system can further be used to track the delivery of the content. Each micropayment recorded on the blockchain will denote a video segment(s) that was delivered to end viewers. These records will therefore be used as Proof-of-Engagement (PoE) allowing viewers to earn tokens in exchange for their attention and engagement.
The protocol also supports a set of smart contracts specialized specifically for video streaming and facilitating reward collection and distribution among the members of the blockchain.
What else does the Theta blockchain offer?
- P2P decentralized delivery of video content.
- Support for decentralized apps for movies, entertainment, enterprise, conferencing, esports etc.
- A Native Theta Blockchain and Protocol in addition to ERC-20 compliant tokens.
- Open-source network and protocol which is open to all developers and partners to build on the Theta network.
The Theta token, if implemented correctly, can take the video streaming industry to a whole new level where all participants benefit from the network. The team behind the project is small yet strong including YouTube co-founder Steve Chen as an advisor. The idea behind the product could in fact be revolutionary and replace the CDN network in the coming future. The project has already created a notable hype on the social media platforms and even the market cap for the project is quite attractive. The roadmap is also pretty wise and solid and it seems like a good decision to invest in this ICO.
Token Value Information
Total Supply: 1,000,000,000 THETA
Circulating Supply: 663,902,689 THETA
Market Cap: $106,158,040 USD
ICO price: $0.1960 USD
Current price: $0.1599 USD