The Theta Network (THETA) is a blockchain platform built as a content delivery mechanism for entertainment and media.
The hope is that users can use Theta to stream video and other content on any computer, mobile device, Smart TV, or Internet of Things (IoT) device. They claim some large companies including Alphabet (GOOG), Samsung, Sony, the Creative Artists Agency, Binance, Lionsgate, and MGM Studios participate in Theta’s Enterprise Validator and Governance Council. The Validator and Governance Council is the body that administers Theta.
They describe Theta as a software-as-a-service (SaaS) solution that will help entertainment and media companies build their own video delivery mechanisms. Hence, Theta is not a decentralized YouTube or Twitch. Instead, they intend Theta as an alternative to YouTube and Twitch.
They hope companies will build their own video platforms with Theta. For example, MGM, Sony, and Lionsgate could build platforms to deliver their movies and TV shows.
A Dual Network
The Theta Network (THETA) is a “dual network” of two systems. Those systems are the Theta Blockchain and the Theta Edge Network.
To elaborate, the Theta Blockchain is a decentralized finance ecosystem that supports payments, rewards, and a smart chain mechanism. The Theta Edge Network is the media delivery mechanism.
They designed and built the Theta Blockchain for media and entertainment companies. The Theta Blockchain has a unique two-layer design.
The first layer contains 20 to 30 Enterprise Validator Nodes. The Enterprise Validators are large corporations that govern the Theta Network through the validator and Governance Council. Each Enterprise Validator operates a Validator Node to distribute videos. Validator Nodes propose and approve new blocks in the Theta Blockchain. Enterprise Validators provide security.
In February 2022, Google (Alphabet), Blockchain Ventures, Samsung, Sony Europe, Binance, gumi Cryptos, the Creative Artists Agency, and Theta Labs ran Enterprise Validator Nodes. Other large organizations could join Theta.
The Second Layer of the Theta Blockchain contains 3,500 Guardian Nodes. Theta Community members run the Guardian Nodes. They claim the Theta Blockchain can process up to 1,000 transactions per second (TPS).
Theta Video Technology
Ultimately, they hope the Theta Network will offer fully decentralized encoding, storage, and peer-to-peer video delivery powered by over 100,000 global Edge Nodes.
Users will access the network through the Theta Video API. The Theta Video API is a simple application programming interface (API) that allows a content provider to access the Theta Network. The Theta Video API can ingest, store, and deliver videos.
Theta makes money by charging for the ingestion (uploading), storage, and delivery of videos. They charge $0.03 per minute to ingest videos, $0.002 to store a minute of video, $0.006 to deliver a minute of video. Theta claims it can reduce video ingesting costs by 40%, video storage costs by 30%, and video delivery costs by 60%.
Users they call Theta Guardians share bandwidth, storage, and computing with Theta’s Global Edge Network. In exchange, they reward Theta Guardians with TFUEL tokens. Users can Earn TFUEL, stake TFUEL, users can mine Theta NFT liquidity by using the TDROP mining token.
They claim there were 9,790 Edge Nodes, 3,259 Guardian Nodes, and 25 Validator Nodes on 10 December 2022.
Theta Smart Contracts
Theta (THETA) can reward users because it uses Turing-Complete Smart Contracts.
To explain, a Turing Machine is a mathematical model that describes the most powerful mechanical computer possible. Turing Completeness means a Smart Contract (a digital robot) is powerful enough to simulate a Turing Machine. Hence Turing Complete Smart Contracts are the most powerful Smart Contracts available.
The best known Turing Complete smart contract is the Ethereum Virtual Machine (EVM) the digital computer that runs the Ethereum blockchain. The Theta Virtual Machine, which runs the Theta Network, is compatible with the EVM. Hence, Theta is Ethereum compatible.
This means Ethereum decentralized apps (DApps) can operate on the Theta through the Theta Virtual Machine. Hence, Ethereum DApps can run Theta video.
The Theta Metachain
The Theta Metachain is an interconnected network of blockchains or a chain of chains.
They hope the Theta Metachain will support an unlimited number of transactions and process transactions in less than a second. Hence, the Theta Metachian could enable the near instant delivery of videos and eliminate buffering.
Theta uses a Dual Token design. The Theta Token (THETA) serves as the governance token for the Theta Network. Theta Fuel (TFUEL) is the operational token of the Theta Protocol. TFUEL pays for on-chain operations such as Edge Network relayers.
Relayers earn TFUEL when they relay Theta Videos. Theta Fuel serves as the gas that users pay to use the Theta Virtual Machine.
Digital Based Rights Management
The Theta Network will verify ownership of videos through nonfungible tokens (NFTs) and Digital Rights Management (DRM).
The ThetaDrop NFT platform allows users to manage the rights of their content through NFTs. The DRM NFTs demonstrate ownership of videos and other content.
Theoretically, content creators could track videos and other contents through NFTs and learn who is buying them. They could also block certain individuals from downloading videos. The hope is to protect the rights of intellectual property with NFTs.
What Value does the Theta Network (THETA) offer?
Mr. Market thinks the Theta Network Network (THETA) offers some value. For example, Theta was CoinMarketCap’s 15th-most trending cryptocurrency on 10 December 2022.
In contrast, Theta was CoinMarketCap’s 49th ranked cryptocurrency with an 78.72₵ Coin Price on 16 December 2022. CoinMarketCap gave Theta a $786.951 million Market Cap, an $787.234 million Fully Diluted Market Cap, and an $18.862 million 24-Hour Market Volume on 10 December 2022. Theta had a $18.858 Million Centralized Exchange (CEX) on 16 December 2022. They base those numbers on a Circulating and Total Supply of one billion Theta.
CoinGecko also ranked Theta the 53rd cryptocurrency on 16 December 2022. CoinGecko gave Theta an 85.8₵ Coin Price, a $788.688 million Market Cap, a $20.038 million 24-Hour Trading Volume, and an $788.688 million Fully Diluted Valuation on 16 December 2022. They base those numbers on a Circulating and Maximum Supply of one billion THETA.
What Value Could Theta obtain?
Streaming video is a profitable business that is growing. For example, Statista estimates worldwide streaming video revenue for 2022 at $80.83 billion.
Worldwide streaming video revenue could grow to $95.86 billion in 2023, $108.90 billion in 2024, $119.80 billion in 2025, $129.60 billion in 2026, and $139.20 billion in 2027, Statista forecasts. Plus, average revenue for a streaming video viewer could grow from $69.66 a year in 2022 to $85.06 a year in 2027, Statista forecasts.
The number of streaming video users grew from 1.127 billion in 2021 to 1.16 billion in 2022. Total worldwide streaming video users could grow to 1.297 billion in 2023, 1.408 billion in 2024, 1.499 billion in 2025, 1.575 billion in 2026, and 1.636 billion in 2027.
Thus, Theta Network (THETA) operates in a growing business that is generating revenue. If you are seeking a protocol that could cash in on the growth of streaming video, Theta Network is worth examining.
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